RIP-OFF ALERT: A sophisticated identity theft ring responsible for $1.5 million in thefts has been cracked by federal prosecutors, according to The Los Angeles Times.

Some 53 alleged criminals posed as bank representatives via e-mail or over the phone to get otherwise savvy victims to divulge personal account information. The info was then used to empty out bank and brokerage accounts. A part of the $1.5 million stolen was routed overseas to Egypt, where another 47 un-indicted co-conspirators remain at large.

This is one of the unintended consequences of dealing with such large organizations today. We don't know who we're doing business with. So unless you're being contacted by an employee who you have longstanding personal experience with, don't divulge any sensitive information. Clark instead recommends calling your bank or brokerage house and asking them if they really requested any updated info on the account.

Keep in mind that banks are duty bound to restore your funds in the event of a breach. However, there is no similar law requiring the restoration of money for a brokerage or mutual fund account.

So if you have a meaningful amount of money in a brokerage house, check your account several times a week. Executive producer Christa and her husband avoided financial Armageddon this way when a hacker targeted their account.

The Identity Theft Resource Center has partnered with MyIDScore.com for a new online test that predicts your risk of having your identity stolen.

Simply go to MyIDScore.com and click the "Check My ID Score" banner. You'll be asked to enter your name, home address, phone number, Social Security number and other identifying info.

It's entirely up to you if you choose to give your Social Security number. It is not required, but tends to give a more accurate reading of your risk level.

Clark chose to enter his Social because he has already frozen his credit. The results? The consumer champ scored a 424 on a scale with 1 being the lowest and 1,000 being the highest. Scores of 500 or more indicate you are in greater danger of having your identity stolen. If you score a 750 or above, you are a sitting duck!

Our team members also ran checks on themselves. Producer Joel scored a 183. Executive producer Christa scored a 271. But the lowest score of all went to senior producer Kim, who scored an 85 without her Social and a more accurate 105 when she did enter her Social.

If you are in the danger zone above 750, Clark recommends going the next step and freezing your credit to prevent economic identity theft.

RIP-OFF ALERT: The Sun Sentinel reports that con artists are calling people on the phone posing as credit card fraud investigators in an effort to steal sensitive account information.

The crooks often pretend as if they're calling to investigate a supposedly questionable charge that you may want to dispute. But as part of their inquiry, they'll ask you to verify that you are still in possession of your card. They'll instruct you to turn it over and read the three-digit security code on the back to them.

Don't do it! That's the key piece of info a crook needs to have an online shopping spree at your expense if they already have your credit card number.

Have you gotten a call like this and already divulged that security code? Call the telephone number on the back of your card immediately and explain the situation to them. Remember, your credit card company will never ask you for those three digits on the back of your card.

Sometimes you may get an automated call from your credit card company where they want to verify a charge on your account. Clark had this happen recently after he used his card to make a charitable donation.

They had left one number on his answering machine, but he wasn't familiar with that number. So he simply called the number on the back of his card to reach the fraud department. That's a surefire way to stay safe.

The story of Margot Somerville is a true cautionary tale about identity theft. Clark originally read about this 64 year old's story in The San Francisco Chronicle and was floored by the unbelievable details.

Today, Somerville was a guest on the show and gave a firsthand account of what happened to her.

Before we begin, it's important to note that Somerville spent 25 years with Wells Fargo and retired as a vice president at the financial giant. Yet it was the very bank she was so loyal to that accused her of masterminding a check fraud scheme.

In June 2006, Somerville's wallet was stolen in San Francisco and she promptly filed a police report. She practically forgot about the whole episode until the following November. It was then that she went online to pay some bills and noticed $20,000 missing from her bank account.

After reporting the suspicious activity, she was asked by police to take a number of handwriting tests and lie detector tests over the course of several months. Much of the testing took place in Denver, where at least part of the missing money was withdrawn from her account by crooks.

But while Somerville thought she was helping police build a case and catch the criminals, they were really building evidence against her.

She still didn't have her money back 6 months after the initial $20,000 went missing.

Then in April 2007, Somerville was arrested at her Walnut Creek, Calif., home and spent the night in jail. She was charged with 19 counts of ID theft because Colorado authorities believed she was in fact an ID theft ringleader and not a victim.

The case was ultimately thrown out of court in November 2008. But Somerville says it was only dismissed because the police couldn't get enough evidence to pin it on her; they still believe to this day they had the right woman.

So what's the takeaway here for you? Somerville sees a twofold lesson.

First, always file a police report no matter how simple you think the crime may be. It always helps to have documentation.

The second lesson is a bit more surprising. Somerville told Clark that she learned the drawbacks of being too cooperative. Had she not been so willing when it came to taking multiple handwriting and lie detector tests, the police may have pursued another line of inquiry and none of this would have ever happened.

By the way, Somerville did eventually get her $20,000 back after much grief.

Clark has a story that will turn your stomach if you have a passport. The Washington Post reports that there was a crooked employee at the U.S. State Department who worked with a criminal ring to steal personal info from passports.

What kind of info is available in a passport record? Basically everything that a criminal could want to steal your identity and open false lines of credit. That includes Social Security number, physical description, names and places of birth of your parents, etc.

The D.C. police stumbled onto this ring back in March when they stopped a 24 year old smoking marijuana in a car. They had probable cause to search the vehicle and found passport applications, multiple credit cards and more. It was the tip of the iceberg of cracking this ring that potentially had access to the records of up to 192 million Americans who have passports.

The State Department is now sending letters to the several hundred people who actually did have their identities breached, and they're offering free credit monitoring for a year. But they refuse to talk to the media on record about this employee breach.

So what can you do? There's only one imperfect remedy -- but it works: Do a credit freeze. See Clark's guide to credit freezes for detailed info.

A recent caller took Clark to task for telling seniors not to carry their Social Security cards around. This disgruntled listener complained that seniors have to carry their Medicare cards, which contain their Social Security numbers.

