Identity theft is when someone uses your personally identifiable information (like Social Security number, financial account numbers, credit card numbers, etc.) to commit crimes or fraud.

Identity theft is a growing crime these days, and it’s important to know about identity theft protection so you can guard against unwanted compromises with your financial information.

Istockphoto.com/Selimaksan

Below you’ll find stats on identity theft and some ways the Federal Trade Commission is encouraging you to protect yourself from identity theft.

Statistics on Identity Theft

Here are the  latest statistics on identity theft according to Identity Hawk:

• There were more than 11 million ID Theft cases in 2009
• 66% of stolen personal information is used to open new credit accounts
• 28% is used to buy cellphone subscriptions
• At least 33% open new checking accounts to write bad checks
• An identity theft victim spends on average 330 hours and $1,000 clearing his or her name
• 70% are unsuccessful in removing negative credit information from their credit reports
• 47% of victims experience difficulty getting any kind of credit
• 40% report profound stress in their personal lives as a result of identity theft
• 11% say that the theft has impaired their ability to get jobs (with more employers looking at applicants’ credit information when making hiring decisions, this trend is expected to increase)
• 43% of victims think they know the thieves who stole their personal information

Helpful Identity Theft Protection Tips

The FTC has a catchy way to remember identity theft protection tips. You can view the document here.  Here’s what it says:

Deter

• Shred financial documents and paperwork with personal information before you discard them.
• Protect your Social Security number. Don’t carry your Social Security card in your wallet or write your Social Security number on a check. Give it out only if absolutely necessary or ask to use another identifier.
• Don’t give out personal information on the phone, through the mail, or over the Internet unless you know who you are dealing with. Avoid disclosing personal financial information when using public wireless connections.
• Never click on links sent in unsolicited emails; instead, type in a web address you know. Use firewalls, anti-spyware, and anti-virus software to protect your home computer; keep them up-to-date.
• Don’t use an obvious password like your birth date, your mother’s maiden name, or the last four digits of your Social Security number.
• Keep your personal information in a secure place at home, especially if you have roommates, employ outside help or are having work done in your house.

Detect

• Be alert to signs that require immediate attention:
  • Bills that do not arrive as expected
  • Unexpected credit cards or account statements
  • Denials of credit for no apparent reason
  • Calls or letters about purchases you did not make
  • Charges on your financial statements that you don’t recognize

• Inspect your credit report:
  • Credit reports contain information about you, including what accounts you have and your bill paying history.
  • The law requires the major nationwide consumer reporting companies—Equifax, Experian, and TransUnion—to give you a free copy of your credit report every 12 months if you ask for it.
  • Visit www.AnnualCreditReport.com or call 1-877-322-8228, a service created by these three companies, to order your free annual credit reports. You also can write: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
  • If you see accounts or addresses you don’t recognize or information that is inaccurate, contact the credit reporting company and the information provider. To find out how to correct errors on your credit report, visit ftc.gov/idtheft.

Defend

• Place a “Fraud Alert” on your credit reports, and review the reports carefully. The alert tells creditors to follow certain procedures before they open new accounts in your name or make changes to your existing accounts. The three nationwide consumer reporting companies have toll-free numbers for placing an initial 90-day fraud alert; a call to one company is sufficient:
  • Experian: 1-888-EXPERIAN (397-3742)
  • TransUnion: 1-800-680-7289
  • Equifax: 1-800-525-6285

  Placing a fraud alert entitles you to free copies of your credit reports. Look for inquiries from companies you haven’t
  contacted, accounts you didn’t open, and debts on your accounts that you can’t explain.

• Contact the security or fraud departments of each company where an account was opened or charged without your okay.
  • Follow up in writing, with copies of supporting documents.
  • Use the ID Theft Affidavit at ftc.gov/idtheft to support your written statement.
  • Ask for verification that the disputed account has been dealt with and the fraudulent debts discharged.
  • Keep copies of documents and records of your conversations about the theft.
• File a police report. File a report with law enforcement officials to help you correct your credit report and deal with creditors who may want proof of the crime.
• Report the theft to the Federal Trade Commission. Your report helps law enforcement officials across the country in their investigations.
  • Online: ftc.gov/idtheft
  • By phone: 1-877-ID-THEFT (438-4338) or TTY, 1-866-653-4261
  • By mail: Identity Theft Clearinghouse, Federal Trade Commission, Washington, DC 20580

Friday Finance Round Up is a weekly post that includes interesting articles and blog posts on money found during the week from across the web. 

This week’s articles include topics on financial checklists for parents, how to give when you don’t have extra money, letting contentment be a guiding principle for your finances, protecting your Facebook identity online and an extreme case of frugality – the guy who lives with no money. 

______________________________________________________________________________________________

Financial Checklist for New Parents – Bargaineering

As a Dad of two myself, the first few weeks of having a new child can be daunting.  This is a great list to help you remember the important financial things that should be done.

  _____________________________________________________________________________________________

Extreme Personal Finance: Daniel Suelo “The Man Without Money” - Get Rich Slowly

Talk about extreme!  This guy has been living without money since 2000.  Call it simplicity, genius or just plain nuts, you make the call. 

_____________________________________________________________________________________________

No Extra Money to Give? Ways to Help Without Money – Out of Debt Christian

Many people say they don’t have any extra money to give away, but they don’t search out opportunities to give of their time, talent or other resources.  Alison offers up some great ideas to be generous in tough economic times. 

_____________________________________________________________________________________________

Contentment: A Great Financial Principle – Personal Finance By the Book

Joe Plemon offers a great post by showing us that contentment in the Lord is a foundational principle to making wise money decisions.  Happiness is not derived from accumulating stuff, it’s found when we are content in the Lord.

_____________________________________________________________________________________________

Protect Your Identity Online: Facebook a Social Hackers Dream – FiscalGeek

If you haven’t looked at your Facebook profile or settings lately, you may want to read this post and determine if you need to change some things. 

_____________________________________________________________________________________________

Friday Finance Round Up is a weekly post that includes interesting articles and blog posts on money found during the week from across the web.

____________________________________________________________________________________________

Money: A Spiritual Check Up – Money Help For Christians

When we make decisions our choices have the potential to affect one of the following three parties in either a positive or negative way: God, Others, Self.

_____________________________________________________________________________________________

An Introduction to Money Market Accounts – Get Rich Slowly

Since I touched on Money Market Accounts in my post Setting Up a Financial Safety Net – Three Tier Cash Reserve, I thought this would be a good follow up for more information. 

_____________________________________________________________________________________________

Where the US Gets Its Oil – Money Energy

Thought this was an interesting post on the top five countries from which the US imports its oil.  #1 may surprise you!

_____________________________________________________________________________________________

Your SSN Can Now Be Accurately Guessed Using Date and Place of Birth – Wise Bread

It seems that nothing is safe any more. And now your Social Security Number, the lynchpin to your credit score, taxes, government benefits and more, is under attack. It can be guessed, with a staggering degree of accuracy, using simple information you probably have on sites like Facebook and MySpace.

_____________________________________________________________________________________________

Trapped With a Time Share – Thrive

 I seem to always run into people who wished they could get rid of their time shares.  Perhaps you can relate?

_____________________________________________________________________________________________