There has been quite an uproar about the dangers of identity theft on the Internet. However, the 2005 Identity Fraud Survey Report, co-sponsored by the Better Business Bureau, indicates that despite escalating worries about online fraud, identity theft is more likely to occur offline. The report further concludes that problems related to online theft are less widespread, less costly and less severe than earlier considered.

According to the report, lost or stolen wallets or checkbooks are the most frequently cited sources of information used to commit identity theft. In comparison, computer-related activities accounted for only 11.6% of all identity theft in 2004.

The report points out that a wide variety of metrics confirm that identity theft problems are not getting worse, as the total number of victims is decreasing. The actual number of victims dropped from 10.1 million to 9.3 million from 2003 to 2004.

Moreover, the annual dollar volume of losses is holding steady, with 2004 figures similar to those of 2003 at $52.6 billion. And the median value of identity theft losses has remained unchanged at $750 from 2003 to 2004.

In addition, the average time to resolve an identity theft occurrence has declined 15%, from 33 hours in 2003 to 28 hours in 2004. The report also notes that the majority of identity theft incidents are self-detected.

The report sets forth a number of recommendations designed to prevent identity theft from happening in the first instance. The first such recommendation is that people generally should be vigilant in preventing access to their personally identifiable information.

In terms of specifics, it is recommended that paper bills and statements be replaced with Internet (paperless) versions. Along those lines, it is suggested that electronic bill paying services should be used, and that automatic payroll deposits should be utilized.

The report is quite clear that private documents should be shredded before discarded. Paper mail should be retrieved promptly and outgoing checks and sensitive documents should be placed directly in a U.S. Postal Service mailbox.

Further recommendations include keeping passwords hidden, discarding computers only after deleting all sensitive data, using regularly updated firewall and anti-virus software, and reviewing credit reports at least annually.

And, finally, the report recommends that victims of identity theft report incidents immediately to financial providers and credit bureaus. Of course, law enforcement authorities also should be contacted under appropriate circumstances.

At the end of the day, while the report paints a picture that might not be growing worse from 2003 to 2004, losses of $52.6 billion still are quite significant. Steps should be taken so as to avoid being yet another victim of identity theft.

Interestingly, while many people fear that their online conduct might make them more open to identity theft, the report seems to indicate that the handling of certain transactions electronically, instead of in paper form, could lead to greater safety.

Reprinted here with permission from USAToday.com.