Some simple steps you can use to prevent identity theft.

Identity theft can occur when someone uses your personal information without your permission. Identity theft is a major problem in today's society and it can affect anyone. In order to prevent identity theft it is crucial that you do everything you can to protect your personal information. Identity theft can cause long-term financial harm to you because, once the thief has enough of your personal information, he or she can commit financial crimes such as applying for and receiving credit cards and loans in your name or making significant purchases on your credit cards or other financial accounts. This can damage your ability to get credit on your own for years afterwards. People whose identities have been stolen can spend years cleaning up the mess thieves have made of their good name and credit record, not to mention a significant amount of money! While your financial good name is damaged, you may miss out on job opportunities, be refused loans for a home or car, or even get arrested for crimes you didn't commit.

Identity theft is a shockingly simple crime to pull off. According to a survey commissioned by the Federal Trade Commission (FTC), an estimated 10 million Americans become victims of some form of identity theft each year. The estimated loss in business revenue is estimated at more than $33 billion annually.

Ideally, prevent identity theft before it happens to you! Keep a eye out for warning signs: a denied credit application notice, collection agency calls, a revoked drivers license, or changes to your bills that you did not initiate. Prevent identity thieves from getting your personal information in the first place. Some of the typical ways that thieves obtain their information are by:

• stealing your wallet or purse to get your identification and credit cards.
• "dumpster diving” - digging through your trash.
• stealing your mail, especially bank and credit card statements, pre-approved credit offers, new check deliveries, or your tax information.
• Posing as you and completing a "change of address form" to divert your mail to another location.
• Pretending to be a legitimate business or government official to scam information from you.

You can get a more complete list of the ways that identity thieves steal information from the Federal Trade Commission web site: http://www.ftc.gov/.

Some of the steps you can take to avoid becoming a victim of identity theft are to:

• Buy a shredder. Shred all communications from doctors and other health care providers, banks and financial institutions and anything else that contains personal information. Be sure to shred any credit offers you get in the mail.
• Keep track of your credit cards. Always put them back in your wallet or purse immediately after using them. Keep your receipts; when you get your credit card statement, match the receipts to the transactions listed on the statement. Call your credit card company immediately if there are discrepancies.
• Never put your outgoing mail in your mailbox. Take it directly to the post office instead.
• Update the firewall, spyware and virus protection software on your home and business computers.
• Do not carry your Social Security card with you. Give out your Social Security number only when absolutely necessary. If you can, only give out the last four digits of you number.
• Don't give out personal information on the phone, through the mail or over the Internet unless you've initiated the contact or are sure you know who you're dealing with.
• At least once a year contact the three major credit bureaus to obtain copies of your credit reports and examine them carefully for any discrepancies.

If you do have the misfortune to become a victim of identity theft, there are some concrete steps you can take to get your life back on track. Immediately stop all payments on your credit and bank cards. Close your existing bank account and open new ones. Report an identity theft by calling the FTC's ID Theft Hotline-1-877-ID-THEFT (438-4338) or use the FTC's online ID Theft Complaint form (http://www.consumer.gov/idtheft/index.html).

In today's culture identity theft is something that everyone needs to know how to prevent. Make sure that you know the warning signs of identity theft and know what to do if it happens to you.