Everyday Wealth:

Identity theft is when someone assumes your identity and opens bank, credit card or other accounts to commit fraud or theft. The Federal Trade Commission says the crime is growing at an alarming rate, with estimated 9.9 million victims in 2002. And, creative crooks are plotting new schemes all the time. Could you be a victim? ... YOU BET!

Vigilance is your best weapon. Routinely check your credit report for unauthorized activity, guard your Social Security number and keep track of all your accounts. The best protection is prevention. 1. Guard your Social Security number. It is the key to your credit report and banking accounts and is the prime target of criminals. Only give your Social Security number when absolutely necessary. Avoid using it as your account number whenever possible. If merchants demand it, ask for an alternate number and take your business elsewhere if they insist on writing it on your check. Likewise, don't print it on your checks. 2. Monitor your credit report. Check it at least once a year (more often is better). Clean up any errors. Look for personal information and credit accounts that are not yours. Credit bureaus make mistakes. Your credit report contains your SSN, present and prior employers, a listing of all account numbers, including those that have been closed, and your overall credit score. After applying for a loan, credit card, rental or anything else that requires a credit report, request that your SSN on the application be truncated or completely obliterated and your original credit report be shredded before your eyes or returned to you once a decision has been made. A lender or rental manager needs to retain only your name and credit score to justify a decision. 3. Buy a shredder and use it. Shred everything, including credit card receipts (after you've reconciled your bill), old bank statements, medical statements, everyday bills, and pre-approved credit card offers. Any document that has personal financial information on it can give an identity thief a foothold into your life. Use a crosscut shredder. Crosscut shredders cost more than regular shredders but are superior.