Take David Hernandez, for instance, who can trace his identity theft case back to his military deployment in Japan. Upon returning home to Chicago from his service overseas, David received a billing notice for the repayment of a $4,500 loan that had been fraudulently borrowed in his name. He also had a credit record showing over 20 fraudulent phone, credit and medical accounts that were unfamiliar to David, and was being contacted for back child support he did not owe. In addition, David discovered outstanding arrest warrants in the state of Illinois from crimes that were committed in his name while he was deployed. David’s nightmare climaxed when his wages were garnished as a result of this identity theft.

David sought the help of an identity theft protection and resolution company, which discovered even more crimes against his identity. They revealed that his identity was probably compromised as a direct result of his military service and the frequent disclosure of his identifying information throughout his active duty. Personal details, such as his Social Security number, were often posted in public view, and were widely used for military identification. In addition to publicly posted transfer orders and bunk assignments, government-issued military ID cards display Social Security numbers directly on the cards.

After time spent dedicating their lives to serving their country, the last thing our military veterans should have to face is the aftermath of identity theft. While protocol and military procedures may make soldiers more vulnerable, there are a few things that individuals can do to protect themselves from identity theft, particularly preceeding deployment overseas:

• Place an active duty alert on your credit files. This free alert is similar to a fraud alert, in that it is meant to avert thieves from opening fraudulent credit accounts in your name, but lasts for up to a year without renewals.
• Set up a Limited Power of Attorney with a trusted individual before you depart, so that your financial affairs will be taken care of in your absence.
• Closely guard your military ID and any other documents containing your personal information, especially your Social Security number.
• Monitor your accounts for suspicious activity online as often as possible, but never from a connection that may not be secure. It may be more convenient to invest in a service that monitors this activity on your behalf.
• Have your mail routed to a P.O. box that you check immediately upon your arrival home.

It is an unfortunate reality that our nation’s service men and women are especially vulnerable to the country’s fastest-growing crime, and taking measures to prevent it are key for the protection of our military personnel.

Does the thought of a background check send you into cold sweats? Pacing the floor, and wondering what kinds of skeletons the checker might unearth from your metaphorical closet? Most likely, not. For most upstanding citizens, we expect to know exactly what’s going to be on our background check – after all, we were there – and we don’t think twice about signing off on access to our personal histories. No one considers a background check to be like a medical test, where you might or might not find a malignant tumor. Even if you haven’t always followed the rules, you would know what kinds of things might show up on your background check, right?

Wrong.

Unfortunately, many background checks can be a work of fiction as opposed to a biographical history, and the main character might not even know. According to a study by a consumer interest group, almost 80% of background reports contain serious errors or inaccurate information. Some of these mistakes may come from clerical errors – if your name is Katie Johnson or Robert Smith, I’m guessing you’re no stranger to such mix-ups. Other inaccuracies, however, can be a result of identity theft. Either way, these errors can cost you – big time.

For instance, what if the “other” Katie Johnson had received numerous traffic violations that got attributed incorrectly, and the real Katie didn’t discover it until a trucking company showed her why she didn’t get the job? Or if the real Robert Smith applied for a position at a kindergarten, only to be escorted off school grounds due to an erroneous child pornography charge that was found on his background check?

These are real possibilities in this age of technology (computers are not infallible, as we’ve all learned) and rising identity theft. So what are we all to do?

As always, vigilance is key. Being proactive about your personal history is the best way to ensure its accuracy. If you’ve already reviewed all of the components of your background check, you won’t be blind-sided when an employer asks to see it. There are a variety of different checks that employers may perform to view your history, depending on the nature of the job, but the big ones include credit reports, criminal records, court documents, driving records, wants and warrants, and sex offender registries. These can be easily obtained through specialty services designed to allow you complete access to your own history. Don’t be fooled by cheap “instant” reports that don’t require you to verify your identity – make sure that you use a trusted provider who is aiming to provide your report to you and only you, instead of to nosy neighbors and ex-girlfriends. Additionally, there are many Specialty Consumer Reports that are available to you, for free, if you dig a little.

After you’ve looked over all of your reports, you can set about fixing any errors – before they get the chance to reach the eyes of a judgmental employer.