For the record, Clark believes seniors shouldn't routinely carry their Medicare cards -- unless they know they have a doctor's appointment on a given day.

Years ago, the government ordered private insurers to start using MRNs (medical record numbers) instead of Social Security numbers to minimize the risk of ID theft. The insurers kicked and screamed, but they ultimately complied.

Now, behind the scenes, the government is trying to force Medicare to do the same. The San Francisco Chronicle reports the Social Security Administration itself is trying to pressure Medicare -- and they're not complying.

Seniors are prime targets for ID thieves because they're the ones with all the assets. 31 states have laws that prohibit or restrict the display of your Social Security number. Why don't the arrogant folks at Medicare care? Why must they aid and abet the ID thieves?

If you've ever seen or heard a LifeLock ad, you know that CEO Todd Davis proudly announces his Social Security number – essentially challenging thieves to steal his identity.

Clark is often asked about whether or not Davis' company offers a legitimate service. First off, yes, LifeLock is a legitimate company. However, Clark doesn't believe they're very effective at protecting your identity. Now the CEO is being sued in Maryland, New Jersey and West Virginia by customers who say his service doesn't work.

LifeLock's business model is based on repeatedly putting fraud alerts on your credit files. These alerts are meant to raise a flag to potential creditors so they carefully verify an applicant's identity. Too often, however, the alerts are ignored and credit is extended anyway to thieves using your name.

The truth is there's no perfect way to prevent ID theft. In the event of a theft, the banks and credit-card companies know it's cheaper to deal with write-offs after the fact than to institute industry-wide practices to end the threat before it begins.

So what's the best available solution? Do a credit freeze. This will shut a criminal down cold when it comes to applying for credit in your name. They can still take a card from your wallet and charge it up, though. But that's the least harmful crime in this arena.

Credit freezes are not a panacea and can be somewhat of hassle to establish. That's why Clark has compiled his credit freeze guide to help you through the process. When you do want to use credit again, "thawing" your records can take from a few minutes to a few days, depending on your state of residence.

It's been 12 years since Clark had his first call about ID theft on the show. Back then there was no name for the crime; now it's become routine. The Identity Theft Resource Center reports that in the first 90 days of this year, the personal info of 8.5 million Americans was stolen from company, government, hospital, university and bank databases.

ID theft is out of control because banks don't know who they're doing business with anymore. Sadly, the parties that can do the most are doing the least. Banks, credit card companies, retailers and credit bureaus don't care about the damage ID thieves can do to your life. The police departments, meanwhile, have too many other responsibilities to address ID theft.

Doing a credit freeze is the only way to protect yourself. You'll get a secret code that you can use to thaw your credit. That way, even if a criminal steals your identity, they can't do anything with it because they don't have the secret code. The credit bureaus intentionally make the process of applying for a credit freeze difficult. Clark has compiled a guide to help you navigate the process.

Clark is getting calls about a new kind of tax ID theft, plus a WTMJ listener recently told him her own disturbing story. The latest scam involves someone using your Social Security number to provide false tax info and apply for a refund as if they're you. Then when you go to file your taxes, you're told that you can't file twice. The ways people get our Social Security numbers are myriad, and there's not enough attention paid to this area. Another scam listeners are telling us about involves getting a notice from the IRS saying you owe money because you did not report all income for a prior tax year. What actually happens is that someone working illegally files a W-4 in your name and that income gets reported by the employer.

Clark has a somewhat radical suggestion that's a twofer: It deals with tax ID fraud and would eliminate the hiring of illegals. Clark recently joined the trusted traveler program and agreed to have his eyes and fingerprints scanned. This allows him to speed through security at select airports. Now Clark thinks it's reasonable -- in an era where nobody seems to know who we are anymore -- to be fingerprinted upon accepting employment or filing a tax return. Does this idea creep you out? Tell us by voting in our poll!

Experian's FreeCreditReport.com is one business venture that enrages Clark. The credit bureau has been slapped with fines for misleading advertising at the website; the service being offered is not free. It turns out that Experian must not like competition -- they've filed suit against LifeLock alleging violation of the Fair Credit Reporting Act and…you guessed it…"false and misleading advertising and fraud." Well, it takes one to know one, Experian.

First off, Clark wants to answer a long-standing question he's been hearing: Yes, LifeLock is the real deal. It is not a scam. They put out fraud alerts 4 times a year with each of the bureaus to reduce, in theory, the amount of ID theft. But in doing so, LifeLock takes a piece of the action away from Experian's Triple Advantage Credit Monitoring service (available via FreeCreditReport.com).

In the interest of full disclosure, Clark wants you to know that he's been approached by LifeLock to put their people on the air. That's not going to happen. While he respects the company, he thinks you'd be better off doing a credit freeze. But he's just riled up over the arrogance of the liars at Experian who want to file suit on the grounds of exactly the kind of garbage they've been doing for years. Would anyone from Experian like to come on the show and offer a rebuttal?

Clark's friend former Georgia governor Roy Barnes recently told him that he has become an ID theft victim. Barnes got a call from American Express wanting to know if he had opened a second AMEX account, which he had not. So he pulled his credit report and found 7 new applications for cards that a New York-based ID thief had been filling out. The credit card companies were just sending cards in Barnes name to the ID thief. After dealing with all 3 of the major credit bureaus, Barnes has special venom for Equifax for allegedly being impossible to deal with. He had a good experience with Experian, and a neutral one with TransUnion.

If this happens to you, Barnes says you must keep perfect notes and write down the agent code of everyone you speak with on the phone. Barnes has a file for every card the thief opened. But this criminal is still out there opening accounts in his name. This guy was a governor and he's going through this! He'll be fine, but 10 million of us deal with some level of ID theft every year. There's no effective marketplace solution yet.

