Credit Cards

One of the most dangerous forms of identity theft is the use of credit cards. It also is the most talked about form of identity theft and the one that is most reported. The United States Federal Trade Commission (FTC) estimates that 67 percent of victims report that one or more of their credit card accounts are misused and that 85 percent of all identity theft involved misuse of some type of existing financial account.

Just because a person does not use a credit card or refuses to give out any information about their accounts either over the phone or on line, does not keep them safe from credit card identity theft. The FTC reports that 8 percent of credit card identity theft stems from accounts opened fraudulently using some else's personal information.

Federal Trade Commission

The other bad news according to the FTC is that identity thefts are expected to rise considerably over the next decade. The good news is that Federal regulators are taking the crime seriously and taking steps to increase public awareness and education about credit card identity theft while the penalties for the crime have been toughened. In fact, the FTC's web site contains extensive resources and information for those wishing to educate themselves on the latest identity fraud information.

One of the most important bits of information to know is that identity thieves can steal or create credit card information without the victim even knowing. As late as the 1970s, some credit card issuers were sending active cards through the mail to people who had not even requested them. A thief who steals someone's mail, or sifts through their trash, can find applications for "pre-approved" credit accounts and have them activated.

Vigilance

The best way to minimize the risk of having credit card information stolen and used is to tear up or shred all such applications before discarding them. For existing accounts, check the statements each month and report any charges that seem out of place. Most banks and credit card issuers these days will not hold a person responsible for fraudulent charged if reported promptly.

Some credit card companies now are advertising their protection policies as an inducement to attract customers. Customers should talk to customer service representatives of their credit card companies to find out what their policy includes. In the competitive financial services market, any company not willing to offer an aggressive policy to protect its customers will find others eager to take the business.