Hold your mail
A stack of newspapers at your front door or an overflowing mailbox are a perfect indication to onlookers that you are out of town, giving them an indication that your home is exposed to theft. Also, sensitive documents, such as bills and credit card offers, are left vulnerable. Play it safe and have your mail held at the post office, where you can pick it up upon your arrival home. Also, specify a generic “postal hold” as opposed to a “vacation hold,” so as to not tip off local post office employees to your absence.

Secure records
It is always important to keep your sensitive documents (such as account statements, insurance paperwork, birth certificates and family medical records) in a locked safe or file cabinet, but it’s even more important when you’ll be leaving your home for an extended period. In addition to opportunistic thieves who might break into your vacated home, you also need to protect from anyone who has permitted access. While you may trust your pet-sitter or housekeeper, the lure of your personal information may be too much to resist. According to a recent study, 13% of identity theft victims knew (and probably trusted) the individual who misused their identities.

Consolidate your cards
Clear your wallet of anything that is not absolutely necessary before your trip. A good rule of thumb is to carry one credit card and one ATM card. Try to avoid bringing a debit card, because in case of theft, the money is much more difficult to reclaim. Also, do not bring your checkbook unless you know you’ll need it – if a thief were to get access to your account and routing numbers, the damage could follow you for a long time.

Protect your wallet
Pickpockets have been around for centuries, but these days their interest in your wallet or purse involves much more than the cash inside. If someone gets hold of your identification, credit cards and insurance cards, you’re at risk for losing much more than a few dollars. Protect your important effects, including your passport, by using an under-the-shirt money belt or a wallet chain. Keep an eye out for stealthy pickpockets, especially in tourist centers.

Safeguard your online encounters
Often, travelers will use their laptops to kill time in airports and Internet cafés. Use caution when signing on to these open connections, and do not enter any unencrypted personal information. Be aware of your surroundings and make sure that no wandering eyes have visual access to your computer screen as you perform your business.

Monitor activity
While you are away, especially on extended trips, the last thing you probably want to be doing is checking your bank accounts and insurance records. Be sure and notify all entities of your absence before you go, so that they are aware you’ll be using your cards out of town. It is cases like these that can make an identity theft protection company worth the cost, so that they can monitor all of your accounts for any unusual activity. After your vacation is over, then, you’ll still have the luxury of knowing your identity is safe.

Have a nice trip
These tips are not meant to suggest that you should spend your hard-earned vacation by doing anything less than having a good time. By following these simple suggestions before your trip and always maintaining a healthy awareness of your surroundings and belongings, you will be able to truly relax.

Didn’t receive a letter? Don’t even live in Virginia? Don’t care?

Well, maybe not this time, but chances are that you will be a victim of a data breach at least once in your lifetime, whether you are aware of it or not. It seems that nearly every day there is a new story about a data breach, in which consumers’ personal information is stolen from a company or entity with which they’ve done business. Data breaches can be initiated by a variety of thieves, including internal employees and hackers, who most often proceed to use the collected data for fraudulent purposes and identity theft. Individual identities may then be bought and sold several times, leading to a path of identity theft destruction for the often unknowing victims of the breach.

According to the Privacy Rights Clearinghouse, which has been chronicling data breaches of all sizes since 2005, well over 261 million records have been breached in the last 4 ½ years. Check out the chronology, and be prepared to find yourself in panic mode. The list, which breaks down all large- and small-scale data breaches that are reported (note that some companies do not reveal or even discover breaches in their data), shows virtually a new breach on a daily basis. These breaches list entities such as hospitals, government branches, schools, payment processors, credit card companies, banks, and hundreds of other private companies.

Scary stuff, but what are you to do? Unfortunately, there is not a whole lot that the average consumer can do to prevent him or herself from becoming a victim of a data breach. Sharing our personal information has become a vital part of life, no matter who you are. From the moment you were born, hospitals have collected records on you. Once you receive any kind of identification card, your state and local government begins housing files full of your data. When you go to school, get a job, apply for a credit card… The list goes on and on. Every time you give an entity your information, you expect that they will house it responsibly and safely.

However, no matter how many precautions companies take to ensure that your information does not fall into the wrong hands, there are always ways for individuals to gain access. Sometimes current or ex-employees are able to collect the data on the way out the door. Other times, hackers make their way into the system to quickly sneak off with the sensitive data. Another way information often passes into the wrong hands is through lost or stolen laptops. When these unencrypted devices containing the records of all of a company’s employees and clients leave the office, they are at great risk to be picked up by the wrong hands. In fact, a recent study conducted by the Ponemon Institute on behalf of Intel showed that a stolen laptop could cost a company over $115K, 80% of which is breach damages.