RIP-OFF ALERT: The Berkeley Center for Law and Technology analyzed corporate America to see which companies have the highest incidence of ID theft. The No. 1 company? Bank of America. BoA is the nation's second largest bank. (If you look at the numbers based on total customer base, BoA then actually comes in second behind HSBC). AT&T occupies the second slot, followed by Sprint (No. 3), JPMorgan Chase (No. 4) and Capital One (No. 5). Think about it: 3 of the first 5 are banks, which is understandable. But why are two phone companies way up there? The reason is because they do a credit check when you apply for phone service, and open yourself up as a potential target when they get your info. In the No. 6 spot, we have Citibank. As the nation's largest bank, Citibank has one-third less incidences of ID theft than the smaller BoA! Verizon, American Express, Washington Mutual and Wells-Fargo all round out the top ten. View the complete list online at the Berkeley site.

Now the inevitable question: Why do these institutions have high rates of ID theft? Clark speculates that it must have to do with the way they internally handle your information. Interestingly, the bank with the lowest incidence of ID theft is ING Direct. You would think they'd be up at the top of the list since they're Internet only. But being a newer bank, they've been dealing with outsmarting ID thieves since they launched. It's much tougher for a legacy financial institution to retroactively patch good protection into systems that were built decades ago. ID theft has not grown significantly -- it still happens to about 10 million people a year -- but it's still a major issue. Finally, from the "no they didn't!" category, the New York City Department of Finance sent tax forms to 1000s that showed people's Social Security numbers through the envelope. C'mon people, this is 2008! Get with the program.

Each year, the Federal Trade Commission puts out a list of the top consumer fraud issues. ID theft is by far the No. 1 complaint. In fact, the FTC gets 4 times more complaints about ID theft than they do about anything else. Last year, there were 260,000 individuals who filed ID theft complaints with the FTC. The most common sub-complaint in this field is people opening credit cards under your name; followed by a sharp rise in people opening utilities using your identity; and finally, people using your identity at a place of employment. There's no marketplace solution to the ID theft problem yet. Clark says the best thing you can do is freeze your credit.

Here are the rest of the FTC's consumer fraud issues: Advance-fee loans (No. 10); timeshares (No. 9); healthcare claims (No. 8); Internet auctions (No. 7); computer equipment and software (No. 6); prizes/sweepstakes and lotteries (No. 5); foreign money offers (No. 4); Internet service complaints (No. 3); and shop-at-home/catalog sales (No. 2). The important thing to realize is how many people are determined to separate you from your money. So be cautious and careful to not fall into these traps.

The latest figures show that ID theft continues to grow at an alarming pace. The feds report that 8.5 million people had their identity stolen last year. But other private industry reports put that number between 12-15 million last year. ID theft can range from a minor aggravation to a full-on tragedy. In the latter category, Clark has heard numerous stories over the years of ID theft taking place within families. There are instances where a father will steal the ID of a son, or a mother of a daughter.

So what can you do about ID theft? Try freezing your credit file. Credit freezes are now available in all 50 states from all 3 credit-reporting bureaus. See our credit freeze guide if you're having trouble navigating the often-confusing application process. Credit freezes shut down ID thieves cold. A "perk" is that you also shut down your ability to make an impulse purchase with a new line of credit! You'll pay a nominal fee to do a credit freeze or thaw. But the cost will be nothing compared to the hassle you could have if you leave yourself unprotected. A cautionary tale comes to us from Britain, where the government recently lost the data files of 25 million people in one fell swoop. Now criminals have all the info they need to wreak havoc. The British prime minister is understandably facing a firestorm of protest.

Over the past few weeks, Clark has been talking about the fact that now all three credit bureaus are allowing people in all 50 states to freeze their credit. TransUnion was the first to announce the policy, followed by Equifax and Experian. The Wall Street Journal now reports that credit freezes are accelerating in popularity. This is impressive considering the bureaus aren't making it very easy to find out about credit freezes. Here at ClarkHoward.com we've compiled Clark's credit freeze guide to help you navigate the process. The bureaus would rather make money by selling you alerts (after the fact of an ID theft); the freeze, meanwhile, is a preventative measure. Unless you are a documented victim of ID theft, you'll have to pay to freeze your credit. Just beware that when you want to apply for new credit, you'll have to pay again for a temporary thaw. There is some concern that credit freezes will prevent people from impulsively applying for new credit. But Clark thinks that's a good thing!

If you're a regular listener, you know that Clark often speaks about ID theft, its dangers and how to avoid it. Many people think ID theft happens on the computer. But a Utica College study finds that ID theft by non-technological means is more common. Quite often your identity can be stolen by a crooked employee at an otherwise legitimate company, or at a business that's not careful when it disposes of sensitive information. Retail is the number one place where this crime takes place, but one in four ID thieves works at a financial institution. Speaking of banks, The Wall Street Journal recently reported that they are big conduits of low-tech ID theft. A TV reporter apparently did some dumpster-diving behind a number of banks and found that they unloaded old files and records without shredding them. That leaves your sensitive information unprotected. We're talking about things like names, Social Security numbers, addresses, dates of birth and more.

Only three percent of ID thefts result from high-tech intrusions like a computer hacker stealing info online. By comparison, more than a third of all ID thefts happen when your credit card number is skimmed by an unethical employee -- either in-person or on the phone. The truth is that there are many ways people steal your identity. In fact, e-retailers offer you more layers of protection than when you hand your credit card to someone behind a register who you've never laid eyes on before. About 20 percent of the time ID theft occurs when people steal from your mailbox. But that risk can be easily eliminated by purchasing a locked mailbox at any hardware store.

