Identity theft is bad news. It can happen when personal information, such as names, social security numbers or credit card numbers, are used without consent to perpetrate fraud or other misdeeds.

The consequences of identity theft can be severe. People whose identities have been stolen may be required to spend years and thousands of dollars to set their records straight, to try to recover misappropriated funds and to attempt to cope with lost jobs, loans or other opportunities.

Identity theft is a crime. To avoid being a victim of this crime, there are steps that can be taken to help prevent identity theft from occurring in the context of computer and Internet use.

The law

The Identity Theft and Assumption Deterrence Act (the Act) makes it a federal crime if a person "knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of federal law, or that constitutes a felony under any applicable state or local law."

Under the Act, social security numbers, credit card numbers, cellular telephone electronic serial numbers and other pieces of information that alone or in conjunction with other information that can be used to identify a specific individual are deemed "means of identification" sufficient to trigger provisions of the Act.

A conviction for identity theft can result in a maximum penalty of up to 15 years of imprisonment, a fine, as well as the forfeiture of any personal property used to commit the crime.

Moreover, specific offenses of identity theft can cause violations of other statutes, such as those having to do with social security fraud, financial institution fraud, wire fraud, mail fraud, computer fraud, and credit card fraud. Not surprisingly, these federal crimes carry their own penalties, and some can be as high as 30 years of imprisonment, in addition to fines and forfeiture of property.

In addition, most states have their own identity theft laws.

What can you do?

Many people store identifying information, like their names, social security numbers, birth dates, bank accounts, financial records and tax returns, on their computers, and at times they may reveal some of this information for specific purposes on the Internet. The question thus arises as to how this identifying information can be protected so that identity theft can be avoided.

The Federal Trade Commission (FTC) prudently has suggested that the following steps be taken to protect against high-tech identity theft:

• Update virus protection software regularly or whenever there is a new virus alert. It turns our that computer viruses can introduce program code that causes a computer to transmit files or other stored information that includes identifying details.
• Do not download files sent by people that you do not know. Opening such a file could expose a person's system to a computer virus or program that could "hijack" the modem.
• Use a firewall program, and this is especially the case for people who have high-speed Internet connections that make their computers connected to the Internet at all times. Such a program will help stop uninvited persons from accessing a computer.
• Use a secure browser, meaning software that encrypts or scrambles information sent over the Internet. This helps protect the security of online transactions.
• Make best efforts not to store financial information on a laptop. Obviously, laptops (and other small devices such as PDA's) can be lost or stolen, making the information contained on them available to others. If identifying information needs to be stored on a laptop and portable devices, it is important to use a "strong" password — a combination of upper and lower case letters, numbers and symbols.
• Delete identifying information before disposing of computer devices. Simple deletion by way of a keyboard or mouse may not be enough. The use of a "wipe" utility program can overwrite the entire hard drive.
• Closely analyze Web site privacy policies that should address access and security questions relating to the control of identifying information. If a Web site does not have such a policy, or if it does not promise a satisfactory level of security, move on and do not reveal identifying information to that Web site.

Be careful out there

Plainly, the foregoing are just a few tips to help stay safe when it comes to identity theft in the new high-tech age. Still, by following these steps and by otherwise being smart, you may be able to keep your identity intact and where it belongs — with you only.

This article first appeared on Law.com.

Eric Sinrod is a partner in the San Francisco office of Duane Morris (www.duanemorris.com), where he focuses on litigation matters of various types, including information technology disputes. His column appears Thursdays at USATODAY.com. His Web site is www.sinrodlaw.com, and he can be reached at ejsinrod@duanemorris.com. To receive a weekly e-mail link to Mr. Sinrod's columns, please send an e-mail with the word Subscribe in the Subject line to ejsinrod@duanemorris.com.