Identity thieves can use your personal information to take over your Savings or Checking accounts or open new ones and these damages do not have limits. They may even use your good name to get a job, take out a car loan, or rent an apartment. Here is how to protect yourself and your family.

First things first, let us define what Identity Theft is. Identity theft occurs when a criminal uses your personal information to steal your identity. They will use your identity to apply for credit and open bank accounts. They take your money and do not pay the bills they rack up in your good name. They bounce checks in your name. They ruin your credit and they are laughing all the way to the bank while you sit dumbfounded, wondering how it could have happened. Like most of us, you thought you were protected by the banks and credit card companies you trusted to keep your information safe.

Sorry to inform you but you are the first line of defense. Here is what you need to know to protect yourself.

Do not give out personal information, especially your Social Security number or bank account numbers, unless you have initiated the contact. This seems obvious but thieves will pose as representatives of legitimate companies with which you do business and request you 'verify personal information.' In "verifying" it, you are actually giving it to the caller. Instead, tell the caller you're busy and will have to call them back, then ask for a name and contact phone number.

Usually, when you ask the scammer for a call back number they will make excuses as to why you cannot call them back or they will just hang up. Even if they give you a phone number, do not use it to call them back. Instead, use your billing statements or a phone book to get the number of the business, call and verify the caller and his or her purpose for contacting you.

There are several types of identity theft you need to protect against.

Account takeover identity theft: This refers to the type of situation where an imposter uses the stolen personal information to gain access to your existing accounts. Often the identity thief will use the stolen identity to acquire even more credit products by changing your address so that you never see the credit card bills that the thief runs up.

True name identity theft: This means that the thief uses personal information to open new accounts. The thief might open a new credit card account, establish cellular phone service, or open a new checking account in order to obtain blank checks. The Internet has made it easier for an identity thief to use the information they've stolen because transactions can be made without any real verification of someone's identity. All a thief really needs today is a series of correct numbers to complete the crime.

Criminal identity theft: The thief uses your personal information to assume your identity. The thief gives your name and presents counterfeit ID to law enforcement when questioned or arrested for a crime. In a worst-case scenario, you could be prosecuted for the actions of the thief who has stolen your identity.

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