Identity Theft

Each year, an estimated 700,000 consumers fall victim to identity theft, according to the Federal Trade Commission (FTC). To make matters worse, it typically takes 14 months for a victim to discover identity theft and, once discovered, the average case takes 175 hours and $1,500 to clear up.

If these statistics raise a red flag for you, that's good. The best protection against identity theft is consumer awareness.

To reduce the likelihood of having your identity stolen, order a credit report at least once a year from all three credit bureaus and examine each report carefully. You can also request of free copy of your credit report. If you suspect that you have been the victim of identity theft, experts recommend you take these steps:

Call the FTC's Identity Theft Hotline at 877-438-4338, or file a complaint online.
Contact the fraud departments of the three major credit bureaus, Experian (888-397-3742), Equifax (888-766-0008), and Trans Union (800-888-4213). Tell them to flag your file with a fraud alert.
Contact the security or fraud department of any of your accounts that have been tampered with or opened fraudulently.
File a report with either your local police or the police where the theft took place.

The most important thing when dealing with identity theft is to be careful with your documents and watch out for suspicious activity. Whether you decide to use an identity theft protection service is simply a matter of what makes you feel secure.

How to avoid identity theft

Don't give out personal information unless you know whom you're dealing with.
Have passwords on your credit card and bank accounts, but don't use your mother's maiden name, birth date, or other obvious information.
Order your credit report annually from the three major credit bureaus.
Pay attention to billing cycles. Identity thieves may reroute bills to another address to hide their illegal activities.
Shred or tear up any personal financial documents before throwing them in the trash.
Never carry your Social Security number in your purse or wallet

To find out more about identity theft and how it can affect you, check out our Home and Family Finance Resource Center.

CUNA Mutual Group has also introduced Identity Guard, which will watch your credit reports for unusual activity, and alert you should there be any suspicious activity.