Banking and investing … the smart way: protecting your assets and investments has never been more of a challenge. On one hand, with the advent of computer technology and the internet, banking and investment transactions that used to take place only in secured, specialized areas are now accessible to virtually anyone, and although this progress definitely has its advantages, it can also come with dreadful consequences

Latino Leaders: The National Magazine of the Successful American Latino, Oct-Nov, 2005 by Wendy Pedrero

On the other hand, the battering effects of a shaky economy, followed by years of corporate fund mishandling, has wielded devastating blows to many hard worker's earnings as well as their retirement nests.

Identity Theft Your Worst Nightmare Coming True

Identity Theft is welt underway to becoming number one crime in America. Each many Americans fall victim to its predatory claws. Businesses can also fall to it. Identity theft occurs when someone steals key personal or business information and uses that information to commit theft or fraud. It is a serious crime. People whose identities have been stolen can spend months or years--and their hard-earned money--cleaning up the mess thieves have made of their good name and credit record.

As a modern day crime, identity theft has become so widespread that major banking institutions are beginning to invest a large amount of time, money and effort in developing new technology to prevent and deter it from spreading. Banks and Lending houses are also creating specific initiatives to better inform consumers about this heinous crime in hopes that public knowledge will diminish the chances of it happening. One such company, Citigroup, a top financial services company with some 200 million customer accounts in more than 100 countries, is at the forefront of such development. Here is their explanation of this pesky problem:

What Is Identity Theft?

Someone committing personal identity theft may obtain a person's name, Social Security number, credit card numbers and other information. This information is used to assume a person's identity and fraudulently charge merchandise, obtain cash from accounts, take out loans or otherwise commit theft. Similarly, someone who steals a business's identity, including its name, address and taxpayer identification number can use this information to obtain money or goods. As a business owner, you should ensure that your business and personal credit are secured and not stolen.

Guarding Against Identity Theft

If you are an employer, you must guard against potential identity theft of your own identity as as that of your employees. Fighting identity theft begins with properly safeguarding personal and business information. As an employer, this means safeguarding your business records, your personal records and your employee records and divulging sensitive personnel information only to trusted third parties such as payroll services and credit card companies. In addition, you should make sure your employees who handle sensitive personal information understand the harsh penalties associated with revealing .it to unauthorized people.

Identity Theft Warning Signs

Warning signs of personal identity theft include unauthorized credit charges or telephone charges, unauthorized change of your address for credit card statements, phone calls from creditors about charges you didn't make as well as statements in the mail for a new card you did not request. Any one of these signs should alert you or your employees that identity theft may have occurred.

Warning signs of identity-related business fraud include invoices for unfamiliar goods or services, unexplained charges on a business credit card, a notice from a collection agency about an unfamiliar debt, unusual telephone charges and an unauthorized change of your address.

Ramon Cepeda, Vice President of Commercial Banking at LaSalle Bank says that computer transactions are always at high risk for identity theft. "A lot of people do not have virus protection in their computers, and that's one of the ways that it can start. Another thing is the fact that there are a lot of email hoaxes out there. For example, here at La Salle, and other hanks as well, we have been targeted by email hoaxes, where our clients receive email [supposedly] from the bank asking them for their personal information when in fact the bank has never sent anything out." Another common culprit, adds Ramon, is careless handling of mail. "A lot of people steal your mail and they open up credit accounts or even checking accounts in your name and then write out had checks with your information." Cepeda recommends that all junk mail be disposed of by either tearing it up or shredding it and never throwing it away intact. 'You really need to destroy it, because that's a real easy way for someone to go through your trash and grab an application for a credit card that you didn't want and fill it out and send it to their home and then they'll have a credit card in your name."

When identity theft happens, prompt action can help limit the negative consequences. Here is a checklist of things that you should do in the event you or an employee of your business falls victim to identity theft:

* Contact your banking institution immediately.

* Contact the credit bureaus. For personal identity theft, you should contact the three major credit bureaus: Equifax, Experian and TransUnion. For business identity theft, you should contact Experian and Dun & Bradstreet.

* Contact your creditors, i.e. credit card companies, mortgage companies and other finance companies with whom you have loans, credit cards or lines of credit.