A few weeks ago Clark spoke about new credit freeze laws for non-victims of ID theft. The new rules have been or are being adopted by all three major credit bureaus. A credit freeze is the most effective strategy to shut down ID theft. Freezes had been free to victims of ID theft, but previously not all non-victims had access to them. Clark froze his credit with TransUnion yesterday -- the first day he was eligible to do so. He had to write a letter providing his name, address and Social Security number, plus a copy of his driver's license. Then he also had to provide a credit card number to pay a $10 freeze fee. Some people may feel uncomfortable giving up all that information, but Clark looks at it as a calculated risk that's very smart. The cost of not doing a freeze and having your identity stolen can be disastrous. Experian will allow credit freezes beginning Nov. 1, while Equifax still has not announced a start date yet. What does a credit freeze mean for Clark's life -- or yours? It means that he must pay $10 per bureau when he wants to thaw his records to apply for future credit. If that sounds costly to you, compare this cost to the thousands of dollars and untold hours you'd have to spend restoring your good name and credit following an ID theft.

A few days ago Clark told you that TransUnion and Equifax will begin allowing people who don't live in states with credit freeze laws greater access to freezes for a price. Experian has now announced that they too will modify their credit freeze rules in the same way. Credit freeze laws started in California and are now in 39 states on the way to being in all 50. But surprisingly only about 50,000 people across the country have taken credit freeze action. Experian's offer begins Nov. 1 and will cost $10 just like TransUnion and Equifax. So if you want to freeze (or unfreeze) your credit with all three bureaus it will cost $30. Keep in mind that this service is completely free those who are already victims of ID theft and have a police report or FTC affidavit to prove it.

What is a credit freeze and why is it so important? Criminals have access to your ID so many ways. Freezes allow you to lock up your records and select a secret code that only you know and can use to temporarily thaw your credit. So criminals won't be able to get credit in your name because they don't have your code. This is the most effective tool against economic ID theft and it's a shame that so few people have used it so far. Even Clark plans to do a credit freeze now that it's available to him in Georgia. After all, ID theft happens to 10 million people each year.

There's good news for consumers who don't live in one of the nearly 40 states with credit-freeze laws on the books. TransUnion and Equifax have now agreed to allow non-victims of ID theft in such states to freeze their credit for a cost of $10 beginning Oct. 15. If that cost seems high to you, just think about how expensive it is to be a victim of ID theft. Of course, freezes already are free to those who've filed a police or FTC report about having their ID stolen. The benefit of a credit freeze is that even if a thief has your information they can't do anything with it. There's no word yet if Experian -- the third major credit bureau -- will follow the lead of TransUnion and Equifax and allows credit freezes in states where it's not already on the books. Experian just lost a lawsuit on appeal that concerned negligence in its credit reporting practices. The bureau has messed someone's credit up and had a false judgment against them. But it still wasn't corrected even when the person had documents to prove that Experian made an error. The three credit bureaus wield so much power. Their reports determine if we get credit, job offers and loans. They should be held accountable for accuracy, but unfortunately this is not yet the case.

Earlier this week, Clark told you about a security breach at Monster.com where hackers stole the names, addresses, phone numbers and e-mail addresses of 1.3 million people. There have been so many breaches over the years that we're almost numb to news about them. But now there's reason to believe that the Monster breach could affect more than just a million people. Nobody knows the exact number -- it's just larger than previously thought. So if you've ever posted your information on Monster.com, you need to be aware that criminals are calling people up and pretending to be potential employers or banks to get additional personal information. Once they get your additional info, they have all they need to take your identity or empty your bank account. You should only divulge sensitive information in person at a potential place of employment or a bank. The web is too anonymous and dangerous of a place to share your info via e-mail.

Job seekers who entered their information in the Monster.com database may be at risk of identity theft following a massive security breach at the company. Identity thieves managed to steal the names, addresses, phone numbers and e-mail addresses of 1.3 million people. So beware if someone claiming to be an employer calls or e-mails asking to screen you as a potential employee. If they're an identity thief targeting you, they may ask you to divulge your social security number, mother's maiden name or place of birth. These are some of the remaining key pieces of info they'd need to steal your identity. If you think you've already been targeted or may be in the future, you're best option is to do a credit freeze. Consumersunion.org offers a comprehensive list of states that have credit freeze laws on the books. If you're already a victim, it's free to do a credit freeze. But you may have to pay some nuisance fees if you just want to do a freeze as a preventative measure. Right now 10 million people have their identity stolen each year. So why is there no national credit freeze law? The problem is that Congress is in cahoots with bank lobbyists who want to repel all freeze laws -- even those on the state level. We'll keep you posted...

If you have kids, you probably know that Facebook is big among teens. This social networking site is becoming one of the main ways that young people communicate with each other online. But the problem is that if you want to use Facebook, you have to list info about yourself on a public page. This makes you a target for identity theft. A recent study found that nearly 50 percent of Facebook users put enough info -- things like birth date, hometown, family information and more -- to aid ID thieves. Kids don't understand the risks inherent in using some of this new social networking technology. It should be up to parents to educate themselves so they can have an intelligent discussion with their kids about the issue. Clark advises parents to sign up for their own accounts and figure out how these things work so they can safeguard their kids.

The calls about ID theft that Clark gets on the show are disturbing. Not only is the crime appalling, but there's a lack of caring shown for the victims. They typically have their credit ruined, lose a job offer or get higher interest rates on a loan. But sometimes the damage reaches a whole new level. Today Clark had a chance to hear from a male college student named Bo who was jailed for four days because someone stole his identity and then stole a car.