In the wake of such a catastrophe, breached companies will often try to set things right for their victims by offering identity theft protection. Most of the time, this “protection” consists mainly of credit monitoring, which is only a small part of identity theft. Many identity thieves are interested in using their victims’ personal information for far more damaging purposes, such as illegal employment, fraudulent medical services, committing crimes, and much more. If you become a victim of a security breach, consider all aspects of your identity that are now put at risk, and be sure to monitor all of your personal information to guarantee that it does not fall into the wrong hands. This can be an overwhelming task, however, so there are also a variety of services that do this hard work for you, and are often worth the investment.

While technology continues to evolve, it would be optimistic to believe that data breaches will someday become preventable. Also, legislation is emerging to protect consumers from security breaches, including a set of “Red Flag Rules” that force certain companies to have procedures in place to prevent identity theft and act quickly in the case of a breach. However, the enactment of these rules continues to get pushed back (originally scheduled for last November, then this May, and now August), as companies struggle with compliance. Regardless of any rules or technological advancements, however, there will always be shady individuals that want to profit off of your good name, we can only assume that this risk is going to stick around for quite some time.

Not so hilarious, however, is the real-life scam that is being played out currently. According to the Boston Globe, at least 800 bank customers have been the victims of a similar scheme utilized by fraudulent hackers. In this situation, customers are finding tiny unauthorized charges to the bank accounts and credit cards, usually ranging between 21 cents and 48 cents and show up on statements as either “Adele Services” or “GFDL.”

Authorities have not determined the severity of this scam or located any suspects, but they do have some theories on where the scam is headed.

One theory is that, similar to the “Office Space” gang, these hackers have collected credit card numbers to gradually take small sums of money out of unknowing customers’ accounts over a long period of time. These hackers, authorities speculate, do this in the hopes that the account-holders either fail to notice the small charges or do not bother fighting for the tiny amounts. For individual customers, the missing funds may not amount to enough to cause concern, but for the hackers that target hundreds – or perhaps thousands – of customers, this scheme could develop into a very lucrative business.

The other theory that is being touted by financial experts and authorities is that the thieves are testing credit card numbers for validity, with hopes to use them for a much larger heist later. The small charges may be virtually unnoticeable now, but the large charges that may result later could be much more damaging.

The first of these scams emerged this past winter, and authorities are still “waiting for the other shoe to drop” in terms of these hackers’ final goals. However, as always, it’s important to be proactive about protecting your identity and finances. Use a secure computer to check your accounts online frequently, and carefully scan all statements against your own records and receipts to identify even the smallest discrepancy. Alert your bank to fraudulent charges, no matter how minute, and cancel all cards you think may have been infiltrated by an unauthorized entity.

There has been a rash of data breaches in the past year that have targeted educational institutions. For instance, the University of Florida was hit a whopping three times with large-scale security breaches in a matter of only three months, the most recent of which exposed the private details of nearly 100,000 students.

While the large-scale data breaches make the headlines and gain national attention, these information leaks can be just as damaging to individuals in local school districts. For instance, a private contractor for a school district in Nashville, Tenn. exposed the sensitive data of 18,000 students and 6,000 parents on an unsecured web server.  As they sort out the details of the breach, the school district has responded by calling all affected individuals and providing free identity theft protection.

It’s not just the students and their parents that have reason to be concern. School employees are also at risk, especially since educators generally must provide a larger-than-average amount of personal details to their employers. While this personal disclosure is vital in keeping students safe from any sketchy teachers, it also means that school employees need to keep a close eye on the security of their identities, lest their information fall into the wrong hands. Such was the unfortunate case for 3,400 employees in Irving Independent School District, of Texas. According to school officials, identity thieves were able to obtain an old copy of a benefits report containing names and social security numbers, and subsequently used the unknowing employees’ identities to swindle thousands of dollars in merchandise.

School is supposed to be a safe haven, so what are students, parents and educators supposed to do?

First off, teach children at an early age about the importance of their social security number and keeping it private.  Once a student learns his or her social security number, instruct him or her to keep it a closely guarded secret. Teach children skepticism regarding the sharing of any personal information, such as home addresses.

