There were plenty more cases of identity theft in 2008 than the previous year according to the FTC, the authority that enforces identity theft laws. 638 confirmed data breaches occurred in 2008, which is nearly 20% more than in 2007.

These data breaches expose consumer information and occur due to the inadequate security implementations by companies that handle consumer information. They also occur due to employees from these companies simply helping themselves to the available information in their databases and either committing the crime themselves or selling the information to criminal rings.

So what’s the outlook of identity theft in 2009?

Experts predict that the schemes used in identity theft will get more sophisticated in 2009 and occur with more frequency. Conditions are seemingly perfect for scammers right now, we’re in the midst of a really bad economy, with high unemployment and foreclosure rates. So there is a lot of opportunity to expose information from consumers in these predicaments.

Expect more real estate scams that involve bogus mortgage rescue loans targeting home owners facing foreclosure. The same goes to consumers with poor credit or overwhelming credit card debt, plenty of chances there for bogus offers that promise debt consolidation at low rates and claim that poor credit history doesn’t matter.

Unemployed consumers will also run risks by being contacted by scammers with the promise of a job, when in fact all they’re doing is physhing for information.

As consumers continue to tighten up their wallet and cease unnecessary spending, thieves may resort to more conventional methods like check stealing and dumpster diving. Check out our free identity theft prevention guide for tips on how to avoid these.

Online identity theft will continue to rise and it will become the main playground for identity thieves. More websites are popping up that cater to the black market of identity information and credit for thieves.

Data breaches show no sign of slowing down, as more and more companies are not able to keep up with the high costs of implementing information security systems that can properly protect data. 638 cases of data breaches is way too many in a single year and it’s an indication that companies are struggling as much as consumers to keep up with costs.

More scams will be uncovered this year, and more methods will be revealed as well, it’s unfortunate that there aren’t better methods in place to prevent identity theft completely but with availability of information on the internet and through public records it’s nearly impossible to keep up.

While the current economic conditions cause concern for most people, experts believe that scammers will take this as a chance to exploit the many opportunities created by the economic downturn. Identity theft cases could be on the rise.

Financial Scams – Take for example the banking crisis, ridden with folds, mergers and takeovers and the constant news coverage that keeps consumers on the alert. This gives scammers the opportunity to send out phishing e-mails claiming that personal account information is needed because of the many changes taking place in the banking sector. McAfee, the virus protection company began seeing phishing reports related to the crisis shortly after the failure and sale of Washington Mutual Bank in late September of 2008.

Job Scams – Thieves may also run their scams in the job sectors, with the numbers of companies folding under economic pressure and laying off so many workers. Identity thieves once again will phish for those unsuspecting victims who are hoping to get a call from a job recruiter, with the intention of simply getting the candidates to provide personal information.

Foreclosure/Mortgage Rescue Scams – The number of foreclosures will continue through 2009 and this is another area where scammers will continue to take advantage of desperate home owners who are trying to save their homes from repossession, especially if the home has retained some equity value. Scams in this area may come in the form of mail or even phone calls.

Phony IRS Scams – These scams will almost always occur in the form of email, since it is more difficult for scammers to use regular mail and too risky. The premise of the scam is always the same, you must follow links included in the email to update your records or to sort out a problem in which you owe back taxes. The phishing scams are always made to sound urgent and severe consequences are suggested if immediate action is  not taken.

Credit Debt Consolidation Scams – Once again due to the bad economy, some of us may be inclined to use our credit cards to get us out of tough times, but when the balances begin to grow and payments are not affordable anymore, you may consider consolidating your credit card balances. Many scammers are aware that these are often the opportunities that consumers seek in bad economic times to avoid the high interest rates, and may take the first step in contacting consumers about great consolidation offers that promise to repay their debt for pennies on the dollar.

Whatever approach the identity thieves take, please consider that if you did not request for the information you must proceed with care. Particularly if the offers come to you via email. For more information on email and other online security measures review our related articles.

Identity theft is one of the fastest growing crime trends in the US according to the FBI. Typically the victims do not actually find out their identities have been stolen until it is too late, and their good names have been ruined and their futures jeopardized. Identity theft has not always been preventable but in recent years a new industry has emerged to answer the call for the need of a centralized system to secure people’s identities.

