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.