Identity thieves can use your personal information to take over your Savings or Checking accounts or open new ones and these damages do not have limits. They may even use your good name to get a job, take out a car loan, or rent an apartment. Here is how to protect yourself and your family.

First things first, let us define what Identity Theft is. Identity theft occurs when a criminal uses your personal information to steal your identity. They will use your identity to apply for credit and open bank accounts. They take your money and do not pay the bills they rack up in your good name. They bounce checks in your name. They ruin your credit and they are laughing all the way to the bank while you sit dumbfounded, wondering how it could have happened. Like most of us, you thought you were protected by the banks and credit card companies you trusted to keep your information safe.

Sorry to inform you but you are the first line of defense. Here is what you need to know to protect yourself.

Do not give out personal information, especially your Social Security number or bank account numbers, unless you have initiated the contact. This seems obvious but thieves will pose as representatives of legitimate companies with which you do business and request you 'verify personal information.' In "verifying" it, you are actually giving it to the caller. Instead, tell the caller you're busy and will have to call them back, then ask for a name and contact phone number.

Usually, when you ask the scammer for a call back number they will make excuses as to why you cannot call them back or they will just hang up. Even if they give you a phone number, do not use it to call them back. Instead, use your billing statements or a phone book to get the number of the business, call and verify the caller and his or her purpose for contacting you.

There are several types of identity theft you need to protect against.

Account takeover identity theft: This refers to the type of situation where an imposter uses the stolen personal information to gain access to your existing accounts. Often the identity thief will use the stolen identity to acquire even more credit products by changing your address so that you never see the credit card bills that the thief runs up.

True name identity theft: This means that the thief uses personal information to open new accounts. The thief might open a new credit card account, establish cellular phone service, or open a new checking account in order to obtain blank checks. The Internet has made it easier for an identity thief to use the information they've stolen because transactions can be made without any real verification of someone's identity. All a thief really needs today is a series of correct numbers to complete the crime.

Criminal identity theft: The thief uses your personal information to assume your identity. The thief gives your name and presents counterfeit ID to law enforcement when questioned or arrested for a crime. In a worst-case scenario, you could be prosecuted for the actions of the thief who has stolen your identity.

Internet identity theft: Do not give personal information to websites that are not using SSL (Secure Sockets Layer) to transfer the information. Secure sites are noted by the the "s" added to the usual http, preceding the website address. It will look like this: https. These sites will encrypt all information between your computer and the site so it is nearly impossibleto steal it. Legitimate sites will also have a Privacy Policy posted that states how your personal information will be used. If the site states that they might share your information with unnamed "third parties," you have no guarantee that the "third parties" will protect your information from identity theft.

Here are some other tips:

Use a "confetti" shredder for all paper and plastic that displays your personal information. This includes statements, credit card solicitations, junk mail that has your name and address, and expired cards of all kinds, including not only credit cards but also insurance cards, medical cards and even library cards. If you receive magazine subscriptions, remove the address pages for the shredder before throwing the magazines out. There should be nothing in your trash that identifies you that is not shredded.

Although these and other precautions can help reduce the risk of identity theft, vigilance can also go a long way towards protecting yourself. Watch your monthly billing and bank statements. Missing statements can be a sign that someone has changed your billing address without your knowledge or has stolen your mail right from the mail box. Even junk mail can be telling. If you suddenly get multiple catalogs or brochures for products you have never purchased, this could be a sign that someone else is using your name to buy from those merchants.

Experts also recommend reviewing your credit report regularly. In the United States, law allows each person one free copy yearly from each credit agency: Experian, Equifax and TransUnion. You can obtain all three free credit reports at once, or get one free copy every four months by rotating agencies. There is only one FTC-approved website for obtaining free credit reports, and it has no strings attached. Search for "free credit reports" and find the government approved website to apply.

Be aware of the double-dip scam as well. By applying for welfare or other forms of social assistance the identity thief can develop a way of getting food and some of the bills covered under assistance while maintaining a steady job in their real name. This type of identity theft can lead to criminal charges being brought against you, the victim, by the government agency that has been defrauded, leaving the thief to continue on with his life without interruption or legal problems.

Become educated about identity theft. You can minimize your risk by managing you personal credit information wisely, cautiously and with heightened diligence and sensitivity with the right information.