Maine’s Department of Professional and Financial Regulation warned consumers late last year that the holiday shopping season and the rush to redeem gift cards or use cash gifts in the New Year make this a prime time for identify theft.
Acting Commissioner Lloyd P. LaFountain III highlighted troubling statistics and a recent national study to emphasize that identity theft continues to be a serious and escalating problem; one that poses substantial hardships for victims.
 According to the Federal Trade Commission, 8.3 million Americans were victims of identity theft in 2005.
Every year, victims struggle to recoup financial losses and repair the damage to their credit standing.
The National Association of Insurance Commissioners (NAIC) recently surveyed 500 adults to obtain information about the prevalence and impact of identity theft. 
Conducted from Nov. 16 to 22, 2007, the survey found 57 percent of U.S. adults are concerned about being a victim of identity theft during the holiday season and 66 percent believe they are more at risk when making online purchases.  Additionally, the survey found:
 • 32 percent said they were ID theft victims or knew someone who had been victimized in the past five years. Of those consumers, 46 percent said their identity theft exceeded $1,000 and 42 percent said it took three months or longer to resolve the problem.
 • If seeking insurance coverage for identity theft, 38 percent of respondents said they would look to insurance companies, 34 percent said they would look to credit card companies, and 27 percent said they would look to banks.
 “Damage caused by identity theft can not only be financially devastating, but it can monopolize a victim’s time and energy. Repairing credit reports and taking all of the other necessary steps in the aftermath of ID theft can be a heavy burden,” LaFountain said.
 Understanding the Basics of Identity Theft
Identity theft, sometimes referred to as identity fraud, is a crime that involves the unauthorized use of someone’s personal information such as name, Social Security number, credit card number or other financial account information to commit fraud or other crimes. Identity theft occurs in many forms, such as someone using stolen personal information to apply for loans or purchase items using a credit card number, along with many other fraudulent activities.
The Maine Department of Professional and Financial Regulation offers the following tips to help consumers protect their identity.
Know what’s in your wallet.  Avoid carrying a Social Security number. It provides access to personal information, and should be stored in a safe place. Carry only needed credit cards. This practice limits access to accounts in the event of a lost or stolen purse or wallet. Periodically photocopy cards and keep a record of the customer service phone numbers associated with financial accounts to speed up the process of canceling credit cards, when necessary.
 Shred, Shred, Shred. Open all mail and read carefully, even the items that appear to be junk mail could contain personal offers.  
Items with personal information, such as pre-approved credit offers, bank statements or utility bills should be shredded before being discarded.
 Be suspicious of solicitors.  Never give out personal information or a Social Security number to people unless their trustworthiness is known.
This advice applies to sharing information over the phone, in-store or online.
 Monitor revolving accounts and credit score.  Check bank, credit card and other financial account information along with credit scores at least once a year to reduce the risk of unauthorized charges or credit applications.
If a suspicious charge is suspected, immediate contact should be made with financial institutions. A free credit report, without obligation, is available once a year online at www.annualcreditreport.com.    
 Address unauthorized actions. If a new account is opened in someone’s name without permission, the consumer should immediately contact one of the three major credit bureaus – Equifax, Experian or TransUnion – and ask that a “fraud alert” be activated. Once the alert is posted, the other two bureaus will be notified, and creditors will be required to contact the consumer directly before opening new accounts or making changes to existing accounts.
Additionally, a police report should be filed and a complaint submitted to the Federal Trade Commission
 Surf the Internet Safely.  Millions of people are online at any given time; some are thieves seeking new ID theft victims. These hackers collect information from unsuspecting “pop-ups,” surfing unsecured networks or hacking into retail Web sites.
Consumers should always use secured networks, and frequently update firewall protections on their computer. Personal information should be posted rarely and with caution on networking sites.
 Consider identity theft insurance. Several insurance companies offer identity theft insurance.  It typically provides coverage for the cost of reclaiming a consumer’s financial identity, such as the expenses of placing phone calls, making copies, mailing documents, taking time off from work without pay and hiring an attorney.
As with any insurance policy, consumers should fully understand what is being purchasing and they should compare prices, coverages and deductibles among multiple insurers.