An estimated 300,000 fewer Americans fell victim to identity theft in 2007 than in 2006, according to research from Javelin Strategy & Research.

Overall identity fraud in the U.S. declined 12 percent in 2007, thanks to greater consumer awareness and vigilance, as well as improvements in systems and practices by companies that manage personal information.

However, that doesn’t mean you should stop protecting your personal information.

The Six Most Effective Ways to Protect Your Identity
It may be a cliché, but “Better Safe than Sorry” is sage advice when it comes to protecting your personal information. Putting these safety tips into practice can pay off for you – instead of the criminals:

• Move your financial transactions online and turn off paper bills, statements, and checks (including paychecks), replacing them with electronic versions. Avoid writing checks and placing the bill payment in your unsecured mailbox. Instead, pay bills online.
• Frequently monitor your accounts online at bank and credit card websites. Individuals who do this uncover fraud the fastest.
• Review your credit information no less than once per year. You can do this for free at www.annualcreditreport.com.
• Never provide sensitive financial or personal data such as passwords, PINs or account numbers over the phone unless you call directly to a verified and trusted location.
• Install and regularly update firewall, browser, security, anti-spyware and anti-virus software on your personal computer and keep operating systems up to date.
• Reduce unnecessary access to personal information wherever possible. For example, don’t carry Social Security cards, checks or credit cards you’re not currently using, and don’t leave sensitive documents out in the open.

Criminals Turn to Phone & Mail
As consumers shift more financial transactions to secure online channels and become savvier to Internet fraud schemes, criminals are turning to different methods. Mail and telephone ID fraud grew from a mere 3 percent of fraud in 2006 to an alarming 40 percent in 2007.

“…Thieves are getting creative and leveraging new techniques to commit fraud, so Americans need to be as diligent as ever in protecting their personal information.”
~ James Van Dyke, president and founder, Javelin Strategy & Research

One technique that’s sharply on the rise is vishing. Criminals posing as representatives of legitimate companies contact potential victims via e-mail or phone, asking the customer to call them to resolve an account issue. What these unsuspecting victims don’t know is that the number provided is for a phony call center created using inexpensive VoIP (Voice over Internet Protocol) technology, and by calling they have just unwittingly handed over their personal information to criminals.

> If you'd like to start receiving and paying bills online to help reduce your chances of becoming an identity fraud victim, contact your bank or visit www.ebillplace.com.