Give me convenience or give me death! With our increased reliance on the convenience of the web and plastic over cash, we have opened a pandora's box in crime. In this case, Pandora is called identity theft.

The phrase identity theft generally means what it sounds like. It is the theft of a person's identity by another for some profitable purpose. That being said, identity theft actually comes in a number of different forms.

Mention identity theft and most people think of stolen credit cards. This occurs, but is actually the end result of the theft. Credit card accounts are not the target of most criminals, social security numbers are.

With a social security number, an identity thief can take many financial steps. They can open multiple credit card accounts. They even apply for a loan once they establish a second address.

Another area where social security numbers are being turned into criminal profits is fairly new. Many illegal immigrants are required to show valid social security numbers to hold jobs. Guess where those numbers are coming from.

The sale of social security numbers to people who need them to hold a job causes another massive problem for the victim. Taxes. The IRS receives a report of all earnings per social security number. If you under report, you will be contacted.

Another area where your social security number can be misused is at the bank. The thief will open a bank account using the number. The thief then writes bad checks against the account until the bank closes it.

Owning the latest mobile phone seems to be a must these days. Signing up for such phone services is simple and indentity theives are famous for doing it. The people at those kiosks in the mall just don't check very closely.

The horrific thing about identity theft is it occurs without the victim knowing it. The identity thief always uses an alternative address, so you have no way of discovering what is going on until it is much too late.

So, how do most people discover they have been hit? They start getting calls from credit bureaus or collection companies. Alternatively, they find all their credit cards shut off and their bank account frozen.

Trying to convince credit card companies, the IRS and so on that you are innocent is a test that would make Buddhist monks riot. Your best option is to take every step possible to avoid the problem.