Identity theft is serious. While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days repairing damage to their good name and credit record. Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not commit.

Identity theft starts with the misuse of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. For identity thieves, this information is as good as gold.

Skilled identity thieves may use a variety of methods to get hold of your information, including:

• Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
• Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
• Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
• Changing Your Address. They divert your billing statements to another location by completing a change of address form.
• Old-Fashioned Stealing. They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access.
• Pretexting. They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.

The best way to find out is to monitor your accounts and bank statements each month, and check your credit report on a regular basis. If you check your credit report regularly, you may be able to limit the damage caused by identity theft. Unfortunately, many consumers learn that their identity has been stolen after some damage has been done. You may find out when bill collection agencies contact you for overdue debts you never incurred. You may find out when you apply for a mortgage or car loan and learn that problems with your credit history are holding up the loan. You may find out when you get something in the mail about an apartment you never rented, a house you never bought, or a job you never held.

What should you do if your identity is stolen?

Filing a police report, checking your credit reports, notifying creditors, and disputing any unauthorized transactions are some of the steps you must take immediately to restore your good name.

Should you file a police report if your identity is stolen?

A police report that provides specific details of the identity theft is considered an Identity Theft Report, which entitles you to certain legal rights when it is provided to the three major credit reporting agencies or to companies where the thief misused your information. An Identity Theft Report can be used to permanently block fraudulent information that results from identity theft, such as accounts or addresses, from appearing on your credit report. It will also make sure these debts do not reappear on your credit reports. Identity Theft Reports can prevent a company from continuing to collect debts that result from identity theft, or selling them to others for collection. An Identity Theft Report is also needed to place an extended fraud alert on your credit report.

It's difficult to predict how long the effects of identity theft may linger. That's because it depends on many factors including the type of theft, whether the thief sold or passed your information on to other thieves, whether the thief is caught, and problems related to correcting your credit report.

Victims of identity theft should monitor financial records for several months after they discover the crime. Victims should review their credit reports once every three months in the first year of the theft, and once a year thereafter. Stay alert for other signs of identity theft. Don't delay in correcting your records and contacting all companies that opened fraudulent accounts. Make the initial contact by phone, even though you will normally need to follow up in writing. The longer the inaccurate information goes uncorrected, the longer it will take to resolve the problem.

Tips for Combating Identity Theft

• Do not give out personal financial information, especially your social security number, on the phone unless you initiated the call and know who you are talking to. Also, do not give out personal financial information, especially your social security number, on the Internet.
• Shred or tear up financial documents before discarding them.
• Check statements for any unauthorized debits or charges.
• Save all receipts from purchases and services and compare them with the monthly billing statements.
• Immediately report unauthorized debits or charges to Orange Community Bank or your credit card company.
• Never leave receipts at bank machines, bank counters, trash receptacles or unattended gasoline pumps.
• Before revealing any information online, ensure the Web site is securely protected.
• Obtain a free copy of your credit report
• Minimize the number of credit cards and identifying information you carry.
• Store new and cancelled checks in a secure place.
• Be aware of "shoulder surfing" when in public places. Do not display calling card numbers, bank and credit card numbers and other personal data for the view of others.

Equifax: (800) 525-6285
Experian: (888) EXPERIAN
Trans Union: (800) 680-7289

Free Credit Reports
You can now get their credit report online in seconds. It's fast, easy, and free. Consumers have the right to order a free copy of their credit report thanks to a federal law known as the Fair and Accurate Credit Transactions Act. Under terms of this law the three major credit reporting agencies, Equifax, TransUnion and Experian, are each required to provide consumers, upon request, a free copy of their credit report once every 12 months from a centralized source. This comes as a welcome relief to the millions of Americans who have had to pay to review their credit reports in the past.

• The credit reporting agencies have authorized Annualcreditreport.com as the official site to distribute the free credit reports. The agencies have stressed that this is the only web site they have endorsed to distribute free annual reports.
• Annualcreditreport.com allows you to view and print one, two or all three of your free credit reports quickly via a secure Internet site.
• You can also request the report by phone (877-322-8228) or by mail (Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281).
• You'll be able to order all three credit reports at one time, or at different times throughout the year. It's your choice.
• Be sure to order from the centralized agency, Annualcreditreport.com. If you go directly to the individual credit reporting agencies, you will be charged unless you fit another criteria for a free report.

Visit the Federal Trade Commission's website for more information on the Fair Credit Reporting Credit Act.