What is identity theft?

According to the Federal Trade Commission, identity theft occurs when personal information is used, without an individual's permission, to commit fraud.

Identity theft is very serious. It harms not only the victims who suffer the most but also the companies (e.g., banks, credit unions, stores, medical services) that can't recover the monies, and consumers who ultimately bear the increased costs. Victims of identity theft spend months, sometimes years - and possibly thousands of dollars - cleaning up the damage the thieves have done to their good name and credit record. Victims may lose job opportunities, be refused loans for education, housing, or cars, or even get arrested for crimes they did not commit. Victims often feel angry, frustrated, and humiliated as they take action to recover their identity.

Check your credit report every 12 months. Every U.S. resident can get one free credit report from each of the three major credit reporting bureaus (Equifax, Experian, TransUnion) per year. For free credit reports, go to www.banks.com.