This sad story begins when Bo noticed his wallet was either stolen or went missing about four to six weeks ago. He went ahead and cancelled his credit cards, got a new license and did everything else one might do in such a situation. Then about one week later, he was visiting at his father's home. While on the phone around 10 p.m., he saw the police sneaking up on him to arrest him for grand theft auto. From the get go, there were signs that the police had the wrong guy; while the arrest warrant had all of Bo's information correct -- name, height, weight, birth date, etc. -- it listed him as a black male even though he is white. The police arrested him anyway and Bo spent four days in jail. He wasn't allowed to post bail because grand theft auto is a serious felony charge. His parents had to hire a lawyer, who got the courts to look into the details and see that Bo wasn't the right guy. The case has since been dropped, but a record of his arrest remains and still has to be expunged. Worse yet, Bo's life was turned upside down for four days and he hasn't received any apologies from the police or courts. This just goes to show that nobody seems to care about the innocent people harmed through ID theft.

One crooked employee at Fidelity National Information Services stole the personal information from 2.3 million Americans, taking their checking account numbers, social security numbers, and more. He has since sold the information to a "broker." This is a big deal, because if someone gets your checking account number, unlike your credit card number, you could end up behind bars when the criminal writes checks pretending to be you. Criminals are able to steal information easily. You never know that they have it until it’s too late, and it's almost impossible to know where the breach in security originated. In 37 states, you can freeze your credit file so that if someone does steal your identity, there's nothing they can do with it. It's very beneficial, but credit bureaus are keeping this secret. This is because they lose all the money they make from your dossier if you freeze your credit. Clark thinks we need a fining system in place for credit card companies, banks, and lenders so that they are held responsible when something goes wrong and they give credit to the wrong person. You can check if your state has credit freezes at financialprivacynow.org

Credit bureaus have been getting a lot of heat on Capitol Hill because it's way too difficult for consumers to fix errors on a credit report. The Federal Reserve is also on the hot seat after it was supposed to have issued rules four year ago detailing how to correct such errors. But the Reserve hasn't issued those rules because it's in cahoots with the banks. The last thing the banks want to do is lose money if you can fix errors on your credit report. Think about it: The banks and insurance companies have an advantage when you have errors on your report. You'll get a lower credit score and they can give you higher price quotes on loans and insurance coverage. We're talking here about an industry that is verging on being almost purposely dishonest.

USA Today recently did a story on how the major credit bureaus lobby state lawmakers to block credit freeze laws. Such laws allow consumers to put a hold on their accounts after their identities have been stolen. Thankfully, more than 30 states now have credit freeze laws despite the bureaus' best efforts. Now the bureaus even want Congress to outlaw all existing credit freeze laws. This is about money, plain and simple. Every time a freeze happens, that means the bureaus can't profit off the dossiers they collect of people's information. On an interesting note, very few consumers are actually using credit freezing for protection when they have the option. That's probably because they're afraid of alienating the bureaus should they need credit in the future. Some states even have "quick thaw" laws on the books. Those laws allow you to use a secret code for single transactions after a credit freeze. You can then immediately re-freeze your credit. Retailers like that because it still allows people to make impulse buys. In time, Clark believes that all 50 states will have freeze and thaw laws. But instead of fighting the push for these laws, shouldn't the credit bureaus be helping to prevent ID theft?

Did you know that if a criminal gets your credit card number, they can show their "generosity" by donating money to charity using your credit card? Why are criminals doing this? This is happening because the charities will let the criminal know if the card is verified and still active. More importantly, it's a great way for criminals to test if the card will be reported stolen, according to a story Clark read in Newsday. Criminals can then sell your verified card number for three times the value of an unverified card! If someone steals an unverified number, it's worth $6; if it is verified, it sells for $18. The Red Cross has reported 700 fraudulent donations using stolen cards last month alone! Therefore, if you see a small unauthorized charity donation on your bill, be alert. Clark says the solution to this problem is so easy. The credit card companies should do what is done in Europe by inserting a smart chip in the card which requires a secret code. So even if someone steals your card, if they don’t know your code the card can’t be used. The result in Europe is that credit card fraud is nowhere near the problem it is in the United States. So why are we still using '60s technology to print out credit cards here? It seems like the banks would rather deal with the fraud that occurs and then clean up the mess after the fact, rather than spend the money proactively to get things done right in the first place.

For the 7th consecutive year, identity theft is the No. 1 complaint filed with the federal government. In fact, it accounts for almost 40 percent of all complaints made today. It happens for all kinds of reasons, including local governments putting your social security number on Web sites. There is a lot of focus on industry being sloppy with our numbers, but government is just as guilty. In Texas, the state’s Attorney General has made it a crime for any government agency or individual to post this information. Even if it’s done inadvertently, that government worker can be charged with a crime. There is a site that allows you to see if your social security number has been compromised. It is called stolenidsearch.com. The site tries to push other ID theft prevention software that costs money, but don’t buy into those. Just enter your number and read what it says. So, where are you at the greatest risk to have your identity stolen? Based on per capita, the Top 10 in reverse order are Springfield, Ill.; 9 - Dallas; 8 – Portland, OR; 7 -Phoenix ; 6 – Atlanta; 5 – Greenville, MS; 4 – Little Rock, Ark.; 3 – Los Angeles; and 2 – Detroit. The city where it is most likely to happen is New York City. Just because someone asks for your social security number, doesn’t mean you have to give it.

Identity theft remains the No. 1 fraud complaint at the Federal Trade Commission. In fact, it accounts for about 40 percent of all the complaints they receive. Why? It’s low on the priority list with the authorities and it’s a very difficult crime to investigate. Also, judges tend to look at ID theft as no big deal because no one gets hurt physically. Convicted ID thieves don’t go to jail for very long and they often never get caught. So, in the case of ID theft, the phrase, “Crime doesn’t pay,” doesn’t apply. Yet, it’s so detrimental to the victim. It’s even worse when the unsuspecting innocent victim is hauled off to jail because someone stole his or her identity. What everyone seems to miss is that ID theft is preventable, especially in the more than 20 states that allow “credit freezing.” When you freeze your credit, you get a secret code that allows you to freeze and thaw your credit. So, even if a criminal steals your identity, he can’t do anything if your credit is frozen. About 2 million people can freeze their credit right now, but only about 100,000 have taken advantage of it. Sometimes it costs money and sometimes it’s free. But it’s worth looking into. The states where you can freeze your credit are listed here. The rest of the states are considering starting credit freeze laws, which is good news. Let’s hope more catch on.

