Scam artists prey upon people who are so desperate they will set aside caution, as well as common sense. As problems with the credit industry and the economy increase, so does the volume of scams, fraud and identity theft victims.

Prevent being a victim of scams, fraud and identity theft with these free protection tips.

• Definition: Identity Theft and Identity Fraud
• Easiest Ways for Scam Artists To Commit Identity Theft and Fraud
• Tips to Protects Against Scam Artists Who Commit Identity Theft and Fraud

Definition: Identity Theft and Identity Fraud - Identity theft is a crime, and the words identity theft and identity fraud refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for financial gain. Personal data; such as Social Security numbers, bank accounts, credit card numbers, telephone calling card number, etc, can be used against the rightful owner to make charges or to take funds out of their bank or financial accounts, or even to open new accounts in their name. The worse identity theft scam is completing taking over someone's identity, running up vast debts and committing crimes while using the victim's name. In many cases, a victim's losses may include not only out-of-pocket financial losses, but substantial additional financial costs associated with trying to restore his reputation in the community and correcting erroneous information for which the criminal is responsible.

Easiest Ways for Scam Artists To Commit Identity Theft and Fraud - The easiest ways for scam artists to steal your identity are ways which do not require them to break into your home, nor to steal your purse or wallet. In public places, for example, criminals may engage in "shoulder surfing" ­ watching you from a nearby location as you punch in your telephone calling card number or credit card number ­ or listen in on your conversation if you give your credit card number over the telephone to a hotel or rental car company. Even the area near your home or office may not be secure. Some criminals engage in "dumpster diving" (going through your garbage cans or a communal dumpster or trash bin) to obtain copies of your checks, credit card or bank statements, or other records that typically bear your name, address, and even your telephone number. These types of records make it easier for criminals to get control over accounts in your name and assume your identity. If you receive applications for "preapproved" credit cards in the mail, but discard them without tearing up the enclosed materials, criminals may retrieve them and try to activate the cards for their use without your knowledge. (Some credit card companies, when sending credit cards, have adopted security measures that allow a card recipient to activate the card only from his or her home telephone number but this is not yet a universal practice.) Also, if your mail is delivered to a place where others have ready access to it, criminals may simply intercept and redirect your mail to another location.

In recent years, the Internet has become an appealing place for criminals to obtain identifying data, such as passwords or even banking information. In their haste to explore the exciting features of the Internet, many people respond to "spam" (unsolicited email) that promises them some benefit but requests identifying data, without realizing that in many cases, the requester has no intention of keeping his promise. In some cases, criminals reportedly have used computer technology to obtain large amounts of personal data.

With enough identifying information about an individual, a criminal can take over that individual's identity to conduct a wide range of crimes: for example, false applications for loans and credit cards, fraudulent withdrawals from bank accounts, fraudulent use of telephone calling cards, or obtaining other goods or privileges which the criminal might be denied if he were to use his real name. If the criminal takes steps to ensure that bills for the falsely obtained credit cards, or bank statements showing the unauthorized withdrawals, are sent to an address other than the victim's, the victim may not become aware of what is happing until the criminal has already inflicted substantial damage on the victim's assets, credit, and reputation.

Tips to Protect Against Scam Artists Who Commit Identity Theft and Fraud - To victims of identity theft and fraud, the task of fixing incorrect information about their financial or personal status, and trying to restore their good names and reputations, may seem as daunting as trying to solve a puzzle in which some of the pieces are missing and other pieces no longer fit as they once did. Unfortunately, the damage that criminals do in stealing another person's identity and using it to commit fraud often takes far longer to undo than it took the criminal to commit the crimes.

To reduce or minimize the risk of becoming a victim of identity theft or fraud, there are some basic steps you can take. For starters, just remember the word "SCAM":

"S" - Be stingy about giving out your personal information to others unless you have a reason to trust them, regardless of where you are:

At Home.

• Start by adopting a "need to know" approach to your personal data. Your credit card company may need to know your mother's maiden name, so that it can verify your identity when you call to inquire about your account. A person who calls you and says he's from your bank, however, doesn't need to know that information if it's already on file with your bank; the only purpose of such a call is to acquire that information for that person's personal benefit. Also, the more information that you have printed on your personal bank checks; such as your Social Security number or home telephone number, the more personal data you are routinely handing out to people who may not need that information.
• If someone you don't know calls you on the telephone and offers you the chance to receive a "major" credit card, a prize, or other valuable item, but asks you for personal data such as your Social Security number, credit card number or expiration date, or mother's maiden name, ask them to send you a written application form.
• If they won't do it, tell them you're not interested and hang up.
• If they will, review the application carefully when you receive it and make sure it's going to a company or financial institution that's well-known and reputable. The Better Business Bureau can give you information about businesses that have been the subject of complaints.

On Travel.

• If you're traveling, have your mail held at your local post office, or ask someone you know well and trust ­ another family member, a friend, or a neighbor ­ to collect and hold your mail while you're away.
• If you have to telephone someone while you're traveling, and need to pass on personal financial information to the person you're calling, don't do it at an open telephone booth where passersby can listen in on what you're saying; use a telephone booth where you can close the door, or wait until you're at a less public location to call.

"C" - Check your financial information regularly, and look for what should be there and what shouldn't:

What Should Be There.

• If you have bank or credit card accounts, you should be receiving monthly statements that list transactions for the most recent month or reporting period.
• If you're not receiving monthly statements for the accounts you know you have, call the financial institution or credit card company immediately and ask about it.
• If you're told that your statements are being mailed to another address that you haven't authorized, tell the financial institution or credit card representative immediately that you did not authorize the change of address and that someone may be improperly using your accounts. In that situation, you should also ask for copies of all statements and debit or charge transactions that have occurred since the last statement you received. Obtaining those copies will help you to work with the financial institution or credit card company in determining whether some or all of those debit or charge transactions were fraudulent.

