By Amy Baldwin,Knight Ridder Newspapers

I interviewed an identity theft expert today. Talk about an eye-opener!

Check out this Q&A with Jack Vonder Heide, CEO of Technology Briefing Centers, Inc., a Chicago-area research and education firm that serves the banking and financial sectors. Vonderheide



What’s new to report in identity theft?

We have all kinds of new things to report. One that is just starting to appear in the U.S. is caller ID modification. This means an identity thief can alter the caller ID at a person’s home, so they think their bank is calling or their insurance company or the police when in reality it is the identity thief. It is going to be a very big problem.

Another thing that is becoming more problematic on an exponential scale involves wireless Internet access. Almost 90 percent of home computer users do not encrypt the signals. The (encryption) software comes free with the router, but people just don’t install it. What this means is signals can be intercepted by anyone driving by your house if they have the right equipment. Anything you type into the computer, they can get.

Also fast and furious is a brand new scheme called Social Security poker. Identity thieves will contact (college or high school) kids through their profiles on online forums Myspace.com or Facebook.com and say, “Take a look at your Social Security number. If you have two numbers in a row you win a beach towel or four of a kind gets you concert tickets. If you send us your number and your address we will send you a beach towel.” (What??!!! People give up their Social Security numbers for friggin’ beach towels!!! Sadly, yes, Vonder Heide assured me.)



I feel silly asking this next question now. Do you see younger people at more or less risk for ID theft. They avail themselves of more technology, so they stand to be savvier about it, right?

They are savvy in that they know how to use the technology, but not savvy in understanding the risks.



What are your top tips for avoiding ID theft?

First, install antispyware on your home computer. Spyware is malicious software that gets in your computer when you click on a popup ad or attachment. There is $30 (antispyware) software. One is called Ad-Aware and the other is Spybot. If you have a high-speed connection, get Norton or McAfee, which scans for viruses. You can reduce your chances of becoming a victim of cyber crime by 99 percent.

The other thing I advise people is if you get any communication phone call, e-mail or letter in the mail from your credit card company or something never respond to that communication that you did not initiate. Always initiate communication on your own to make sure you are speaking with a legitimate source. If American Express calls you to say there is a problem, say, “Thank you very much. Let me call you right back.”

Amy Baldwin covers money-related topics for 20- and 30-somethings in “Out of the Red.”