The most recent edition of Reader’s Digest explores identity theft and the latest target for thieves: medical records. Most people write their social security number every time they visit the doctor or other medical facility. You should ask for a good reason why these facilities need the number before you give it. In other ID theft news, roughly half of these crimes turn out to be perpetrated by friends or family members. Someone who knows us well is just as likely to steal our identity as a stranger. If a family member steals your identity and there is a chance of pressing charges, Clark wants you to consider it strongly. You are doing no benefit to your relative if you let him or her get away with it.

Innocent people are ending up behind bars these days, mistakenly charged with identity theft. The principal reason is because their checks are being stolen and then those checks are used illegally to buy all kinds of high dollar items. Banks do nothing to help those innocent people once the checks are used, so they end up in jail. The trouble usually starts when you carry your checkbook in your purse or bag, or keep it in your glove box. Also, if you order checks from your bank, be sure to pick them up from your branch. Do not have them delivered. And if it takes longer than 10 days, call you bank and find out what happened.

Insurance companies are now helping customers prevent and deal with ID theft. It's being called ID theft insurance. Learn more!

What are the chances that you will become the victim of identity theft? Well, about 10 million people had their identities stolen last year. The sad news is that solutions are there; we just don’t know about them. Financial institutions that could promote awareness and implement protection programs simply haven’t. Having the ability to freeze your credit is one of the most important steps once ID theft has occurred. Right now, just a handful of states allow you to do that. California, Vermont, Texas, Louisiana, Colorado, Washington and Maine have credit freezing laws. In California, you can even do a proactive freeze. You have to go through a lot of work to unfreeze your credit, but some people are willing to do it. There are varying degrees of identity theft and some are harder to clear up than others. Nationwide Mutual Insurance found that one in three people are unable to get their good names back once it’s happened. So what can you do? Don’t carry a checkbook, buy a shredder and “opt out” of credit card pre-approvals are three of the best ways to prevent it. Just call 1-888-5-OPT-OUT to stop pre-approvals. You will have to give your social security number and that is fine. Lastly, you want to get a copy of your credit report at least once a year. It’s free now, so just go to annualcredit report.com.

This year has been a flashpoint in the history of identity theft. Not only were there a record number of identities stolen, with the number increasing each month. But there were also huge security breaches at Choicepoint, Bank of America and many other huge companies. These companies carelessly leaked or sold customers’ financial information to criminals, causing a surge in ID theft. One law in California has been the saving grace in this catastrophe, and it was the brainchild of Sen. Deborah Bowen. Today, Clark talked to Bowen about the law, which has changed the focus of identity theft across the country. The beauty of the law is that it requires companies to notify customers when a breech has occurred. Before that, companies in California just kept it a secret and charges would all of a sudden show up on your credit card bills and credit reports. She talked about the fact that people deserved “fair warning” when something like this happened to them. And Clark hopes it takes shape in all other states soon!

Clark has been talking for months about buying a locking mailbox, but he puts it off about every weekend. Well, this weekend, while he was away, his wife went ahead and bought one. The main reason is because identity thieves often steal mail to accomplish their crimes. They look for bank statements, pre-approved credit applications and similar items to forge your identity and then they spend all of your money. It’s growing even more because of the addiction many people have to methamphetamines. You wouldn’t think the two would have anything to do with each other, but meth addicts have gotten wise to stealing identities as an easy way to get money and buy drugs. So, lock your mailbox if at all possible.

The Wall Street Journal has a Page 1 story about how several companies have leaked personal and financial information of some it’s most wealthy clients. It’s sitting there for public consumption because of the carelessness of several companies, including Bank of America, U.S. Banc Corp, AmSouth, City National Bank of Los Angeles and Dreyfuss. The Wall Street Journal contacted these companies and Bank of America claims it is committed to doing something about this. Dreyfuss officials said they are “re-evaluating” how information is processed at the company. But, really, what can BOA do? It’s also creating a crisis in public confidence. Apparently, people are getting more gunshy about buying things on the Web, which can seriously harm our economy. We need privacy rights legislation in the United States and the way to accomplish that is to take political action. We need clear laws about how our personal information can be collected and used, and Congress needs to establish a law detailing exactly that. So what can you do to help? We need to write our representatives and tell them exactly what we need. So Clark is crafting a letter you can send that will get their attention. We will let you know when it is ready. Identity theft didn’t exist until these databases started forming, and the organizations that collect our information are responsible for letting it get out of hand. We have some cowboy capitalism going on and we need a new sheriff in town.

Up until now, there has been no requirement that the banks and other organizations notify you if your information gets loose or gets into the hands of criminals. It’s been a huge problem with banks recently, including when Bank of America lost track of 1.2 million customer’s personal information. Another recent example happened at Boston College, where the personal information of every single alumnus somehow vanished. Now, according to the FDIC, banks must notify you if any of your information has been “misused.” We’ll see how this plays out on the street.

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Speaking of banks, the San Francisco Chronicle reports that BOA and Wells Fargo are now charging customers who call customer service. The fees apply even if the error is caused by the bank! Wells Fargo charges $2 to talk to a human, and BOA charges $1.50. So how do you find out you’ve been charged? It shows up on your credit card statement. Apparently, it’s in the bank disclosure statements, but it’s well hidden. Don’t sit by and let a bank treat you this way. Let your voice be heard and ask for a credit. Then fire them!

