Identity theft is an area where you experience a gambit of emotions and questions. We’ve attempted to answer many of the most common questions here.

I think my identity/account/credit card information has been stolen, what do I do now?

Contact the credit card companies and bank immediately to report your concerns. Contact the credit bureaus to put a hold on your credit to prevent new accounts being opened and then work to find all areas that have been affected or are vulnerable to report the fraud. Prevent additional fraud by reporting and changing information.

I’m the victim of fraud – how much will I have to pay?

Legally the most you can be charged for fraudulent activity on your account is $50, but that is on each account and can add up quickly. While you’re only liable for $50 on each account, the cost of the fraud is pushed back to the consumers as well.

The credit card company “charges back” the fraudulent purchases to the seller. The seller expects some fraud over the course of business and builds that cost into his prices. In turn, we all wind up paying higher prices to cover identity theft. Thieves are only rarely caught in these sorts of situations.

How do I find out if I’m a victim of identity fraud?

Check your credit report first to determine any unusual activity or new accounts opened in your name. Then pick through your credit card and bank statements looking for fraudulent charges or withdrawals. Be sure to look at all amounts – most thieves now realize that smaller dollar amounts will not trigger a response from you the way larger amounts do.

How can I prevent identity theft?

There are some forms of identity theft you can’t do much to prevent. A loss or leak of data from your employer or alma mater is unavoidable for you and you can only manage the aftermath by checking your accounts and credit report regularly. Other forms of theft can be avoided by using high-quality firewalls, shredding documents that have sensitive information, switching to online bank statements, changing your online passwords periodically and never buying things online or over the phone without double-checking the authenticity of the site or contact.

Why does someone want my information anyhow?

There are two major reasons identifications are stolen. The first is to offer a new life to someone else. Thousands of people are looking for identities inside the United States and your Social Security number offer them the information they need to make a new passport, open a bank account and obtain a driver’s license. If that individual is careful to be paid in cash and not actually use the credit to open accounts, he can easily remain hidden for years under his false identity.

The second reason, and by far the most common, thieves want your information is so that they can use the money that your credit represents. They can charge things to your credit cards or open new cards in their name. In the most extreme cases, they can buy a car or other large item without you being aware of it until a collector starts calling or the bill comes in. Don’t count on bills, however, as the thief can easily have those sent somewhere other than to your home making it especially challenging to stay informed. Monitoring your credit report is the most effective way to learn of these charges and accounts.