Identity theft can be a dirty business, and if you’ve never heard of dumpster diving, then the next time you’re surprised by an old man emerging from a dumpster full of garbage, you might just be encountering your first-ever identity thief.

I was first introduced to dumpster diving many years ago, when a member of a notorious underground hacking group explained that there were other ways to rip off someone’s identity, without using technology.

Rather than spending hours in front of his computer trying to crack open back doors into remote computer networks, he would simply climb into the dumpsters outside a given company’s main offices. Once there, he would search for readable hard copies of any information that might give him an inside track on how the company works, and more importantly, any information he could dig up on how to get system access.

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Planning a vacation this year? And thinking about bringing along a credit card or two for company?

Now imagine that your once-in-a-lifetime trip to Rome is interrupted by a pickpocket who makes off with your credit cards. Do you have a plan for a situation like this? Obviously, you need to act fast to prevent credit card fraud.

What number do you call to cancel your card, and would you even be able to tell them the number of the stolen card? These are just some of the obvious risks that we never seem to worry about until it’s too late.

But knowing the kinds of problems and pitfalls that are out there can make the difference.

Here is a run-down of the kinds of credit card frauds and scams you might come across, at home or in your travels, and what you can do to avoid them.

Keyloggers are malicious programs installed on your computer either because you opened an infected file, downloaded an infected file or visited an infected web site. Once installed, the keylogger can steal credit card numbers and account passwords.

Theft at work is still a major problem, and dishonest co-workers can simply open your purse or wallet, take out your credit cards, write down a card number, expiration date, and card verification number and then replace the cards.

Skimming is a growing problem, especially in supermarkets and restaurants, where thieves use a rigged credit card reader to copy the contents of your debit or credit card.
Phishing uses increasingly clever emails that will try to trick you into giving up a bank account password.

Pharming relies on bogus web sites created to look like those of your bank, credit union or credit card company in the hope that you’ll be careless enough to reveal some priceless information.

Bogus web sites like those that sell the latest gadgets and must-haves for iPhones, for example, will soon be popping up everywhere. Beware…those sites are usually just traps designed to get you to give up your credit card number.

As usual, there are plenty of things you can do to protect yourself from credit card fraud and identity theft. And for the most part, they boil down to simply using common sense:

- Keep credit cards to a minimum, and when you go out, take only the one you need.

- Check your statements regularly to detect any suspicious charges.

- Monitor your credit reports to get early warning of attempts to obtain new credit under your name.

- Never buy from spam e-mail, as it’s often just an attempt to steal your credit card number.

- Don’t shop on web sites you don’t know.

- If you’re not familiar with a store or restaurant, when possible, pay with cash instead of credit cards to avoid the risk of skimming.

- Keep a photocopy of all credit cards so you can quickly respond if your card is stolen. Also, keep a list of emergency phone numbers for your card companies.

- Report any unauthorized transactions immediately. This is essential if you want to make sure you’re not held responsible for unauthorized charges.

- Opt out from pre-approved offers to minimize the risk of these offers being intercepted by thieves.

- Shred pre-approved offers so an imposter can’t use them to apply for new credit in your name.

You are your own credit watch dog, and common sense may be your most valuable weapon against credit card fraud.

Tech magazine eWeek just came out with its 12 Ways To Be A Security Idiot, and I thought for all you folks out there struggling to make your next big security goof, eWeek’s advice might help you along the way.

Their recommendations for achieving a state of idiothood included (and I’m paraphrasing):

- Life is always easier when your firewall is turned off.

- Don’t worry about storing sensitive information unprotected on your laptop. After all, who’s going to want your laptop?

- When a Nigerian prince wants to give you 30% of his father’s $20 million illegal stash plundered from the nation’s oilfields, and all he wants in return is your bank account information, what are you waiting for? He’s a prince, for crying out loud!

- The easiest password to remember is password, and no-one’s going to think you’re dumb enough to use such an obvious password, right?

- Your computer doesn’t need up-to-date virus protection because it’s never been sick a day in its life.

So go out there and keep getting it wrong. Because without you there's no us.

The ghost of Captain Charles Cunningham Boycott still walks, at least according to some interesting new data from research firm Javelin that follows the TJ Maxx data heist.
According to a study just published, consumers believe that retailers are not doing enough to keep their credit or debit card information out of the hands of criminals, with 63% of consumers believing that retailers are the least secure in terms of protecting their account information,

And nearly half of all consumers say that if they found out that their account information had been compromised, retailers would be most likely to blame.
More importantly, and more likely to spur retailers to invest in ever more security, was the finding that only 20% of consumers said they would likely continue shopping at a store if they learned it had a data breach that may have compromised their card account information, while 78% said they would be unlikely to continue to shop there.
Maybe some good will come out of the TJ Maxx data breach after all. Consumers are getting smarter and realizing where to place the blame. They’re also punishing with their pocket books, supporting companies that show a real commitment to security and boycotting companies that don’t.

I hate being right, especially when bad things happen. But most retailers I know are doing the very minimum they can when it comes to security, instead of making it their top priority. I think it was the Irish who invented the whole notion of the boycott (against a troublesome land agent called Captain Charles Cunningham Boycott) and I also think it’s one of the few weapons we as consumers have against businesses that allow our data to leak and our identities to hurt.

You’d think that as a consumer you’d have the right to decide who has access to your personal credit reports, not only to reduce the endless barrage of unsolicited financial offers you may receive in the mail but more importantly to protect you against identity theft before it happens.

Yet despite widespread agreement that the option of a credit freeze is a great tool for consumers, thanks in part to the efforts of highly paid lobbyists only around 20 states have real credit freeze laws in place – some states have a restricted version of a freeze which only allows consumers to place a freeze after they become a victim of identity theft.

A freeze is different to a fraud alert. As a consumer you can place a fraud alert after you detect what is or appears to be an identity theft or a new credit account in your name.

A freeze is a pre-emptive measure to prevent even legitimate financial companies from accessing your credit report without your permission. There’s usually a small fee, typically around $10, to place the freeze and another fee to lift it.

Make your voice heard this year by urging your local representatives to push for more and better legislation. You can find out what kind of credit freeze laws your state has in place at the non-profit Consumers Union at www.consumersunion.org - click on the link Campaigns and Financial Privacy.

You can also use that web site to send a letter to your Congressional Representative and Senators urging them to take greater action.