The FTC has published its list of the No. 1 consumer complaints out there today. People made complaints in a number of areas, but only two had real statistical significance. Identity theft was No. 1, followed closely by auction site fraud. And when anyone says “auction site fraud,” it means eBay. eBay has been a fast-growing enterprise that has recently raised prices, and customers are being more disgruntled. Clark thinks eBay is hurting itself by failing to police its marketplace and protect its customers. It’s a brilliant idea. But because of eBay’s inability to protect users, buyers and sellers must be extra careful. Therefore, consumers must realize that they may lose their money if they enter into a transaction. It’s up to eBay whether it wants to care. But you need to know what could happen before you do business on the site. With larger transactions, it is buyer (and seller) beware. Clark doesn’t think this business model will work for long with eBay. But for now, it’s up to you.

The Wall Street Journal has a Page 1 story about how several companies have leaked personal and financial information of some it’s most wealthy clients. It’s sitting there for public consumption because of the carelessness of several companies, including Bank of America, U.S. Banc Corp, AmSouth, City National Bank of Los Angeles and Dreyfuss. The Wall Street Journal contacted these companies and Bank of America claims it is committed to doing something about this. Dreyfuss officials said they are “re-evaluating” how information is processed at the company. But, really, what can BOA do? It’s also creating a crisis in public confidence. Apparently, people are getting more gunshy about buying things on the Web, which can seriously harm our economy. We need privacy rights legislation in the United States and the way to accomplish that is to take political action. We need clear laws about how our personal information can be collected and used, and Congress needs to establish a law detailing exactly that. So what can you do to help? We need to write our representatives and tell them exactly what we need. So Clark is crafting a letter you can send that will get their attention. We will let you know when it is ready. Identity theft didn’t exist until these databases started forming, and the organizations that collect our information are responsible for letting it get out of hand. We have some cowboy capitalism going on and we need a new sheriff in town

It seems that every day we become more vulnerable to identity theft. The most recent story occurred in Nevada, where some criminals broke into a driver’s license office and stole a bunch of computers. The computers contained names, ages, dates of birth, photographs and signatures of Nevada residents. The state Department of Motor Vehicles told the media that it was not a concern because the information was encrypted. But that turned out not to be true. The computer vender, which is used by 37 other states, admitted they did not encrypt information. So, who knows what the criminals will do with that information, especially since they also took 1,700 driver’s license blanks, laminate covers and the state seal. Other companies that have fouled up people’s records include Choicepoint, Lexus Nexus and Bank of America. Someone needs to be done because these outfits have been operating free of oversight and penalty. If Clark were in charge he would fine the companies that lose or accidentally give out information. They would be sure to put measures into place if they had to pay money. The most proactive states – California and Texas – allow residents to freeze access to their credit. That is what the rest of the states need to do in order to improve the situation. Retailers and banks are scared to death of the laws in California and Texas, and that is what it’s going to take to whip them into shape.

Identity theft has become huge, as we all know. But how and why does it occur? Many people think that identity theft occurs because of what we do online. But just slightly more than 10 percent happens online. Almost all of it occurs when someone steals your checkbook, your wallet or your mail. The Internet actually helps in reducing ID theft, according to the Better Business Bureau. Monitoring your checkbook and credit card status online is a huge deterrent to identity theft because people find things quickly and can report them right away. So, if you still have a checkbook and you refuse to part with it, keep it at home and know where it is at all times. This is especially important for businesses, which are expected to keep a higher standard of security when it comes to securing checks. Businesses have liability for checks written that are stolen. So, keep very good track of your checks if you own a business.

A chart in USA Today shows us that the No. 1 way your identity is stolen today is by a family member. Strangers are No. 2. And the third most likely way your identity is stolen is by a friend of neighbor. So, more than half the time, someone we know is stealing our identity. When it is someone close to you, a higher burden of proof is put on you to prove it. The whole thing is unfair. You shouldn’t feel guilty about someone who is stealing from you. You have to know what to do to protect yourself. And it’s always a good idea never to share your passwords with anyone, regardless of how close you are with them.

Clark spoke with the chief marketing officer of ChoicePoint today. Choicepoint is the credit verification service that has been ensnared in an identity theft debacle that occurred because ChoicePoint partnered with a criminal business pretending to be legitimate. The criminals stole customers’ information and an estimated 145,000 people were affected. Only California requires that companies notify residents when their identity has been stolen, so that is what happened at first. Now ChoicePoint is notifying everyone else who has been affected. If you are a ChoicePoint customer and want to know more about what the company is doing to protect you, and what you can do to protect yourself, click here.

Choicepoint is an organization that gathers dossiers on Americans and then sells the information to anyone who will buy it. That includes government agencies, private companies, and others. Choicepoint did not check the backgrounds of the people or organizations that it was selling to, and they ended up selling dossiers to criminal enterprises. Close to 150,000 personal dossiers are out there and have been compromised as a result. Clark is FURIOUS! In addition, the company only notified citizens of California, the one state that requires citizens be told. So, after horrible publicity over the past 24 hours, the company is now notifying all of its customers. When is the federal government going to realize that these databases are dangerous to our citizens? Companies should be required by the government to face severe penalties if they sell off our personal dossiers to questionable sources.

A few weeks ago, Clark talked about the company Choicepoint, which collects dossiers on about 200 million adults. Choicepoint sells the information to the Department of Homeland Security, local law enforcement agencies and even corporations. Well, apparently the company has been defrauded by about 50 different phony businesses. Choicepoint sold your information to these companies without any questions asked. So, our financial information is out there and the scamsters are using people’s identities to buy computers, trips and all kinds of goodies. It’s estimated that the information of about 100,000 people is out there floating around in criminals’ hands. Clark wants to know why the company didn’t notify its customers. California was the only state where people were notified and that’s because there is a law in that state requiring that people be notified. How do you explain selling customers’ information to criminals and then not letting those customers know? Clark has given Choicepoint multiple opportunities to respond, but so far they haven’t. They’re still making tons of money off of us. So, why not make some off of the company profit. Clark thinks the executives of this company should be fined for each person whose rights were violated. What do you think?

