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It's a fact: Every 3.5 seconds, someone becomes a victim of identity theft. That's why watching over your credit reports is still extremely important, because you never know when a criminal might use - or be using - your personal information to destroy your financial stability.

In 2007, more than 127 million records of data were exposed through security breaches1 Retail stores, credit card issuers, research firms, government agencies and the like keep millions of consumer records containing personal information. When this information is stolen or illegally sold by company employees to identity thieves, hackers or "data brokers," consumer information is put at risk. And with the yearly increase in these security breaches up 180 percent since 2005, it's no wonder some of the largest companies in the world are acquiring technology to strengthen their data loss protection.

NEW LEGISLATION HELPS... BUT IS NOT A CURE-ALL
As of May 2008, 42 states have introduced security breach legislation that requires companies to notify the public in the event of a security breach involving personal consumer information.2 But even if you know your information might be exposed to identity thieves, what are you supposed to do next?

FIRST THINGS FIRST — ARE YOU REALLY AT RISK?
Everyone is at risk for identity theft. It doesn't take a security breach for your personal information to be exposed. These days, identity thieves use online scams, telemarketing techniques, and even Internet chat rooms where consumer data is posted for sale or traded. From piling up debt in your name, to opening new accounts or even getting a mortgage using your identity, it's easier than ever for identity thieves to destroy your good name.

PROTECTING YOURSELF AND YOUR CREDIT
Consumers have come to recognize they are as responsible as credit card companies, merchants, retailers and credit card issuers for preventing fraud from happening.3 It's important not to wait for a security breach to occur before you start protecting your credit. What's the best way to do that? Set up a system today - so you're already prepared if an identity thief should get a hold of your information.

• Credit Report Check. Keep a constant eye on your credit report. If you know what's being added (and deleted) from your report, you'll notice any suspicious activity or signs that someone might be using your name to gain credit.

• Credit Monitoring. Use the credit monitoring benefit provided by this service, so you'll be alerted to certain changes made to your credit file - such as negative information or the addition of new accounts and loans.

• What's Your Credit Score? A sharp decrease in your score, without any activity by you, could mean that an identity thief is up to no good. Just like your credit report, you should keep a constant eye on your credit score.

• Check Your Statements. When you receive your bank, credit, debit, gas and other statements, check them carefully for any transactions that don't look familiar to you. These types of accounts are where an identity thief may strike first.

SECURITY BREACH: ACTIONS TO TAKE
If you are notified that your records have been part of a security breach, don't panic - there are specific actions to take in order to best protect yourself.

• Existing Credit or Debit Card Risk Inform your credit or debit card companies immediately. Most likely they will cancel your account and provide you with a new card and account number.

• Social Security Number Risk There are no statements you can check for the use of your SSN, so you must continue to check your credit report regularly. If credit cards arrive in the mail you didn't apply for, or if you're denied credit when you know you have a good credit score, these are signs you have been the victim of new accounts fraud.

• Identification Document Risk If your driver's license or another type of government document was involved in the breach, contact the issuing agency and get their recommendations for actions to take. They might want to place a flag on your file to prevent an identity thief from getting a license or other document in your name.

1InformationWeek.com; December 2007; Record Number of Data Breaches Reported in 2007

2NCSL.com; January 2008; State Security Breach Notification Laws

3Javelin Strategy & Research: February 2008 research study