Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, credit card number, bank account number, or personal identification numbers without your permission, to commit fraud or other crimes. The FTC estimates that as many as 10 million Americans have their identities stolen each year.

The crime takes many forms. Maybe thieves rummaged through your trash, found a bank statement, and misused your checking account. Thieves may they rented an apartment using your name or got a credit card using your identity and credit history and bought expensive stereo equipment. Maybe you found out about it months later, when your loan application was rejected or when you noticed charges on your credit card statement that you didn't make.

Identity theft is serious. People whose identities have been stolen can spend hundreds of dollars and many days cleaning up the mess thieves have made of their good name and credit record.

The potential for damage, loss, and stress is considerable. 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. They may even be arrested for crimes they did not commit.