Identity theft is a real crime and yet there have been relatively few convictions in comparison to the number of identity theft crimes committed every year. When your identity is stolen and your credit vandalized your chances of getting employment, getting loans and credit are significantly diminished. You also run the risk of being incriminated for crimes you didn’t commit if fake ids containing your information are found at crime scenes, the list goes on and on.

This is why identity theft protection services have become a big necessity for consumers. These services work for you 24/7 making sure that even if an identity thief does get a hold of your personal information, they can’t actually use it. For a detailed explanation of the security features used to protect your identity, be sure to read our identity theft protection service reviews.

In recent years there has been a lot of hype about identity theft and the newly popular identity theft prevention services that automate id protection for subscribers. This industry is still fairly new but it is only new to most consumers, while corporations and government entities have been employing these services for years. The best and most practical way anyone can protect their identity from this horrible crime is to employ the services of the experts, which at this time are still relatively inexpensive.

Identity theft prevention, in the 21st century, is a big responsibility not an optional measure. Consider all the places where you have at one point in your life given your personal information, specifically your social security number. The DMV has it, your doctor’s office has it, your employer’s HR department has it, your college or university, your insurance company, your landlord or mortgage company etc. Having distributed your social security number to so many places with the trust that they’ll handle it appropriately is all the protection you assumed when you volunteered your personal information.

It is these organizations, the financial and medical institutions that are being hacked and farmed for the information of their members and subscribers. These are called “data breaches” and there are hundreds of these incidents every year exposing millions of personal records and increasing the chances that more and more people will become victims of identity theft.

There are many estimates for the year 2007 all reporting different numbers, but around 160 million personal records were exposed during this year alone from several data breach incidents. That was a record year, and in 2008 no significant action has been taken at a high level, in the form of legislation to force these organizations to adopt stronger measures to secure personal records.

So when you see ads for Life Lock, Identity Guard, Identity Truth, Trusted ID or any other providers of identity theft prevention services, it may sound to you like they’re just yelling “the sky is falling”, but the fact is your information is out there and even if you’re doing everything in your power to protect it, how well it is handled by anyone else in possession of it is completely out of your control.

Whether you take it as media hype, or scare tactics, identity theft is a real threat and it is occurring at alarming rates across the U.S. We’re no longer referring to the hijacking of your credit card number and having charges run up on it, those incidents are relatively simple to fix today. By law you’re only responsible for the first $50 dollars and even then you’re likely not to have to pay that amount either. We’re actually referring to your social security number; this is where an identity theft criminal can do the most damage.

The thief can open more than credit accounts, they could buy a house under your identity, or a car, they could even get social security benefits, and they can also get medical care under your identity which can complicate your life to an extent for which there’s yet little resolution to favor the victim.

You don’t have to be at fault for any of this to happen to you, your information can be given to these identity theft criminals by the people you entrusted your information to. Phishing scams are still prevalent and even though you know not to give your personal information over the phone or email, your doctor’s office clerk may not be so hard to dupe.

Public records are constantly mined for personal information and because they’re public records they are free to access, again there’s no legislation that can legally stop this madness so it’s all on the individual. Public records represent anything from real estate deeds, to lawsuits, bankruptcy records, divorce records, small claims court, city and county business registration offices etc. All of which are available to anyone and everyone. So what you consider private information is easily available to whoever needs to know it bad enough.

How to stop identity theft

Let’s be perfectly clear about something else, you can in fact do much of what an identity theft prevention service provider can do, on your own, and many of these tips are available on our free identity theft protection guide. The best way to stop identity theft from happening to you is to be proactive. Check your credit often, never volunteer personal information to anyone you don’t know or trust, keep your sensitive information filed safely at home and set fraud alerts on your credit file. These are just a few of the things everyone should do. For a complete detailed guide on how to protect against identity theft download our free guide.

You can do a lot on your own to stop identity theft, but because it is not your full time job to look after your own identity, it becomes less than practical to monitor your own credit and social security number around the clock. So when you have a protection plan dedicated to watching your information and making sure it is not being traded in the financial black markets, you can relax knowing that you have protection 24×7 and that’s the function of the identity theft protection services available today. Also because all these memberships come with service guarantees and insurance policies, in case your identity does get stolen, you can rest easy knowing that they’ll spend the necessary funds and work hard to restore your identity and clear your name.

Review identity theft protection plans now!