The simple convenience of credit cards brought with it a surprisingly easy opportunity for thieves to take advantage of unsuspecting consumers and use their cards - and identity - to steal money and make fraudulent purchases. Security technology quickly caught up, however, and now the issue is one that is being fought aggressively by the credit industry.

The latest in the war against identity theft is the ability to freeze credit. Consumers are now able to utilize strong protection by means of freezing their credit reports with the primary agencies that report credit. This is possible even regardless of state laws.

The first one to have done this was TransUnion, which granted credit freezes to all consumers on October 15th. It only took a few weeks however for Equifax and Experian to do the same. Since the first of November, consumers have been given another valuable tool to protect their finances and their identity.

Victims of identity theft have this option for free, while those who haven’t been hit by the crime of the new century will have to pay a $10 dollar free in order to place, lift, or slowly thaw their credit. The idea behind the maneuver was to provide consumers more opportunities to choose a fraud solution for their specific needs. It follows a trend to give consumers more power to control their reports and to make certain that their information stays secure.

This article is not directly related to ID theft, but the prevention of fraud is very similar to that of ID theft and  should be beneficial to the majority of you

The Consumer Federation of America, one of the country’s biggest consumer watchdog groups, released a warning recently: the more desperate you are financially, the more vulnerable you are to the predations of unscrupulous white-collar criminals. These are scammers who wont’ hesitate to turn your worry to their cruel advantage. Thus, in the wake of the past year’s economic troubles, more and more Americans are potential victims of fraud.

“In economic hard times, consumers are even more vulnerable to phony promises to help them financially or money-making schemes,” explained CFA leader Susan Grant.

The CFA had just issued a survey that confirmed Grant’s generalization. Locally-based consumer interest groups from throughout America reported that some of consumers’ most consistent complaints of fraud concerned loan providers, car salesmen offering criminal “deals,” and online organizations promising mortgage and debt relief.

One example par excellence of today’s scammers was an organization that recently operated in the state of Georgia. This company enticed its customers, desperately hit by the housing crisis, to pay hundreds of dollars supposedly to save their houses from foreclosure. The company promised to help consumers appraise and refinance their homes, and to help them fill out the complicated paperwork that these processes entailed. In the end, this company performed no services for its customers. In effect, it took their money and ran.

These days, consumers have to be more vigilant than ever to avoid becoming the victims of a scam. How can you tell if you are encountering the smooth talk of a criminal? Here are five ways.

First, take note if that car salesman, broker, or loan agent seems to be exerting undue effort to convince you to buy his or her product, or to enter into agreement with the company that he or she represents. Beware of emotional appeals, or threats. Real companies generally offer compartively simple services or goods, and allow their products to speak for themselves. They are rarely ingratiating or pushy.

Second, be especially concerned about “too good to be true” offers. Do not let your desperation be your guide. If something seems too good to be true, it probably is.

Third, investigate companies that you deem suspicious, or that investments from you. The Better Business Bureau is a useful organization to help you towards this end. If you’re buying something costly over the Internet, demand references, and contact those references. Find out if that online company you’re buying from has an address.

Fourth, it’s helpful to use a credit card to pay online businesses instead of taking money directly out of your bank. That way, if you find that you have paid for a scam, you can convince your credit card company to refund you. This is considerably easier than demanding a refund from your bank. Do pay off your credit card purchase as soon as you can, to avoid being dragged into debt, however.

Finally, leave a paper trail. Ask for specific, written agreements regarding any offer you take up. Make sure to read those agreements, and don’t be afraid to contest a point you aren’t okay with.

For the most part, once an individual throws out his or her trash, there is no legal recourse to it and there can be no expectation of privacy. This means anyone is free to go through a person’s trash once it is in a public area waiting for disposal. As unsettling as rifling through trash may sound, it is one of the top methods by which identity thieves get their hands on prized information.

It is not uncommon for many to assume tearing up a credit card or bank statement will be a deterrent for thieves. However, these types of criminals are a determined bunch that has no problem piecing mail together to find out what they need to know. With names, addresses and account numbers, credit card and bank statements provide solid information for thieves. That is why shredding these documents into small pieces becomes so important. For added security, experts recommend using a paper shredder with a crosscutting motion. This more or less turns a document into confetti, something that stops identity thieves right in their tracks.

Personal paper shredders can run anywhere from thirty dollars on up to more than one hundred dollars. Doctor’s offices, insurance agencies and other businesses that deal with sensitive information on a regular basis would be wise to opt for a large scale professional shredding service. Original documents should always be kept safe; however, records that are outdated or no longer needed should also be shredded rather than tossed out. As ahs been found, thieves are never beyond using outdated information.

