Identity thieves take personal information and use it to impersonate a victim, stealing from bank accounts, establishing phony insurance policies, opening unauthorized credit cards or obtaining unauthorized bank loans.

In the recent identity theft case, it was alleged that the defendants stole the credit and debit card numbers of unsuspecting consumers via a technique known as "wardriving."

This involves using a laptop to locate accessible wireless Internet signals, which enables technologically savvy criminals to hack into the wireless computer networks of major retailers and capture card numbers, as well as password and account information.

According to the Federal Trade Commission's 2006 Identity Theft Survey Report, 8.3 million Americans were victims of identity theft in 2005 and 37 percent of those victims discovered that their identity was stolen by monitoring their accounts.

Victims of identity theft are often left with lower credit scores and can spend months, or even years, getting credit records corrected. They frequently have difficulty getting credit, obtaining loans and even finding employment.

Some insurance companies include identity theft coverage as part of their homeowners policy, selling it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy. This coverage provides the customer with reimbursement for the expenses associated with the identity and credit restoration process, including phone bills, lost wages, notary and certified mailing costs and sometimes, attorney fees (with the prior consent of the insurer).

They may also include the added services of a fraud specialist to assist and guide victims through the process of restoring and protecting their identity.

Contact your insurance agent or company representative to find out what kind of coverage is available.

To protect your hard-earned money, the I.I.I. has the following tips:

* Keep the amount of personal information in your purse or wallet to the bare minimum. Avoid carrying additional credit cards, your social security or passport unless absolutely necessary,

* Guard your credit or debit card when making purchases. Shield the card with your hand or body when using ATM machines or making long distance phone calls with phone cards,

* Always take credit, debit card or ATM receipts. Do not throw receipts into public trash containers, leave them on the counter or put them in your shopping bag where they can easily fall out or get stolen,

* Proceed with caution when shopping online. Make sure that you are buying from a reputable retailer with a secure network,

* Do not give out personal information. Whether on the phone, through the mail or over the Internet, do not give out personal information unless you have initiated the contact and you are sure you know who you are dealing with,

* Do not fall for online or e-mail scams. Be wary if you receive e-mail solicitations for personal information. In online scams like "phishing," thieves use e-mail inquiries purporting to be from financial or other online organizations in order to obtain sensitive account information,

* Monitor your accounts. Do not rely on your credit card company or bank to alert you of suspicious activity. Carefully monitor your credit and debit card statements to make sure all transactions are accurate. If you suspect a problem, contact your credit card company or bank immediately,

* Order a copy of your credit report from each of the three major credit bureaus. A law that took effect Dec. 1, 2004, entitles you to one free credit report per year, and you can pay if you want to get more frequent reports. Review your reports carefully to make sure they are accurate and include only those activities you have authorized,

* Place passwords on your credit card, bank and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, any part of your social security number or phone number or any series of consecutive numbers. If you suspect a problem with your credit card, change your password immediately, and

* Shred, shred, shred. Tear or shred any documents that contain personal information such as credit card numbers, bank statements, charge receipts or credit card applications before disposing of them.

In order to make it more difficult for identity thieves to open accounts in your name, you can also contact the fraud department of any one of the three credit reporting agencies to place a fraud alert on your credit report; by law, the agency you contact is required to contact the other two agencies.

The fraud alert tells creditors to contact you before opening any new accounts or making any changes to your existing accounts. The three major credit bureaus are Equifax, TransUnion and Experian.

If you are the victim of a crime, report it to the store in question and the police immediately. Ask for a copy of the police report. You will need it if you want to file an insurance claim or report the crime to the FTC for their assistance. Victims of identity fraud can file a complaint on the FTC Identity Theft Website or by calling 877-IDTHEFT. The FTC also offers information on the laws concerning theft of credit cards on its Consumer Protection page.