Also, it’s important for schools to abolish the practice of using social security numbers as student identification. Printing the social security numbers of students and staff on everything from ID badges to transcripts is just asking for trouble. Be sure and make yourself familiar with the laws regarding this issue.  Any documents that require a social security number should be treated as highly sensitive and confidential. The same old standard identity theft prevention measures still apply, including shredding or carefully filing documents containing sensitive data.

Additionally, some schools and school districts are finding value in providing identity theft protection as an employee benefit. Perhaps in light of the Irving incident, a number of Texas school districts, including Arlington Independent School District, have begun offering identity theft protection packages like ID Watchdog to their employees alongside traditional benefits such as health insurance and dental. For many educational institutions, this is a better option than dealing with the damage control that may result from an unavoidable data breach.

For a small fee ($25 according to MSNBC) deposited into his PayPal account, anyone can gain access to these records to use for whatever they please.  Despite an alleged brief disclaimer at the end of the video, in which the seller mentions that the records should not be used for “anything illegal,” the stolen records themselves are illegal merchandise.  It’s probably a fair bet that this crafty marketing genius will sell the same records to multiple people, in which case some innocent folks will have a web of destruction on their hands as a result of an amateur YouTube post.

As shocking as it may be that someone had the gall to post such a blatant attempt at profiting from identity theft, this kind of thing happens much more often than you may think.  It only takes a small amount of digging to find stolen records for sale all over the Internet.  In an age of electronic anonymity, it is becoming increasingly easy to buy and sell the private data of unknowing victims on the World Wide Web.

According to a recent article released by the International Society of Automation (ISA), in the last three months alone, Internet fraud complaints have jumped up 50%.  According to Justin Yurek, president of identity theft protection company ID Watchdog, this number would be substantially higher if not for the vast majority of Internet fraud going unreported.  Black-market Internet sites abound, at which criminals can trade thousands of records, making this one YouTuber’s “commercial” seem like small potatoes.

The MSNBC article outlines some great tips for protecting yourself from the perils of identity theft, but still leaves us wondering who might be selling our identities from the front seat of his car.  Scary stuff, indeed.

Besides the obvious implications, like job losses and pay cuts, there are other things that come out of a recession, like rising crime.

What are desperate people going to do when they run out of cash?  When they can’t get the mortgage or loan they so desperately need?  When they need a life-saving medical procedure but do not have health insurance?  Unfortunately, “in these economic times,” often these individuals are going to take it from someone else.

Identity thieves may use any variety of methods to obtain your personal information, be it through a traditional wallet theft, a security breach through a company that maintains your personal files, or hacking into your personal computer.  While it is disturbing to think of a stranger obtaining your private information, the really scary thing is that many identity thieves have personal relationships with their victims.  Identity thieves can then go on to use the stolen information to obtain loans and credit lines, commit tax fraud, and even obtain medical care through their victims’ insurance policy.

Identity theft is not a new crime, but it has gone up in recent years, and many experts blame this on the Recession.
Mark Foster, director of education for Credit Counseling of Arkansas, blames the rise in identity theft on a combination of the low prosecution rates coupled with the credit crisis.

“In tougher economic times,” he says.  “Crimes involving money become more commonplace.”

As always, it’s important to keep a close watch on all of your personal information that is “out there.”  Be sure and take advantage of your right to a free credit report every year, and pay attention to any changes in data that you didn’t make.  Keep a close eye on any credit card and bank accounts that you have open, and close any that you don’t use.  Of course, do not share your social security number unless absolutely necessary, and keep your social security card, birth certificate, passport, and other identifying documents in a safe place.

Unfortunately, this Recession is affecting us all, and while we deal with the pain of tightening our purse-strings and managing our dwindling savings accounts, we also have to pay attention to the heightening risk of identity theft.

