You’ve probably heard of identity theft -which occurs when someone steals your personal information -but you may not be aware of the more serious crime of identity fraud. Identity fraud occurs when someone uses that stolen information to commit a crime or fraud in your name.

The unfortunate thing about Identity Theft or Identity Fraud is that it can often go undetected for years, especially if you never have to use your credit to get a new credit card or loan. Early detection is key to keep the thieves from doing too much damage to your credit.

According to Javelin 2010 Identity Theft Report:

• 11.1 million adults were victims of identity theft in 2009
• The total fraud amount was $54 billion
• The average victim spent 21 hours and $373 out of pocket resolving the crime
• 4.8% of the population was a victim of identity fraud in 2009
• 13% of identity fraud crimes were committed by someone the victim knew

How can you Protect your Identity?

• Always read your bank and credit card statements. Report anything suspicious to your bank or credit card issuer – even a charge as little as a penny.
• Check your credit report regularly. If you’re not monitoring your credit report, new account fraud could go undetected for months, even years.
• Follow up on calls and letters about accounts you didn’t open. These are often warning signs of identity theft.
• Shred documents that have your sensitive personal and financial information on it. Avoid carrying your Social Security card with you.

Learn the Warning Signs of Identity Theft

• Billing statements for credit cards you never applied for
• Your credit card bill doesn’t come at all
• Your billing statement includes charges you didn’t make
• Your credit card is unexpectedly declined for being over the limit
• Unexpectedly denied for a credit card or loan

 Test Your Knowledge – Take the Identity Theft Face Off Quiz

If you believe you may have been a victim of Identity Theft or Fraud many Homeowners policies now provide coverage for Identity Theft losses and professional counselors to assist you.  Learn the steps you need to take to protect and restore your credit.