Identity theft may sound like something that only happens to the other guy, but this doesn't change the fact that it is a real threat and it can happen to you. Not only can it happen to you, it can happen to your parents who don't own a computer and it can happen to your child who is still in elementary school.

If a thief breaks into your house, you'll feel violated. Your valuables were taken. In some cases you'll file an insurance claim or accept the loss and move on, hopefully correcting the security flaws that allowed the thief in, in the first place. But identity theft lingers on potentially for months or years to come. Collection agents could be calling you for a very long time as you explain again and again, that it wasn't you who borrowed that money. The victims of identity theft have even been arrested based on outstanding warrants because of the thief's activities done under the victims name.

Javelin Strategy & Research recently released a study on identity theft. Only one in ten cases starts with the internet. Less often it is the stolen social security number from a web site or faked email than it is the relative, housekeeper, health worker who steals a credit card, blank checks, bank statements and the like.

Recent estimates are that 400,000 children may be victims of identity theft. To the identity thief, the child doesn't have bad credit, they do have a valid social security number and many users of credit reports will miss the fact that this would seem to be a minor. The effects of this theft may not be known for months, but may be felt for years even impacting their ability to obtain student loans.

What should you do to help protect yourself and your family:

• If your bank offers electronic statements, take them. By not having bank statements and checks in your mailbox you have eliminated one major way your confidential personal information is obtained. By not printing these out, they're not available to others in your home.
  
• Electronic statements from your credit card companies also accomplishes this.
  
• Your internet banking account and access to credit card statements online allows you to check your accounts more frequently and thereby detect problems sooner. Earlier recognition leads to faster resolution.
  
• Shred paper documents, even credit card offers sent to you. This prevents a dumpster diver (someone going through your trash) from applying under your name.
  
• Monitor your credit reports annually. There are three major credit bureaus and each one is required to give you one free copy each year. These three often have the same information. Instead of getting one from each at the same time, get one every four months and better see what is happening on your report throughout the year. More information on this is under out Debt Management section.
  
• If you use a PC at home, keep your firewall on and up to date and do the same with an ad blocker and virus protection. Be sure you and other users, especially the kids, don't provide confidential information when they shouldn't.