Identity theft refers to crimes perpetuated by stealing an individual’s personal data. It is fast becoming the worst kind of commercial crime in history. According to the study conducted by the Association of Certified Fraud Examiners, fraud brought by identity theft costs US organizations to lose approximately $600B or six percent of annual revenues.

The study furthermore revealed that fraud schemes are able to operate for about one and a half years prior to detection.

With the numbers only continuing to worsen and concerned authorities and industries only starting to formulate and implement tighter security measures, it is up to consumers themselves to proactively take the necessary steps for added protection.

Firstly, they must be aware of the various ways identity thieves are able to access their personal data. The Identity Theft Resource Center, as well as other sources, has highlighted the following situations for providing openings to identity thieves: dumpster diving; theft of wallets, mail, and other objects or documents containing vital information; information gleaned from public conversations; deceptive conversations over the phone or email; illegal purchase of information; and lastly, use of malware and hardware with similar functions.

Knowing when you’re most vulnerable is the best way to determine the appropriate solution. To eradicate problems with dumpster diving, for instance, make it a habit to shred all important documents into pieces.

If you find anything suspicious, the first thing you can do is obtain the latest copy of your credit statement from your bank. If possible, obtain a copy of your credit report as well. These documents will let you know if your account has been used without your knowledge and approval.

Determine the source of these activities. A phone call would do, but a personal visit would be better. What was purchased? How much was spent? Where did the unknown transaction take place? Try ascertaining as well how it is the unidentified user was able to access your accounts. Learn from your mistakes.

If you have confirmed for yourself that you have become a victim of identity theft, it is time to report directly to the authorities. Prepare all possible evidence of your innocence and ready them for submission.

If you’re lucky, your bank would be ready to reimburse you for your losses with just a few preliminary questions. If not, prepare to have their representatives subject you to an identity theft investigation – similar to what you may have been previously attempted to do for yourself.

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