Examples of information and documents that should be shredded are [there will be others based on your personal circumstances]:

• Utility bills
• Legal or insurance documents
• Pay stubs
• ATM receipts
• Credit card and bank statements
• Any papers with a Social Security number
• Any papers displaying a maiden name
• Luggage tags
• Pre screened credit card offers
• Medical records
• Copies of transcripts
• Old résumés
• Unlaminated employee identification tags
• Address labels
• Cancelled checks or checks from defunct bank accounts
• Old credit reports
• Extra birth certificate copies
• Investment statements
• Old driver’s licenses
• Old airline tickets
• Old passports and visas
• Transcripts
• Tax forms
• Employment records
• Records displaying PIN numbers
• Documents that contain signatures

Items that offer any kind of personal information should never be left to chance and thrown out without shredding. Even if an identity thief can only gain a small amount of information at a time, it is not uncommon for fraudsters to stake out a target over several weeks. This allows crooks to build a good portfolio of information that they can later use to their advantage.

Unfortunately, it is not always a thief looking for medical treatment that can cause problems. It is not uncommon for doctors with less than scrupulous ethics to fraudulently bill insurance companies in order to seek reimbursement for bogus procedures. With access to thousands of records, doctors can pick patients that only see a doctor once per year and use their information several times before they ever find out.

A new venture for organized crime rings is not only dealing in stolen medical records but stolen billing codes from legitimate doctors’ offices. Fly by night clinics are set up offering free health screenings, which then take a patient’s information and bill an insurance company for any number of phony tests and x rays.

Once an individual is identified as a victim of medical identity theft, he or she also faces the problem of correcting their medical history. Unlike a credit report where one has the opportunity to challenge wrong information and have it removed, this is not the case for medical records. This means an individual can face having incorrect information in their medical history for years to come.

Any time an individual moves or switches doctors it becomes crucial to separate the victim’s data from the fraudster’s. In addition, when the hospital is left to absorb the costs of fraud, the mark still goes on the victim’s credit history. This can end up making getting loans, purchasing an automobile or landing a job extremely difficult.

To cut down on large dollar losses, many hospitals now require picture identification upon checking in for a procedure. The identification is then scanned and kept with the patient’s file. In addition, many medical facilities are gearing up to make the move to digitize patient records and keep them encoded in order to prevent pilfering.

Only certain parts of those records will be available to certain staff members and only a few will have complete access at all. Proponents feel this will greatly help deter medical record theft; however, others feel this will only be a temporary fix until thieves find the means to catch up. Either way, both hospitals and the population at large agree that the current state of the situation is simply unacceptable.

The chance that something of this nature so financially damaging can strike without warning has spurred many into opting for dependable identity theft programs. Like insurance, these services generally offer to cover certain costs that can arise during typical identity theft situations. This can be anything from lawyer’s fees to wages that may be lost during a lengthy credit restoration process. In addition, these services often provide credit monitoring as well, a service that keeps a sharp eye on an individual’s credit report so their time and energy can be focused on the more important aspects of life.

In general, credit card companies and other financial institutions are known to offer their own form of identity theft program as an incentive or perk to their customers; however, there are private companies that dedicate themselves expressly to providing elite identity theft services as well. Though there are hundreds of programs to choose from, the following are examples of the most well known identity theft programs:

Identity Guard- this service offers a basic four level credit monitoring service to match a budget of any size. Users have the opportunity to add on certain products and services and will have access to with their credit score as well.

Features include: Identity Theft Insurance of $20,000 with $250 deductible, fraud resolution and recovery services, free yearly credit reports, quarterly updates on credit monitoring

LifeLock- this system comprises of sending out ninety day fraud alerts to the three main credit bureaus on a regular basis. This prevents an individual having their information used for establishing new credit.

Features include: new fraud alerts every ninety days with Experian, TransUnion, Equifax and ChexSystems, fraud alerts, identity theft insurance of up to $1,000,000; fraud resolution and recovery services, free yearly credit reports, removal from pre approved credit card and junk mail lists, ISO 27001 certified information security standard, identity theft protection for children

Loud Siren- this system also comprises of sending out ninety day fraud alerts to the three main credit bureaus on a regular basis. This prevents an individual having their information used for establishing new credit.

Features include: new fraud alerts every ninety days with Experian, TransUnion and Equifax; fraud alerts, a current audit history to assist with credit disputes, a no deductible Identity Theft Insurance of up to 25,000 dollar, in addition to a $1,000,000 guarantee, fraud resolution and recovery services removal from pre approved credit card and junk mail lists; Loud Siren also inserts their number in a consumer’s credit report to head off potential fraud. Members are then alerted to inquiries in a discreet manner.