What Shouldn't Be There.

• If someone has gotten your financial data and made unauthorized debits or charges against your financial accounts, checking your monthly statements carefully may be the quickest way for you to find out. Too many of us give those statements, or the enclosed checks or credit transactions, only a quick glance, and don't review them closely to make sure there are no unauthorized withdrawals or charges.
• If someone has managed to get access to your mail or other personal data, and opened any credit cards in your name or taken any funds from your bank account, contact your financial institution or credit card company immediately to report those transactions and to request further action.

"A" - Ask periodically for a credit report copy.

Your credit report should list all bank and financial accounts under your name, and will provide other indications of whether someone has wrongfully opened or used any accounts in your name.

"M" - Maintain careful records of your banking and financial accounts.

Even though financial institutions are required to maintain copies of your checks, debit transactions, and similar transactions for five years, you should retain your monthly statements and checks for at least one year, if not more. If you need to dispute a particular check or transaction ­ especially if they purport to bear your signatures ­ your original records will be more immediately accessible and useful to the institutions that you have contacted.

Even if you take all of these steps, however, it's still possible that you can become a victim of identity theft. Records containing your personal data; like your credit card receipts or car rental agreements, may be found by or shared with someone who decides to use your data for fraudulent purposes.

Victim Of Identity Theft - If you think you've become a victim of identity theft or fraud, act immediately to minimize the damage to your personal funds and financial accounts, as well as your reputation. Here's a list; based in part on a checklist prepared by the California Public Interest Research Group (CalPIRG) and the Privacy Rights Clearinghouse, of some actions that you should take right away:

• Contact the Federal Trade Commission (FTC) to report fraud and identity theft, whether Online,
• By telephone toll-free at 1-877-ID THEFT (877-438-4338) or TDD at 202-326-2502, or
• By mail to Consumer Response Center, FTC, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.

Under the Identity Theft and Assumption Deterrence Act , the Federal Trade Commission is responsible for receiving and processing complaints from people who believe they may be victims of identity theft, providing informational materials to those people, and referring those complaints to appropriate entities, including the major credit reporting agencies and law enforcement agencies. For further information, please check the FTC's identity theft Web pages . You can also call your local office of the FBI or the U.S. Secret Service to report crimes relating to identity theft and fraud.

You may also need to contact other agencies for other types of identity theft:

• Your local office of the Postal Inspection Service if you suspect that an identity thief has submitted a change-of-address form with the Post Office to redirect your mail, or has used the mail to commit frauds involving your identity;
• The Social Security Administration if you suspect that your Social Security number is being fraudulently used (call 800-269-0271 to report the fraud);
• The Internal Revenue Service if you suspect the improper use of identification information in connection with tax violations (call 1-800-829-0433 to report the violations).

Call the fraud units of the three principal credit reporting companies:

Equifax:

• To report fraud, call 1-800-525-6285 or write to P.O. Box 740250, Atlanta, GA 30374-0250.
• To purchase or get your annual free credit report, write to P.O. Box 740241, Atlanta, GA 30374-0241, or call 1-800-685-1111.
• To dispute information in your report, call the phone number provided on your credit report.
• To opt out of preapproved offers of credit, call 1-888-567-8688 or write to Equifax Options, P.O. Box 740123,Atlanta GA 30374-0123.

Experian (formerly TRW)

• To report fraud, call 1-888-397-3742, fax to 1-800-301-7196, or write to P.O. Box 1017, Allen, TX 75013.
• To purchase or get your annual free credit report: P.O. Box 2104, Allen TX 75013, or call 1-888-397-3742.
• To dispute information in your report, call the phone number provided on your credit report.
• To opt out of preapproved offers of credit and marketing lists, call 1-800-353-0809 or 1-888-5OPTOUT or write to P.O. Box 919, Allen, TX 75013.

Trans Union

• To report fraud, call 1-800-680-7289 or write to P.O. Box 6790, Fullerton, CA 92634.
• To purchase or get your annual free credit report, write to P.O. Box 390, Springfield, PA 19064 or call: 1-800-888-4213.
• To dispute information in your report, call the phone number provided on your credit report.
• To opt out of preapproved offers of credit and marketing lists, call 1-800-680-7293 or 1-888-5OPTOUT or write to P.O Box 97328, Jackson, MS 39238.

Contact all creditors with whom your name or identifying data have been fraudulently used. For example, you may need to contact your long distance telephone company if your long distance calling card has been stolen or you find fraudulent charges on your bill.

Contact all financial institutions where you have accounts that an identity thief has taken over or that have been created in your name but without your knowledge. You may need to cancel those accounts, place stop payment orders on any outstanding checks that may not have cleared, and change your Automated Teller Machine (ATM) card, account, and Personal Identification Number (PIN).

Contact the major check verification companies (listed in the CalPIRG Privacy Rights Clearinghouse checklist) if you have had checks stolen or bank accounts set up by an identity thief. In particular, if you know that a particular merchant has received a check stolen from you, contact the verification company that the merchant uses:

• CheckRite: 1-800-766-2748
• ChexSystems: 1-800-428-9623 (closed checking accounts)
• CrossCheck: 1-800-552-1900
• Equifax: 1-800-437-5120
• National Processing Co. (NPC): 1-800-526-5380
• SCAN: 1-800-262-7771
• TeleCheck: 1-800-710-9898