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Credit fraud and identity theft is one of the most serious and fastest growing crimes today.

Credit counsellors have compiled some information to help you overcome some of the more common problems and pitfalls of credit fraud and identity theft.

In its simplest form, credit fraud involves someone else's use of your credit to make purchases or cash advances. Though often damaging, such cases are normally stopped when you report your card as missing.

Other types of credit fraud involve your account information but not your physical card. Such cases may be more damaging, since you may not realize anything is wrong until you notice unfamiliar charges on your monthly statement. Knowledge of your account number, expiration date, Social Security number and billing address may be much more valuable to a thief than the card itself. In the most advanced form of credit fraud -- identity theft -- someone can use your personal information to take over your credit accounts and open new ones.

There are several ways for someone to get your credit card information. They may get it from the card itself, find it on receipts or monthly statements you've thrown away, steal it from your mailbox, or get it through an Internet- or telephone-based scam. The following tips will minimize your risk:

• Whether on the phone, by mail, or on the Internet, never give anyone your card number, Social Security number, or other personal information for a purpose you don't understand.
• Treat your credit cards like cash; don't leave them in unsecure areas.
• Shred any documents that show your credit card information, Social Security number, or driver's license number before throwing them away.
• Destroy unwanted offers of pre-approved credit cards before throwing them away.
• When you receive a new card, sign and activate it immediately.
• When choosing a password for an account, avoid such easily obtainable information as your mother's maiden name.
• If you don't receive your credit card statement on time, notify the company immediately.
• Don't carry your Social Security card. Keep it in a safe place.
• Memorize your PIN numbers instead of carrying them with you.
• Don't write your credit card number on checks.
• Get rid of credit cards you don't need.
• Use credit monitoring to monitor your credit report for potential signs of fraud.

If you suspect credit fraud, immediate action is imperative.

Because credit card companies must limit consumer responsibility to $50 in most cases of credit fraud, and because many new cards include "zero responsibility" protection, some people think there's no reason to worry about credit fraud. But in its most advanced form -- identity theft -- credit fraud can cause wide-ranging long-term problems. Identity thieves use your personal information to take over your credit accounts and open new ones. They may even use your good credit to get a job, take out a car loan, or rent an apartment. Identity theft, an increasingly common form of credit fraud, occurs when someone assumes your name and other personal information to take over your credit accounts, open new ones, get a job, take out a loan, rent an apartment, or otherwise benefit at your expense. Because it often involves no physical theft, identity theft may not be noticed by its victims until significant damage has been done.

Identity theft takes several forms. Using your account number, expiration date, Social Security number, and billing address, an identity thief may contact your credit card company and change the address on your account. The thief may then make large purchases on the phone or over the Internet. Because you won't receive statements, it might take weeks or months for you to suspect trouble.

A thief may also use your information to apply for a new credit card. Unless you check your credit report, you may not be aware of such a new account until it becomes delinquent. In some cases, identity thieves have even filed for bankruptcy in the victim's name to avoid paying the debts run up on such an account.

Other types of identity theft don't involve credit cards. Someone with a bad credit rating may use your personal information to get a car loan, acquire telephone or other utility service, or open a bank account in your name.

Any type of identity theft can severely damage your credit rating. For tips on keeping your information away from identity thieves, see if you've been a victim of credit. If you think you might be a victim, see if you've been a victim of identity theft.

This is one of the prime reasons why you should obtain a copy of your credit report on an annual basis and make sure nobody else is using your credit!

Information in your credit report can influence most every aspect of your life. You have the right to know what is being reported about you to loan processors and other creditors. By staying informed and updated about the information in your online credit report you will be able to maintain constant vigilance of your credit history. This in turn will provide you a head start on identifying potential fraud or errors that could prevent you from getting the credit you deserve.

Keep track of new entries on your online credit report so you can quickly react to fraud or inaccuracies. However, you would not wish to have to request a new report every time you want to apply for credit.

Credit monitoring services will be able to help you for that purpose. Their service includes obtaining your online credit report every month, analyzing it, and tracking any changes which have occurred.

Credit monitoring service companies will advise you whether any of your dormant accounts have been activated, whether there is any information which might indicate that someone is attempting to defraud or impersonate you, whether there are any applications for, or issuance of, new credit cards or reported loans, and who has recently been looking at your online credit report. They also monitor new data sources automatically and alert you to any issue they find.

By signing up for credit monitoring service, you usually receive a free copy of your online credit report...so you know what your online credit report says about you today. You will also get an online credit report explanation form so you understand what your online credit report means to you and to the companies you already have credit with. In addition, you will be able to find a toll free phone number and forms for you to use to have possible inaccurate information investigated at no charge.