Many have fallen prey to the misconception they are more likely to have their identities stolen from their online computer than through any other means.
The truth is most criminals still get their information from offline sources.
Identity theft, the practice of stealing other people's personal information, is mostly committed for monetary gain.
Identity thieves usually go after specific information that allows them to drain the victim's bank account, take out a loan in the victim's name or rack up purchases on credit cards.
To protect yourself, you should invest in a paper shredder, remove mail from your mailbox as soon as it's delivered and keep personal papers out of sight of guests.
The 2005 Identity Fraud Survey Report -- recently released by the U.S. Better Business Bureau and Javelin Strategy & Research -- indicates less than 12 per cent of known-cause identity fraud in the U.S. is attributable to online theft.
The Better Business Bureau says the "numbers show fears about online identity fraud may be out of proportion to the relative risk" as a victim is more likely to get their information stolen from an offline source.
The study found about 30 per cent of all identity theft is committed with information obtained through lost or stolen wallets, cheque books or credit cards.
Other popular offline sources are stolen or fraudulently diverted mail and bank statements, pre-approved credit card applications and various forms pitched in the garbage or recycling box.
Identity theft does occur through online sources, but people shouldn't let fear of it prevent them carrying on their personal business online. Almost half of the 12 per cent of personal information stolen online is obtained through spyware. Internet users can protect themselves from spyware by regularly updating their spyware and virus protectors.
Phishing scams to get people's personal information are on the increase. A phishing scam uses e-mails or websites that appear to come from legitimate, well-known businesses, especially banks. These e-mails or websites usually indicate there's some emergency situation and, with the pretence of trying to rectify the situation, request your personal information, such as your name, account number and social insurance number.
Protecting yourself is easier than you think. Simply don't respond to such e-mails. If in doubt, phone the bank, using the number in the phone book.
While some people refrain from online access to their accounts out of concern for protecting their personal information, the study points out the use of the Internet to accesses accounts can provide early detection and greatly reduce a victim's losses.
The average loss detected through online means is about one-eighth of the average loss of victims who wait for their paper statement in the mail.
Instead of just focusing on who may get their information through the Internet, people should be more concerned about those close to them obtaining and misusing their personal information.
In 50 per cent of all cases of identity theft where the thief was identified, the perpetrator was someone known by the victim, the study found.