The Washington Post reported that Wachovia has been sending 140 customer’s account statements to one man in Edina, Minnesota. The man tried to contact Wachovia, but the bank ignored his complaint. A couple weeks later, the man started receiving the same customers’ tax return forms. The man called Wachovia again, and again the bank did nothing. The man then took it upon himself to call the Washington Post and report the bank’s mistakes. Only after the Washington Post became involved, Wachovia decided to try to stop the problem. Wachovia customers are lucky that the man from Edina is an honest person, because if those documents had fallen into the wrong hands, a major identity theft problem could have occurred. This careless attitude from one of the nation’s largest banks is deplorable!! The bank only started to care about the problem when the press got involved.

The FTC has published its list of the No. 1 consumer complaints out there today. People made complaints in a number of areas, but only two had real statistical significance. Identity theft was No. 1, followed closely by auction site fraud. And when anyone says “auction site fraud,” it means eBay. eBay has been a fast-growing enterprise that has recently raised prices, and customers are being more disgruntled. Clark thinks eBay is hurting itself by failing to police its marketplace and protect its customers. It’s a brilliant idea. But because of eBay’s inability to protect users, buyers and sellers must be extra careful. Therefore, consumers must realize that they may lose their money if they enter into a transaction. It’s up to eBay whether it wants to care. But you need to know what could happen before you do business on the site. With larger transactions, it is buyer (and seller) beware. Clark doesn’t think this business model will work for long with eBay. But for now, it’s up to you.

Identity theft has become huge, as we all know. But how and why does it occur? Many people think that identity theft occurs because of what we do online. But just slightly more than 10 percent happens online. Almost all of it occurs when someone steals your checkbook, your wallet or your mail. The Internet actually helps in reducing ID theft, according to the Better Business Bureau. Monitoring your checkbook and credit card status online is a huge deterrent to identity theft because people find things quickly and can report them right away. So, if you still have a checkbook and you refuse to part with it, keep it at home and know where it is at all times. This is especially important for businesses, which are expected to keep a higher standard of security when it comes to securing checks. Businesses have liability for checks written that are stolen. So, keep very good track of your checks if you own a business.

Identity theft has reached an all time low. Criminals recently stole the identity of a 5-month old, according to recent news reports. Apparently, the five-month old was able to drive himself to the doctor’s office, get treatment and buy medicines. The child’s parents received the bill, and quickly sent a letter back to the doctor’s office explaining the situation. Nothing was done about the mistake for a while, and the doctor’s office even planned to turn it over to a collections agency. Now, with all of the media attention, the authorities have investigated the matter and they have a suspect. Turns out the child’s identity was stolen when he was just 21 days old. So, it could have been someone working in the hospital or dealing with the child’s records. ID theft has become so active that anyone is at risk. Be skeptical and be careful with your documents. Shred anything you don’t keep inside your files. And don’t give out your social security number ever!

About 10 million Americans had their identities stolen last year. There has been an abysmal failure on the part of the banking industry, retailers and, of course, the credit bureaus. The bureaus have an uncaring attitude in regard to identity theft and Clark says they belong in the “Hall of Shame.” As a result of all of this apathy, prosecutors have a very tough time putting away identity thieves. It’s very hard to get the level of proof required to send someone to prison. But that is about to change. The House and Senate have passed the “Identity Theft Penalty Enhancement Act.” Now it goes to President Bush, and Clark knows of no reason why he would not sign this bill into law. What it does is allow prosecutors to send someone to prison just for having information about you or your identity. Currently, prosecutors had to prove that someone actively used your information in the commission of a crime. Now, simply being in possession of the information is enough to send someone away. ID theft has been able to grow so much because cases are very time consuming and it’s very confusing to present the case in court. Yes, we need more legislation, but this is a big help. One of the biggest perpetuators of identity theft is the retail industry. Retailers continue to issue instant credit, which is one of the easiest ways to steal someone else’s identity. If someone steals your identity, the first place he or she will go is to a store that sells merchandise that is easy to fence. That includes computers and electronics. So, the thief goes to that store acting as you, gets credit and buys up the store on your bill. So, the retail sector needs to be reigned in. How? Consumers should try to prevent instant credit by writing to their representatives in Congress. If people had to wait a day or two for their identities to be verified, it would prevent identity thieves from racking up huge debts in your name. But it would also stop people from “impulse buying,” which scares retailers to death. We’ll keep you posted!

Clark often reports on ripoffs going on in the consumer world. Today, he has a Top 10 list of scams, schemes and scandals, provided by the state regulators who watch over financial analysts and brokers. Drum roll please…. The No. 10 scam is variable annuities. If you don’t know what these are and you don’t have any, good. If you do, you don’t want to put any more money into these plans. They have massive commissions and are absolutely horrible for your wallet. No. 9 are scandalous mutual fund companies. No. 8 is Internet fraud. No. 7 are “high yield investment” scams. Some that Clark has received calls on involve exotic overseas investments that are a complete scam. Insurance agents who sell people bogus investments come in at No. 6. Most insurance agents are honest, but a number of them have been involved in very scandalous affairs. No. 5 are church ripoffs. Just because someone seems religious does not mean that person is on the up and up. At No. 4, phony brokers. Just because someone says something is going to be a great investment doesn’t mean it will. Promissory notes – or fake CDs – are No. 3. These are promises that someone will pay you later if you give them money. But there is no guarantee, and it’s not safe. No. 2 is any kind of scam against seniors. If you’re not involved in your parents’ finances, be nosy! And, the No. 1 scam in the U.S. involving your wallet are Ponzi schemes. These are schemes where criminals recruit people to pay back other people who have invested, and then you have to recruit someone once you’re in. Eventually, these collapse because there are no more people willing to “invest.” There a lots of people who will sell you sizzle, but that’s all it is.