Identity theft don't be a victim: fraud and identity theft are major threats to Americans.

The United States is currently under attack, and it is not by al-Qaeda terrorists. For the most part, it is by good old red-blooded American thieves.

Fraud and identity theft are at epidemic proportion in our country. They are the fastest-growing money crimes in America.

According to The Nilson Report, annual check fraud losses are up to $20 billion and growing by about 25 percent per year. And the Federal Trade Commission also says some 9.9 million Americans had their identities stolen in 2002.

ID theft is the No. 1 complaint received nationally, according to the FTC; about 500,000 Americans are victimized each year, and the problem is getting worse.

So, exactly what is identity theft? A common definition is when someone steals the personal information of another person (social security number, date of birth, etc.) to commit fraud or theft. With the information, thieves can control bank accounts, compromise retirement accounts and credit cards, and establish new bank accounts and debt in a victim's name. They also have been known to get home and car loans.

Once an identity thief stings an individual, it will cost the victim, on an average, $800 and 175 man-hours to rectify the financial quandary and restore his or her credit.

The cost is high to the victim because resolving the problem is more involved than just saying, "This isn't me; someone stole my identification." First the credit card and finance companies have to be convinced, and then all three credit bureaus must be persuaded. All that takes a lot of time, paperwork and often legal assistance.

This problem is not just the consumer's dilemma. Identity thieves also cost financial institutions, including credit card companies, about $5 billion each year.

Living in Alaska, and being isolated from most of the country, does not help either. In fact, in 2003, the blue and gold state stood on top of the list, per capita, when it came to fraud. For every 100,000 residents, 179.6 people were affected by fraud last year in this state. And that figure only accounts for the people who filed reports.

As for identity theft, Alaska is doing better. In 2002, Alaska was 26th place in the nation and last year the state moved down to 41st.

Opportunities abound for criminals to obtain the required information to steal identities, according to Frank Abagnale, a former thief who is now working as a consultant to both the FBI and private enterprise.

Abagnale's story as a youthful counterfeit is loosely depicted in the movie "Catch Me if You Can." He admits counterfeiting checks totaling $2.5 million between the ages of 16 and 21. Now more than 40 years later, after serving time in French, Swiss and American prisons, Abagnale uses his knowledge to work against fraudulent crimes.

Abagnale recently spoke in Anchorage at a KeyBank-sponsored seminar. He said that once the theft of wallets and purses was the primary way to obtain personal information. Today "dumpster diving," combined with Internet Web sites and search engines, are only a few ways modern-day frauds identify and exploit their marks.

"Criminals also gain access to individuals' credit reports by posing as potential landlords, employers or loan officers," Abagnale said. "They steal mail from mailboxes for bank or credit card statements, and they dig in trash bins for credit card and loan applications that have not been shredded."

He went on to say that after obtaining the necessary information, criminals can easily impersonate their victims and obtain loans and spend money as fast as possible. And although victims are not usually liable for more than the first $50 of loss, their credit report always ends up a mess.

Wynn Jennings, senior financial crimes investigator for KeyBank, says that most financial institutions are willing to help their customers combat fraud and ID theft. For their customers, KeyBank has prepared a short list of safeguards to assist people in the fighting of identity theft:

* Make sure bank checks are in a safe place.

* Shred or tear up old checks, deposit slips and statements before throwing them in the trash.

* Reconcile bank statements promptly after getting them in the mail.

* Avoid mailing payments for bills in your residence mailbox.

* Pick up incoming mail as soon as possible.

* Use your checks in sequential order.

* Do not use pencil or erasable ink to write checks.

* Never give your bank account number, social security number, credit card number or other personal information to anyone you don't know, especially over the phone or on the computer.

* Do not use your bank account to cash or deposit checks for people you do not know.

* Never leave your purse or wallet unattended.

* Keep a copy of your credit card numbers in a confidential place. Check your cards periodically to make sure none are missing and sign new cards as soon as you receive them.

* Destroy carbon copies of receipts, copies of airline tickets, travel itineraries, or anything that displays your credit card number.

* If checks or bank cards are stolen, immediately report the theft to the bank and police.

* Do not have your social security number or driver's license number printed on your checks.

* Be aware of Internet scams. If you receive an e-mail from someone promising you a deal that sounds too good to be true, it probably is.

* Watch out for lottery scams. If someone tells you that you just won money but must first pay the taxes before they can release the check, immediately contact the FBI for assistance.

Although you take every precaution, ID theft still happens. If it does, here are some things to do:

* Report the crime to the police and get a police report number.