That’s because late fees on credit cards have become astronomical. If, for instance, you fail to pay your January credit card bill on time, you could be hit with a $39 late fee.

That’s in addition to the higher interest rates you may be charged for your delinquency. If you are late just one time in paying your bill, you could face an annual percentage rate of 30 percent or more. In addition, your credit card company could end up reporting the late payment to credit bureaus. The bureaus may make the fact known to your other credit card companies, which could result in higher interest rates on your other credit card bills. That could mean you’ll be paying hundreds of dollars more each year in interest charges.

However, if, over a 6 or 12-month period, you pay your bills on time, you could see your interest rate fall once again.

The reason why credit card companies raise rates is that they maintain that a customer who doesn’t pay on time represents a greater risk. According to the American Bankers Association, a late payment may be a sign that the customer will not be paying off his or her balance.

Meanwhile, consumer advocates are arguing that interest rates and late fees have soared to outrageous heights and that it’s time for regulators to take action. It’s unfair, they say, for one financial mistake to cause a customer possible financial ruin.

Customers who see their interest rates rise have the option of switching their balances to lower-interest cards. However, they may find that their card offers dry up when their credit scores worsen. Financial experts say that the bottom line is that consumers need to pay their credit card bills on time-or face hefty penalties.

Because it has recently become so widespread, many assume identity theft is a whole new phenomenon. However, identity theft has been practiced by the less than scrupulous throughout history. In the early times when personal records were scant, it was not unheard of for identity theft to be perpetrated for the gain of status, authority or even a stately inheritance. Even as the world became more organized, slipping into another identity to gain access to money, goods and benefits was still a rather easy task.

In the years after the death of Jesus Christ it was not uncommon for individuals to go around proclaiming to be the risen savior Himself. Of the many, one individual traveled the area of Arles, France with an attendant whom he called Mary close to the end of the sixth century. The two wandered about performing miracles and gaining much in the way of remuneration in addition to followers. Unfortunately, the two met an ambassador of the local Bishop who killed the perpetrator and chased off his companion.

Paulus Tigrinus is known for duping Pope Boniface IX and many other patriarchal officials into believing he was the Patriarch of Constantinople. He thereby was able to reap a number of benefits and rewards from royals of the highest court before being exposed as a fraud.

Because travel was rare and information did not spread as quickly as it does today, the death of a royal or other aristocrat often allowed fraudsters to impersonate officials in other parts of a country or region. Both Russian and French courts have a long history of identity thieves claiming to be officials of or heirs to the throne with forged documents. So convincing were some, several con men and women were able to convince a number of individuals, both rich and poor, to fund their fake courts and live well before moving off or being found out and punished thusly.

In early 1900, a German man by the name of Wilhelm Voigt pilfered his town’s municipal accounts by donning a discarded captain’s suit and working for months to amass a small brigade of military personnel. He then stormed the Kopenick meeting hall, arrested the mayor and absconded with an amount equal to approximately $300,000.

Among other con jobs, Joseph Weil spent part of his life pretending to be major investor in the Chicago area in the 1920’s. He used the swanky executive offices of banks which were very good for impressing well to do potential investors. He would then convince them to entrust him with large cash deposits for bogus land and business opportunities.

As time and technology evolves, there is a never ending battle to thwart identity thieves as they come up with new ways to work their old tricks. Luckily, the recent victimization of a large number of people has also created a massive amount of awareness. Many are taking steps to keep their information and their futures safe by shredding credit cards statements, never giving personal information over the phone, visiting only secured websites and opting for identity theft protection and credit report monitoring.

If, unfortunately, you do become a victim, there are ways that you can lessen your financial pain.
A poll conducted by Javelin Strategy and Research indicated that victims who discover the theft on their own tend to straighten out the situation much more quickly than those who don’t find out about the theft until their bank or a collection agency tells them about it. Those who discovered on their own that they were victims of identity theft tended to clear their names about 65 days after the fraud began, while those who found out the hard way had to wait about 104 days before the mess was straightened out.

Financial experts say it would be worth your while this year to keep a watchful eye on all your account balances, including credit card accounts, checking accounts, and savings accounts. That way, if thieves do strike, you should have an easier time recovering from it.

One wise strategy is to enroll in an online banking program. That way, you can receive e-mail alerts if there is a transaction of more than $100 posted to your credit account, or if there has been a charge posted from overseas. Likewise, Washington Mutual will e-mail you a message if there’s been a withdrawal on your account over a certain threshold amount.

