You can take steps to prevent identity theft, which is a crime that occurs when someone wrongfully obtains personal information and uses it for their own financial gain. Businesses and individuals can take active steps to prevent identity theft from occurring. Personal and business information should be protected and only given to reliable sources. Unfortunately, identity theft continues to occur, even when people have taken all the necessary steps for prevention.

If for some reason you are a victim of identity theft, you will need to take immediate action. First, you should collect and make copies of any information that can be used as evidence. You may want to collect credit card statements, banking statements, receipts, a copy of your driver's license, social security card, and any other documents that might be helpful for an investigation. You should then present this information to the police, your bank, credit card services, credit reporting companies, and/or the Federal Trade Commission.

Methods to Prevent Identity Theft

Those who are trying to prevent identity theft, should remember the acronym, SCAM. The S stands for Stingy and relates to being stingy about giving out personal information without a trusting relationship. The C stands for Check which means you should check your financial information on a regular basis. A stands for Ask because you should periodically ask for a copy of your credit report. Finally, M stands for Maintain and refers to maintaining records of all financial accounts.

Software programs, web-based services, and other technology solutions can be used to prevent identity theft from occurring. These solutions can be used by individuals at home, but are most appropriate for financial institutions and other large businesses. Technology solutions and programs can be used to quickly check records and government watch lists for criminals or individuals with suspicious behavioral patterns.