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Washington, Jun 29, 2004 - Chances are that you probably protect your car and your home better than you protect your personal data. However, recovering from having your identity stolen and your personal information used illegally can take years.

It is important that we know how to protect ourselves from identity theft and know where to turn for help when putting the pieces back together.

"Identity theft is one of the fastest growing crimes in America. In fact, it is the most common complaint the Federal Trade Commission receives from consumers in all fifty states," said Rep. Ed Royce.

The list of what can happen to you and your family when someone misuses your personal information seems endless: trashed credit records, withdrawals from bank accounts or Social Security funds, change of address and phone numbers, refusal of loans for houses or cars, loss of job opportunities, or even being arrested for crimes not committed.

According to the Federal Trade Commission (FTC), nearly 10 million Americans were victimized by identity thieves in one year costing consumers and businesses over $50 billion. In addition, consumers spent 300 million hours trying to repair damage to their credit records.

As a member of the House Financial Services Committee, Congressman Royce was involved in getting the Fair and Accurate Credit Transactions Act signed into law. As a result, beginning December 1, 2004, Californians will be able to get an annual credit report free, with one phone call.

Getting a copy of your credit report won't protect you from theft, but it will allow you to keep tabs on your credit activities and report any suspicious actions. The law requires that the FTC establish a standardized method, such as a website or toll-free telephone number, so that consumers can obtain their report from all three major credit reporting agencies for free, once every 12 months upon request.

Currently, consumers must go to each of the three credit reporting agencies - Equifax, Experian, and TransUnion - separately, paying $10 for each copy of their report.

The law also took additional steps to protect consumers and confront the rapidly growing problem of identity theft. It requires that merchants leave all but the last five digits of a credit card number off store receipts. This will ensure that these little slips of paper that people often throw away do not contain their full credit card number, a key to their financial identity.

In addition to standardizing the method for obtaining credit reports, the law also creates a national system of fraud detection so that victims will only have to make one phone call to report fraud, receive advice, set off a nationwide fraud alert, and protect their credit standing.

"Your identity is one of your most important possessions. With this new law, consumers now have even more tools to fight back," said Royce.

There are important precautions that you can take to protect your name and your credit:

§ Shred your sensitive documents, like credit card statements or bills, to prevent thieves from digging through the trash;
§ Ask companies, like utilities and insurers, why they need your Social Security number before giving it to them, as most places probably don't need it even though they ask for it;
§ Make sure that your boss or human resources department safely disposes of your personal documents;
§ Don't use automatic log-in features for your personal computer and always log-out when you are finished; and
§ When companies ask for your mother's maiden name as a password, offer an alternative since this is very easy for thieves to figure out.

For more information on identity theft visit www.consumer.gov/idtheft or call 1-877-IDTHEFT (438-4338).