If you enroll on Mint.com, you can enjoy daily monitoring of your checking, savings, credit card, and PayPal accounts. That way, you can keep track of deposits, fees, and other transactions without having to monitor multiple websites. Mint.com will also send you e-mail alerts if withdrawals and charges go over a certain amount. The site is also secure, since you cannot complete transactions via Mint.com. It is simply a means of monitoring what goes on in your accounts.

At the same time, even when one is vigilantly doing all the right things, thieves can still end up with a person’s private information. This has been proven with the recent cases of sensitive information being stolen via credit card processing companies merchants use to process check, credit and debit card transactions. Thieves have been known to pass background checks and surreptitiously do their work harvesting data from the inside. This means one will be wise to have their own identity theft monitoring service to go with their prevention.

For the most part, keeping sensitive information safe means never letting thieves get their hands on anything that will help them reach their goal. This means taking anything tangible that has a credit card number, social security number or other information and keeping it safe. This can mean destroying credit card statements with a shredder; or better yet, opting for paperless statements from credit card companies. Securing mail at the mailbox is a must these days. No longer should an individual mail bills from their own home mailbox lest they risk having their bills and checks stolen. Opting for a post office box with a lock in a secure location is a best bet.

Keeping a social security number safe means never carrying the card personally. Thieves love getting their hands on this special piece of property because it makes it much easier to open accounts both online and in person. A social security number should be written or recorded nowhere, especially on checks. Because of the vast number of bogus online impostors, legitimate companies now refrain from asking for social security numbers and bank account information in emails.

Many times, insurance companies and other services will provide or sell customer information to third parties. It is a wise idea to ask if this is a common practice with companies requiring this type of information. In general, most consumers have an option to opt out of having their information shared or sold.

When transacting business online, one must always be sure to use secure websites only. Fraudsters are well known for using websites that look familiar and have a familiar name; however, upon closer examination, one will find the website posted in the search bar has an extra or a missing letter in the name. A secure website means the little lock symbol will appear in the lower right hand corner of the computer screen. When in doubt, it is better to avoid or halt all transactions immediately.

If there is one place where suspicious activity will show up right away once an individual has become a victim of fraud, it will be on their credit report. It is for this reason that an individual should monitor their report on a fairly consistent basis. For a small monthly, quarterly or yearly fee, a credit monitoring service will alert an individual immediately of any changes, such as credit inquiries or new accounts. It is well known that the sooner an individual is alerted to a discrepancy on their record, the sooner they can swing into action and put a stop to any further damage. It may even be possible to catch the fraudster red handed and stop them from victimizing others.

Will Smith - Identity thief Carlos Lomax opened fourteen credit accounts using Will Smith’s legal name, Willard C. Smith. Over $30,000 dollars was charged to the bogus accounts. Lomax was earlier convicted of using the identity of Atlanta Hawks basketball player Steve Smith to rack up $81,000 worth of charges on a credit card account.

Michael Bloomberg - The New York City Mayor found himself the victim of identity theft when thieves Odalis Bostic and Charles Nelson absconded with $10,000 dollars using bogus checks. The pair was then nabbed after an attempt to cash a check in the amount of $400,000.

Tiger Woods - Con man Anthony Lemar Taylor fleeced golf great Tiger Woods for $50,000 worth of goods using nearly a dozen different lines of credit with different department stores. Though he did not resemble Woods in any way, the identity thief was able to carry out his crimes by using the athlete’s legal first name of Eldrick rather than Tiger.

Ruben Studdard - Ronald W. Edwards, Studdard’s ex manager and public relations director, used the singer’s name and personal information to take out credit cards, later maxing them to the tune of well over $100,000. Another $150,000 worth of checks was written for goods and services as well. Additional stolen checks in the amount of $25,000 were also deposited into Edwards’ bank account.

Barry Bonds - The big league baseball player had his identity stolen by Jason Keys, an individual working as an employee of a company that shreds sensitive information and documents for celebrities, medical offices and government organizations. Keys then applied for a credit card using Bonds’ name and social security number.

Many other celebrities, from Paris Hilton to Oprah Winfrey have been victims of identity theft. One of the biggest cases of identity theft was performed by Abraham Abdullah, a busboy working at a swanky New York restaurant.

Abdullah picked his victims from a list of Forbes 400 Richest list and harvested credit card information from his place of work. Victims included chief executives of major companies and well known personalities such as Martha Stewart, Ted Turner and even Ross Perot. Posing as his victims, Abdullah skillfully gathered more information using a complex network of cell phones and library computers. For six months, the man was able to approach banks and brokerage houses and easily remove millions from the bank accounts of many affluent victims. As is the case with many identity thieves, Abdullah was nabbed when he got greedy and tried to move ten million dollars out of the account of Siebel Systems founder, Thomas Siebel.