Identity theft occurs when someone else assumes your identity and uses it for his or her own purposes. They can withdraw money from a bank account, take out loans or credit cards in the stolen name, and can, in the worst-case scenario, even commit crimes. In fact, identity theft wasn’t a federal crime until 1998, after several high profile cases occurred where people lost thousands of dollars and could do nothing to stop the criminals.

Thieves can steal information through numerous ways. They might watch as someone enters a pin number or social security number. They can go through garbage and use old mail to gain access to accounts or open new credit cards. They might even steal information from your computer, either through directly breaking its security or by putting up fake websites to get someone to enter sensitive information. Needless to say, there are numerous dangers.

However, there are strong steps to take to protect yourself. Of course, keeping up security will help prevent identity thieves from getting the targeted information to begin with. One should shred one’s mail, exercise caution around ATMs and only give out one’s social security number when absolutely necessary. If website looks even remotely suspicious, don’t use it.

Finally, one can keep track of one’s credit history for any strange occurrences. One can get a free credit report, which details the various credit actions taken and can compare them to ones actual actions. If someone else is using your identity, there will be discrepancies. In addition, numerous companies offer a free credit score. Any sharp changes in the free credit score can signal a major problem. Finally, most companies that offer a free credit score also offer daily reports on changes and identity theft services, which can increase your protection.