Identity theft is a criminal offense that occurs when someone uses your personal information without your knowledge to commit fraud. Someone can steal your identity by co-opting your name, Social Security Number, credit card number(s), driver's license number, bank account number(s), or any other piece of your personal information for fraudulent use.

Identity thieves may open a new credit card account using your name, date of birth, and Social Security Number. They may also call your credit card issuer and change the mailing address on your account, preventing you from seeing the fraudulent charges. Similarly, identity thieves may open a bank account in your name and write bad checks or establish services in your name, such as mobile phone accounts.

These delinquent accounts register on your credit report, and the burden is on you to challenge the fraudulent activity and restore your good name. In the words of Privacy Rights Clearinghouse, a leading consumer advocacy group, "Identity theft is the only crime where the suspect is presumed innocent before proven guilty; and the victim is guilty until found innocent."

In today's world of electronic commerce and database-driven information systems, businesses have become custodians of large amounts of detailed personal data. With ID theft ranking as America's fastest growing crime, there is mounting concern about the consequences of data breaches. A company's confidential customer data is a prime target for hackers and identity thieves who can wreak untold financial and personal havoc.

Facts and figures

• Approximately 10 million Americans are victims of identity theft each year, and the number of cases is continuously on the rise despite increasing local, state and federal efforts to combat this crime.
• Recent surveys show that the crime penetrates all levels of society, affecting all ranges of age, education and income.
• Sixteen percent of adults say they have had their credit or debit card used fraudulently by unknown parties.
• The Federal Trade Commission reports that identity theft is the #1 consumer complaint in America today, with more than 685,000 complaints received in 2005.
• Losses to businesses nationwide totaled more than $50 billion, while victims themselves suffered staggering $680 million losses.
• Victims spent almost 300 million hours resolving the problems — the equivalent of over 3,700 average lifetimes of work.