The latest study on identity theft by research firm Javelin suggests that while identity theft might be reducing slightly, it’s still a major crime claiming plenty of victims and billions of dollars. The study was sponsored by some major financial institutions including Wells Fargo and Visa.

Javelin interviewed 5,006 people, including 469 who said they were fraud victims, in a phone survey in the fall of 2006, and using that data estimated that 8.4 million adult Americans, or one in 27, found out that criminals had committed fraud using personal data such as credit cards or Social Security numbers. That was down slightly from an estimated 8.9 million victims in 2005 and 10.1 million in 2003.

The total cost of identity theft fell to $49 billion from $55 billion. The average cost per identity theft incident also fell slightly from $6,278 to $5,720, and adults under 25, African-Americans, and people who make more than $150,000 were among the groups most likely to suffer fraud.

The results are probably pretty accurate because in the last year we’ve seen a significant ramping up of security especially by financial institutions. Unfortunately this increased security is being spurred by tougher data protection laws rather than good corporate citizenship so let’s hope the laws don’t lose any of their teeth any time soon.

On the flip side we’re seeing much more creative and resourceful criminal gangs figuring out new ways to defeat new security measures, so I think the jury is still out on who will win this battle. In the meantime, stay vigilant and if you already take security seriously, keep doing what you’re doing.

Here we go again. It was just the middle of last year that most security experts were scoffing at the idea that viruses targeted at mobile smart phones could pose a danger to online banking and create new opportunities for identity thieves.

After all, with fewer than a dozen recognized viruses targeted at smart phones the era of global phone virus epidemics was too far into the future to worry about.

Not so, says a research group that focuses on banking security risks. A recent report by the Tower Group claims that 2007 will be the year that new banking and payment systems based on mobile devices will be targeted by identity thieves and other fraudsters, especially as these phones are increasingly being used as mobile wallets and always-on credit and debit cards.

According to the company more than 200 mobile viruses have already been identified, and number is doubling nearly every six months. “While most mobile phones are potential targets, smart phones and wireless PDAs are particularly attractive to fraudsters given their advanced capabilities to support PC-like applications including Web browsing and instant messaging,” claimed the company.

The reason experts believe that mobile malware now presents such a real threat to consumers is the same reason cited for the explosion in identity theft in the last few years. The financial industry is far more focused on exploiting the business opportunity in mobile banking than they are on making sure their systems are safe, secure, and street-ready and cybercriminals are never slow to take advantage of just the smallest security gap.

An identity fraud survey soon to be published promises to show some valuable insight into the current state of identity theft, and the cost to victims.

According to an early preview identity frauds committed by thieves known to the victim usually cost the most - $1,949 in out-of-pocket expenses as a result of theft by friends and neighbors, a few hundred less for thefts by family members, and just $135 to thefts by employees.

And the reasons for the difference are nothing new - people close to us have greater access to our information and knowledge of our habits; they can hide their crimes better and longer; and we're less likely to prosecute and therefore recover costs.

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.

A New Year means a new opportunity to take charge of your identity, to take a closer look at yourself much as an identity thief might, and to make sure that if a thief does stumble across you or your personal information, you offer little temptation.

It seems ironic that a new year’s resolution should include anything to do with personal security. But because our financial identity is so closely tied to our financial well-being, ignoring personal identity security is tantamount to ignoring personal financial planning. And you know where that can lead.

So maybe this year agree with yourself that you’ll take a more active role in your own security, because if you won’t then why should anyone else bother? Determine to take more time to evaluate your behavior and habits so that you reduce your vulnerability profile – in other words make yourself less visible to a potential thief.

A little security goes a long way. So too can even the smallest of identity thefts. Happy New Year!