Identity theft: The new face of fraud; identity theft is on the rise, but there are steps to protect yourself.

• Author: Nerland, Brian

The bad guys have always been able to steal your wallet, your car or your money. Now they've gone one better and gotten access to something even more lucrative: yourself.

How can someone steal "you?" By stealing your identity. Losses associated with this new face of fraud are in the billions of dollars annually. Statistics on identity theft are hard to come by, with estimates ranging as high as 700,000 cases a year. Betsy Broder, the assistant director for planning and information of the Federal Trade Commission, said the commission received 86,000 complaints of identity theft last year.

WHAT IS IDENTITY THEFT?

Identity theft occurs when someone steals your personal information, such as a name, Social Security number or date of birth without your knowledge and uses it to commit fraud or theft. Armed with this information, thieves have ample information to control bank accounts, compromise retirement accounts and credit cards, and establish new bank accounts and debt in the victim's name. The really unfortunate part is that these fraudulent accounts are not usually discovered until the account becomes delinquent and the victim is notified through collection efforts. By then, of course, the thieves have moved on to their next victim, leaving the last victim to pick up the pieces.

Identity thieves can even pretend to be the victim by diverting the victim's mail to their own address, and assume control of the victim's bank account or credit cards. In fact, the problem is often not identified until the account becomes delinquent or an overdraft occurs. Some particularly clever (and daring) ID thieves have even added themselves to an account as an "authorized user" or signer.

But there's more to the ID thief's bag of tricks. Some have started establishing cellular phone service and public utilities in the victim's name. This helps the thief authenticate the information provided on a credit or deposit application.

The key to all of their trickery is to get your personal information. They do this in relatively simple ways, such as finding or stealing a receipt. Sometimes they use an inside accomplice who has access to proprietary data. Telemarketing schemes are sometimes used to trick unsuspecting victims into revealing personal and account information. Some even resort to going through an institution's or person's garbage looking for discarded credit card offers or other information.

Thankfully, both the government and the banking industry have...