Over 8 Million Identity Theft Victims a Year

The Federal Trade Commission just released the results of a survey that shows a whopping 8.3 million of us - 3.7 percent of all American adults - were victims of identity theft in 2005. About half of the time, the thieves made off with goods or services that cost $500 or less. Ten percent of the time, they got at least $6,000 worth.

Here are the FTC's five main findings about the victims:

1. About 3.2 million cardholders found unauthorized charges on their credit cards, while some 3.3 million had their non-credit card accounts misused.
2. About 1.8 million found that new accounts were opened in their names, or that their personal information was used to commit other frauds. Almost one-quarter of these victims didn’t find out about the misuse of their info until at least six months after it started.
3. Over 50% incurred no out-of-pocket expenses as a result of their identity theft, but 10% reported costs of $1,200 or more. The sooner people found out about the crime, the less it cost them and the less the thieves got.
4. Half said they spent four hours or less straightening out their accounts, which says to me that these folks must have found out about the problem right away, before new accounts were opened in their names. The other half reported spending more than four hours, which seems more in line with the horror stories we’ve all heard. Ten percent spent at least 55 hours resolving their problems. Of that 10%, half spent at least 130 hours on them. Ugh!
5. Sadly, more than one-third had credit problems over time. For example, some were: bothered by debt collectors, denied new credit or loans, and/or unable to use their existing credit cards or bank accounts. Some people even had their utilities cut off, while others ended up in jail.

What You Can Do to Protect Your Identity
Given these findings … and this time of year … when so many of us are whipping out the plastic at ATMs and in places where our wallets may get stolen, it's crucial to do what we can to protect our identities. For starters, be sure to check your credit reports regularly, and here are some of the other key precautions Credit.com recommends:

• Do not carry your Social Security with you; instead, store it somewhere safe, such as in a safe      deposit box.
• Buy a shredder and destroy sensitive documents, receipts, and mail.
• Select complicated passwords that combine numbers and letters (i.e. 5ps98xw).
• Don't include your Social Security number or driver's license number on your checks.
• Memorize your passwords and pin numbers; never write them down!

For more of Credit.com's advice on what you can do to keep your identity safe, click here. And if you are in the unfortunate position of having an identity theft emergency, click here, with my sympathies.

Do you have an identity theft horror story that you care to share? We'll be happy to commiserate with you and offer suggestions where we can.

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Comments

[Brigitte]

You give really scary facts about identity theft. I think, the main reason why so many cardholders faced identity theft is that most of us are careless. We simply do not stick to the rules of identity protection and let fraudsters deceive us. Check this link http://www.creditcardspecialist.com you will find here a lot of information on identity theft issues.