Identity Theft Meets High-Tech

You probably like to keep up with the latest technology, and so do high-tech crooks who constantly find new ways to tap into private information.

As your financial life becomes increasingly integrated with electronic devices, apps and online services, you're taking on more risk for identity theft.

Here's a look at the biggest identity theft hazards of 2011 and how you can protect yourself from fraud.

What: App interference
How: Apps often use URL shorteners to save characters. If you click on a link with a shortened URL, it's harder to know if you're really going to the website you want or another destination. For example, last month some Twitter users received tweets with a shortened URL that led them to a fake anti-virus software program, where they were asked to enter credit card and other personal information. Just like your bank's website can be a victim of hackers, so can your favorite apps.
Protection: If you can, preview shortened links before you click. If you do click on a shortened link, don't enter private information such as account numbers or passwords. Wait until you can investigate the full link to make sure you're visiting a real business and not a hoax.

What: Skimming
How: Thieves install devices in ATM machines, and the devices record the account information that's stored on the magnetic stripe on your debit or credit card. Some devices can even record your PIN.
Protection: Look carefully before you use an ATM. If you notice the faceplate of the ATM is askew or wires are visible, don't use the machine and report it to your bank or the police. Watch out for new signs on an ATM saying account access instructions have changed.
Scam variations: There have been reports of skimming devices found on bank entry doors -- where you have to swipe your card for access to a lobby ATM. Also be aware that a similar device can be used when you make a point of sale (POS) purchase -- it's a handheld machine that records your credit card's info -- so pay attention whenever you hand off your credit card to a store employee.

What: Phishing
How: Scammers send you an e-mail that looks like an official message from your bank, investment company or favorite online store. The e-mail tells you to click on a link within the message and you're taken to a website that looks a lot like the real thing. You're instructed to enter personal information, which goes right into the hands of the thief.
Protection: If you receive an e-mail from a business you use, never click on the link in the message. Instead, open a new browser and enter the web address yourself. If you receive a phishing e-mail, forward it to the company it's impersonating so the firm's fraud team can investigate.

What: Pharming
How: The bad guys create websites with addresses similar to the real thing. A one-character typo gets you to the fake site. For example, the real address might be www.bankofABC.com, but the thief sets up a look-alike site at www.bankoofABC.com. Thieves record any personal information you enter into the bogus site.
Protection: Use bookmarks for your bank and other important web sites so you can be sure you don't mistype if you're in a rush. Before you enter private information, take a second look at the web address and the home page to make sure you're in the right place.

What: Smartphone theft
How: The old-fashioned way. A pickpocket snatches your phone from your pocket, or maybe you leave it unattended somewhere. Many people store passwords, account numbers and other important private information on their phones. Others are hooked into websites or apps that have a stored password, which means anyone who picks up the phone can access those private accounts.
Protection: Don't store private information on your phone. Make sure the sites and apps you access require you to enter passwords every time.

What: Tapping into unsecured Wi-Fi networks
How: If you take your laptop to your favorite internet cafe, the lobby of a hotel or other location that offers free internet access, your private information could be up for grabs for even unsophisticated hackers.
Protection: Don't visit websites that require you to enter a password or other private information on unsecured networks, or even on a friend's computer.

What: Online job applications
How: With so many people desperate for work, it's easy to get duped into applying for fake jobs.
Protection: If you find a job posting on a site that's not well-known, investigate more before entering private information. Even postings on popular job search sites should be viewed with caution. No potential employer needs your Social Security number or birth date to review an application. Just don't give that information.

Also beware of low-tech methods of identity theft, which are still a threat. These include:

• Dumpster Diving: Thieves may look through your garbage for account numbers, pre-approved credit card applications and other documents that have private information. Invest in a shredder and use it before throwing away these papers.

• Diversion: If you receive paper bills, pay attention to when they arrive each month in your mailbox. If something is late, call your financial institution. A thief may have impersonated you, telling the institution to mail your bills -- and other private information -- to a different address.

• Impersonation: Beware of telephone calls from financial institutions. If they ask for personal information to "verify" your account or identity, hang up and call the 800 number for your bank or credit card. The rep should be able to confirm whether the phone call you received was legitimate.

Need more information? Learn more about how to protect yourself at these sites:

• Federal Trade Commission
• Federal Bureau of Investigation
• United States Postal Inspection Service
• U.S. Department of Justice
• Identity Theft Resource Center
• Privacy Rights Clearinghouse