Watching Out For Identity Theft

Some identity theft uses electronic means. This includes the recent trend toward "phishing," the on-line scam in which thieves e-mail phony statements purporting to be from financial institutions, asking for account information. But other criminals use the old-fashioned method of "dumpster diving" to collect financial information by rooting around in trash.

Increasingly, say experts, thieves sift through garbage in business locations, rather than outside homes. "If I go out behind the insurance agent's office, or a mortgage broker's, how much info could I get?" asks Foley. "This is where the business side needs to step up. A lot of companies have good intentions they don't necessarily follow up on."

Moreover, with personal data spread around so commonly among businesses and employers, it is often hard to trace the source of the stolen data. "The victims are not always in the best position to know how their information has been obtained," notes Naomi Lefkovitz, an attorney in the FTC's anti-identity theft division.

Protecting Against ID Theft

The FTC serves as a clearinghouse for identity theft reports, and recommends you file a complaint with the bureau if you think you are the victim of such a crime — in addition to immediately contacting your financial institutions, one of the three major credit agencies and the police (see below).

In 2003, the FTC received 214,905 complaints of identity theft — up 33 percent from the 161,836 it recorded in 2002. As the numbers show, more Americans are taking action about identity theft, but the problem is not abating.