Of course, many potential employers want a great deal of your background information before they will even consider hiring you.  They want to make sure you are who you say you are, and to perform background checks to ensure that there is nothing in your past that could hinder your ability to be a good employee.  So, after sending out dozens of résumés and applications, you may become lax about the amount of information you divulge to your potential employers.  You want my two previous addresses?  Ok.  My social security number?  Reasonable.  You want my mother’s maiden name?  Now, hold on a second…

In all seriousness, it’s very important to watch what you send out to anyone, especially over the Internet.  Also, it’s wise to refrain from sharing your social security number with a company until absolutely necessary – never list that or drivers’ license number on your résumé. Using job-searching web sites such as Careerbuilder and Monster are not usually a bad idea, but you have to be wary of scams that might be present; it’s easy for imposters to masquerade as reputable companies to collect sensitive information from eager job-searchers.  CNN recently released a handy set of tips for detecting scams in job postings, including the following:

• Don’t fall for any offers that may be “too good to be true.”  They probably are.
• Don’t be fooled by an employer that declines to interview you – either by phone or in person.  A legitimate employer will want to meet you.
• Be skeptical of any employer requesting a fee from you.  You should be collecting payment from them, not the other way around.
• Make sure that the employer can fully explain the position available.  If they are vague about the job responsibilities and benefits, it is most likely a scam.

In addition to job-search scams, there is also the potential that an application for a legitimate job may fall into the wrong hands.  Recently, a woman in Tennessee went dumpster-diving outside a deli chain and came up with hundreds of applications containing job-searchers’ identifying information.  Enough information, in fact, for the woman to go on spending sprees with their good credit and wrack up thousands of dollars in purchases.  So what are you to do?   It is the employer’s responsibility to shred all unanswered applications, but it’s possible that they could skip this crucial step.  For that reason, it’s a good idea to leave your social security number off of any job applications.  Even if they ask for it, they will often not need or use it at least until finalists for the position are selected.  If a potential employer asks for your social security number, speak with a manager and ask if it would be acceptable to refrain from sharing this piece of information until you’re further along in the process.  At worst, he or she can tell you it’s a required element and you can decide whether or not you trust the employer’s procedures and that the job is worth the risk.  At best, perhaps the manager will admire your responsible foresight and will offer you the job on the spot.

It is unfortunate that with all of the worries that come along with unemployment, identity theft is one of them.  However, it is best to have your guard up ahead of time and keep a tight lock on your information, lest it fall into the wrong hands.  The last thing you need is to be dealing with the repercussions of a stolen identity while you continue to look for a legitimate job.

For many people, the thought of tax season drives chills up their spine.  To some, the annual process of filing with the IRS is a slight annoyance, and for others, it can be a complex process worth dreading every year.  Regardless, when most people drop their tax forms in the mailbox, or press the “send” button on their computer, they wipe their hands of all W-4’s and 1040’s, happy to have the ordeal completed for the year.

But what if your sense of relief was shattered by the detection of an identity theft?  For many Americans, this discovery is all too real at tax time.

Employment identity theft, in which thieves use someone else’s social security number to gain employment, is a growing trend.  Many victims of identity theft discover the crime while filling out their taxes, and learn that their reported income is much higher than what they actually made.  Although this seems like a rare occurrence, the FTC reported a 30% rise in employment identity theft victims in 2008.

Another growing trend is for criminals to file for taxes under a stolen identity, and receive the refund check before the victim even has a chance to file. So, if you’re doing your taxes this late in the game, the chance of becoming a victim might be greater.  Sometimes, however, doing them early isn’t even a good prevention measure.  Take, Michael Brown, of Millington, Tenn., who filed his taxes with a preparer back in early February and expected to receive a $4,500 refund.  However, the father of five was awakened between night shifts to learn that someone else had already filed taxes in his name.

Another individual, Alan Young of Nashport, Ohio, filed his income taxes and subsequently received an e-mail from the IRS that his return was already filed and the refund had been awarded to a man in Miami, Fla.  Young spent several days absorbed in phone calls with the IRS, receiving various answers every time he called, and eventually enlisted the services of a private investigator.  Young is still working through his situation – turning the Tax Season ordeal into a mess he could never have predicted.

What can you do to keep yourself safe?  Of course, the general identity theft prevention measures still apply.  Keeping your personal information private is always a good practice, as is mailing sensitive documents from a locked mailbox or directly from the post office.  Also, if you file your taxes online, it’s imperative to have a firewall installed on your home computer, to avoid letting hackers access your information as you input it.  If you choose to have a tax preparer help you with your filing, make sure to check the reputation of the company before handing over your private data.  If it is a company that you’ve never heard of, or they’re set up in a temporary location, be sure and get their credentials.  Lastly, remember that the IRS will never call you over the phone or e-mail you to solicit information – be wary of any such communication.

Taxes are complicated enough, so be sure to avoid extra headaches by taking prevention measures against identity theft.