While identity thieves are using technology to steal personal and financial information and to use that information for fraud, many consumers, financial institutions and businesses are fighting back by minimizing the use of Social Security numbers in account information and by monitoring and notifying customers of possible fraudulent activity more quickly. While consumers are monitoring their accounts more frequently using technologies such as on-line banking and mobile alerts, consumer education on protection and prevention measures such as keeping anti-virus software up to date will continue to be important as businesses and consumers continue to learn how to prevent identity theft.

Although the latest survey by Javelin Strategy and Research showed that the average cost to consumers of identity fraud cases fell in 2009, what consumers really want to know is how to prevent identity theft in the first place.

There are some things that one can do. The fact is, increased vigilance by consumers, businesses and government agencies already appear to be having an impact on the identity theft problem. Many organizations, especially banks and financial institutions have started offering fraud monitoring services, which can sometimes detect account access and payment anomalies, as well as dispute resolution and identity theft education programs, in most cases offering these services free to customers. Mobile banking solutions allow account monitoring, alerting customers in near-real-time of account activity and possible fraud. These partnerships and increased activism on the behalf of consumers resulted in consumer out of pocket costs dropping to an all-time low of $373 in 2009.

How to prevent identity theft? The Javelin study outlines some of the areas where individuals can focus on how to prevent identity theft in the first place.

Whenever possible, protect sensitive information contained on paper documents. Eliminate as many paper statements as possible by requesting electronic statements; Use post office boxes to mail payments rather than placing mail containing checks in an unlocked mailbox; Secure all documents containing personal information such as social security numbers or account numbers in a locked storage box, and purchase and use a paper shredder.

Install anti-virus software on your computer and keep it updated. Be sure to password protect any files that contain personal and financial records using unique or hard-to-guess passwords. Don’t ever give out personal or account information on-line or over the phone, and don’t publish your personal information on social networking sites such as FaceBook.

Check your bank and credit card activity periodically for transactions you don’t recognize or remember – and sign up for alerts whenever possible. The javelin study found that 43 percent of all reported identity fraud cases were spotted by consumers self-monitoring their accounts and those who use more timely electronic methods to detect fraud experience lower average out-of-pocket costs.

Utilize an identity theft protection service to help detect the fraudulent establishment of new accounts in your name. Identity thieves are increasingly using stolen information to open new credit card accounts, on-line and e-mail payment accounts and cell-phone accounts.

In November 2009, Javelin conducted telephone interviews with more than 5,000 U.S. consumers to identify and track the methods used by criminals and the impact of identity theft on American consumers and businesses. Almost 4,800 U.S. adults, including 487 victims of identity theft, were surveyed via a 50-question phone interview to gain insight into this crime, its effects on its victims, and how the survey findings can help consumers most effectively avoid becoming victims of identity theft.

In addition to providing a detailed picture of the crime of identity theft in the U.S. for 2009, the survey reinforced the idea that consumers can learn how to prevent identity theft and play a key role in detecting and resolving identity fraud committed against them. The report found that more consumers are pursuing legal action, with nearly 50 percent of all victims filing police reports. Increased consumer awareness of how to prevent identity theft has empowered consumers to fight back, leading to more arrests, prosecutions and convictions. More consumers than ever before are actively monitoring their credit and financial accounts for suspicious activity and fraud and are acting faster when identity theft is detected.