* Keep a log of all conversations with authorities and financial institutions, including names, dates and times.

* Call your credit card issuers immediately and follow up with a letter and the police report.

* Notify your bank immediately.

* Call the fraud unit of credit reporting companies to place a fraud alert on your name and social security number.

Abagnale also recommends a credit card security service that can be found on the Web at www.privacyguard.com. He said, "It provides me with the contact information of the company that obtained my credit report, as well as means to correct false reports." He also said that the company contacts its clients anytime a suspicious credit card transaction takes place. They will call, page or send e-mails to its patrons as soon as possible.

From giant corporations to a small mom-and-pop business, even down to an individual consumer, check fraud has been a major problem and it is get ting worse, according to both Jennings and Abagnale. And merely saying it is a national epidemic is like saying Niagara Falls is a leaky faucet.

According to The Nilson Report, more than $1.2 million of worthless checks, each day, enter the banking system. It also says that annual check fraud losses now exceed $20 billion, which is up from $12 billion in 1996 and $5 billion in 1993. American Bankers Association alleges that check fraud grows annually by 25 percent.

While there is a lot to say about modern technology and the good it does for mankind, for check thieves, technology is the bedrock of their chosen career field. For many of the check fraud gangs, scanners, copy machines, laser printers and computers are the tools of choice. They use that technology to alter or create counterfeit checks.

It is not only the professional criminals that are involved with check fraud, but also dishonest employees play a major role in this misdeed. Often they are individuals with too much control over the company's checkbook. They can draft and sign checks, do the bookkeeping and reconcile monthly bank statements.

Another major problem is the laxness of security procedures for many companies. Too often blank checks are left in an unlocked storage area, like a desk drawer, or they are stored with a signature stamp. In these situations, unscrupulous staff members can make a scanned copy and write checks at will.

Can check fraud be prevented? In reality, no. There is no foolproof method that will work for all methods, all the time. Abagnale, who is probably one of the world's foremost experts on check fraud, does provide some advice. He said, "When fighting check fraud, nothing is 100 percent. No feature or program can completely eliminate check fraud, and no prevention system is foolproof.

"However, specific practices can complicate a criminal's counterfeiting efforts."

Here is a list both Abagnale and Key Bank agree upon to help counter the problem of check fraud:

Positive Pay (Match Pay) is the most effective tool available. It is an automated check matching service and is offered by the cash management departments of many banks. To use this service, the check issuer sends a file of issued checks to the bank, usually at the close of business each day. Positive Pay compares the account number, check number and dollar amount of each check presented for pay against the list of checks authorized and issued by the company. If the check is fraudulent or the dollar amount was altered, the bank will return the check unpaid.

ACH Filter or Block. Forgers have learned that Positive Pay cannot monitor electronic checks, also known as Automated Clearing House debits. Files containing ACH debits are created by a company and submitted to the bank. The bank processes the file through the Federal Reserve System and posts the ACH debit against the designated account. Because paperless transactions pose substantial financial risk, banks are careful to thoroughly screen any company that wants to send ACH debits. In the electronic debit world, each ACH originator has a unique identifying number. ACH filter posts debits only from pre-authorized originators or in pre-authorized dollar amounts.

High Security Checks. These checks provide the only deterrent to altered names and dollar amounts by making alterations and replications more difficult. These checks should contain such safety features as: controlled paper that is securely distributed and monitored by the paper manufacturer; multi-chemical reactive papers that produce a stain or word "VOID" when activated with ink eradicator class chemicals; thermochromatic inks, which react to change in temperature; holograms, which are multicolored, three-dimensional images that appear on a reflective material when viewed at an angle; and safety papers, which were designed to combat erasures.

Alterations. Forgers and dishonest employees can easily erase words in small type and cover their erasures with a larger type font. To prevent this, use a 12 point or larger type font for the payee name and dollar amount.

Check Stock Controls. Keep checks in a securely locked area. Change locks and combinations frequently to ensure they have not been compromised. Keep check boxes sealed until they are needed.

Annual Reports and Correspondence. They should not contain the actual signature of the executive officers. Forgers scan and reproduce those signatures on checks, purchase orders, letters of credit and other negotiable documents.

While it is vital to report any cases of ID theft or fraud to the authorities, Abagnale points out that unfortunately white-collar crimes normally are not front-burner cases for most police departments. They are usually facing dangerous criminals and terrorists that want to bring deadly harm to the community. Federal agencies, like the FBI, also may not be able to provide much assistance unless the action involves large sums of money.

So, he says the best defense is a good offense and advises people to be proactive and aggressive in protecting themselves against the good old red-blooded American thief.