While imaginary terrors stalk many folks these days, identity theft often seems to be a very real threat to an individual's security. At a time when many Americans opt for online purchases and investment strategies, what can a person do to keep her identity and sanity intact? An explanation of this crime and some tactics to help you avoid this catastrophe follow?

Identity theft (IDT) occurs when someone uses personal information, such as a name, Social Security number, credit card number or other identifying information, without that person's permission to commit fraud or other crimes. If a person experiences IDT, she can spend months, years, and hard-earned money to clean up after the thieves and to restore her good name and credit rating. This victim may lose opportunities for jobs, loans, and may even be issued warrants for crimes that she didn't commit.

There are a few left-handed ways to make sure that your identity is never stolen: first, make sure that your credit report stinks; also, make sure that you tend to lose your Social Security card. Additionally, if you aren't well-known and you live well under the poverty level, then you might sleep well - at least over this issue. But if you strive to keep your credit report healthy, if you keep up with all your paperwork when your life changes, and if you consider yourself to be at least a middle-class American, then you might have a problem on your hands.

Fortunately, the Federal Trade Commission (FTC) offers some advice to follow right on the front end with their ID Theft homepage. However, the advice that they offer is for those who already suspect or have experienced IDT. If you want to know more about your risk factors, you need to dig a little deeper into this site.

The FTC site contains statistics about IDT's risk factors in a .pdf file:

1. Credit card theft ranked highest among all forms of IDT at 38% in 2004.
   
   
2. Utilities fraud ranked second-highest at 19%.
   
   
3. Bank fraud follows at a close 18%.
   
   
4. Bottom-feeders in the IDT fraud pond like to participate in government document/benefits and loan fraud.
   
   
5. The percentage of "Electronic Fund Transfer" related IDT more than doubled between 2002 and 2004.
   
   
6. If you live in Phoenix/Mesa/Scottsdale, AZ, Riverside/San Bernardino/Ontario, CA, or Las Vegas/Paradise NV, then your risk for IDT is higher than the national average. However, once a crack-down has begun in high-risk areas, thieves often move into safer grounds. In one instance, Pittsburgh, PA reported that Miami thieves were moving into southwestern PA to set up shop because the region was ripe with unsuspecting victims.

What can you learn from this information? First, know that your credit cards are thieves' most coveted items. In this case, you might become more aware of suspicious activities found in your mailbox or in your online bills. Secondly, protect your SS# like gold. You don't need your actual SS card except in circumstances like when you obtain a new driver's license, so lock that baby up in a safety deposit box along with your other personal papers. As for passing out your actual SS#, try to convince your receiver - a person or institution that absolutely needs that number to complete a transaction - that you need to deliver this number by phone (although some might argue that phone calls can be compromised as well as mail or Internet).

Third, where you live may or may not affect your risks for IDT. If you read the Pittsburgh Tribune-Review article linked above, you might have noticed that IDT rings have formed in some unlikely places, and that their numbers have increased. Until laws that govern IDT have strengthened and until rings have been shattered, your choice of residence doesn't guarantee your safety. But, if you look at the numbers of complaints registered for IDT within 2004, the odds of an IDT experience still remain somewhat slim.

The FTC .pdf file shows that IDT complaints (from the Sentinel Clearinghouse - see Appendix A in that report) numbered 246,570 in 2004. That number seems staggering, but if you compare FTC table to the overall U.S. population in 2004, which numbered 293,027,571 you'll discover that the number of IDT complaints lodged equals less than .1% of the total population (.1% x 293,027,571 = 293,017). In fact, the number of complaints lodged equals less than the total population of Las Vegas (376,000).

Finally, the term "electronic funds transfer" might have caught your eye. Electronic funds transfers are highly respected among Internet users who value their time, gas money, and convenience factors. Electronic funds transfers, also, are part of the everyday online investment world. If you scroll down that FTC .pdf file to page 70, you'll notice that complaints against online investments were at 2,515 (1% of the total number of complaints) in 2002. While the complaints that went through the FTC clearinghouse increased a percentage point in 2003, the numbers decreased in 2004 by a hair.

Notice that the numbers of complaints against online investment activities is compared to the total number of IDT and fraud calls for any given calendar year. In other words, a total of 2,622 calls out of 635,173 were lodged for 2004. That total (less than ? of 1% of 635,173) isn't much to worry about, especially if you never won a contest in your life. According to these FTC figures, the chances that your identity will be stolen through online investment activities are - currently - almost nonexistent.

I don't mean to discount fraud, however, because fraud can be just as harmful to credit as IDT, and fraudulent crimes happen more often. Please know that BUYandHOLD uses the latest technology, including firewalls, updates, and security measures to protect you and your money from theft and fraudulent activities. That said, it's always a good idea to check your balance and activities on a regular basis (like once or twice a month when you make a purchase or deposit), and report any suspicious activity immediately. A little surveillance on your part might help you maintain your peace of mind and help you to keep an eye on new investment possibilities as well.

Until Next Week,
Linda Goin