Maine’s Department of Professional and Financial Regulation warned
consumers late last year that the holiday shopping season and the rush
to redeem gift cards or use cash gifts in the New Year make this a
prime time for identify theft.

Acting Commissioner Lloyd P. LaFountain III highlighted troubling
statistics and a recent national study to emphasize that identity theft
continues to be a serious and escalating problem; one that poses
substantial hardships for victims.

 According to the Federal Trade Commission, 8.3 million Americans were victims of identity theft in 2005.

Every year, victims struggle to recoup financial losses and repair the damage to their credit standing.

The National Association of Insurance Commissioners (NAIC) recently
surveyed 500 adults to obtain information about the prevalence and
impact of identity theft. 

Conducted from Nov. 16 to 22, 2007, the survey found 57 percent of U.S.
adults are concerned about being a victim of identity theft during the
holiday season and 66 percent believe they are more at risk when making
online purchases.  Additionally, the survey found:

 • 32 percent said they were ID theft victims or knew someone who
had been victimized in the past five years. Of those consumers, 46
percent said their identity theft exceeded $1,000 and 42 percent said
it took three months or longer to resolve the problem.

 • If seeking insurance coverage for identity theft, 38 percent of
respondents said they would look to insurance companies, 34 percent
said they would look to credit card companies, and 27 percent said they
would look to banks.

 “Damage caused by identity theft can not only be financially
devastating, but it can monopolize a victim’s time and
energy. Repairing credit reports and taking all of the other
necessary steps in the aftermath of ID theft can be a heavy burden,”
LaFountain said.

 Understanding the Basics of Identity Theft

Identity theft, sometimes referred to as identity fraud, is a crime
that involves the unauthorized use of someone’s personal information
such as name, Social Security number, credit card number or other
financial account information to commit fraud or other
crimes. Identity theft occurs in many forms, such as someone using
stolen personal information to apply for loans or purchase items using
a credit card number, along with many other fraudulent activities.

The Maine Department of Professional and Financial Regulation offers
the following tips to help consumers protect their identity.

Know what’s in your wallet.  Avoid carrying a Social Security
number. It provides access to personal information, and should be
stored in a safe place. Carry only needed credit cards. This
practice limits access to accounts in the event of a lost or stolen
purse or wallet. Periodically photocopy cards and keep a record of the
customer service phone numbers associated with financial accounts to
speed up the process of canceling credit cards, when necessary.

 Shred, Shred, Shred. Open all mail and read carefully, even the
items that appear to be junk mail could contain personal offers.  

Items with personal information, such as pre-approved credit offers,
bank statements or utility bills should be shredded before being
discarded.

 Be suspicious of solicitors.  Never give out personal
information or a Social Security number to people unless their
trustworthiness is known.

This advice applies to sharing information over the phone, in-store or online.

 Monitor revolving accounts and credit score.  Check bank,
credit card and other financial account information along with credit
scores at least once a year to reduce the risk of unauthorized charges
or credit applications.

If a suspicious charge is suspected, immediate contact should be made
with financial institutions. A free credit report, without
obligation, is available once a year online at
www.annualcreditreport.com.    

 Address unauthorized actions. If a new account is opened in
someone’s name without permission, the consumer should immediately
contact one of the three major credit bureaus – Equifax, Experian or
TransUnion – and ask that a “fraud alert” be activated. Once the alert
is posted, the other two bureaus will be notified, and creditors will
be required to contact the consumer directly before opening new
accounts or making changes to existing accounts.

Additionally, a police report should be filed and a complaint submitted to the Federal Trade Commission

 Surf the Internet Safely.  Millions of people are online at
any given time; some are thieves seeking new ID theft
victims. These hackers collect information from unsuspecting
“pop-ups,” surfing unsecured networks or hacking into retail Web sites.


Consumers should always use secured networks, and frequently update
firewall protections on their computer. Personal information
should be posted rarely and with caution on networking sites.

 Consider identity theft insurance. Several insurance companies
offer identity theft insurance.  It typically provides coverage
for the cost of reclaiming a consumer’s financial identity, such as the
expenses of placing phone calls, making copies, mailing documents,
taking time off from work without pay and hiring an attorney.

As with any insurance policy, consumers should fully understand what is
being purchasing and they should compare prices, coverages and
deductibles among multiple insurers.