Watching Out For Identity Theft

In short, while almost all of us could, in theory, fall victim to identity theft, common-sense safeguarding of your personal information, and consistent vigilance about your finance, can lower the odds or limit the damage.

"People need to be vigilant for early signs," says the FTC's Lefkovitz. "Review bank statements, credit card statements, check your credit report once a year. Even if something does happen, catch it early."

How to Respond to Identity Theft

Untangling a case of identity theft can be difficult — but acting quickly helps. If you believe you have been victim of an identity theft, the Federal Trade Commission recommends taking the following steps:

Contact any of the three major credit bureaus — Equifax, Experian and Trans Union — and have them place an alert on your file. The alert will be circulated among the bureaus and should halt new changes to your accounts.

File a police report. Some creditors might require one as proof that a crime has taken place.

Close accounts that have been used for suspicious activity.

File a complaint with the FTC, which keeps a central list of cases, and fill out an identity theft affidavit, for use in your future claims.