You might be surprised to learn that your identity may actually be safer online than offline.

The Better Business Bureau recently released its 2005 Identity Fraud Survey Report as an update to previous research by the U.S. Federal Trade Commission. One key finding is that, despite growing fears about identity theft and online fraud, Internet-related fraud problems are actually less severe, less costly, and not as widespread as previously thought.

In fact, when the identity and method used by the criminal are determined, these crimes are more frequently committed offline than online.

The study also concludes that those who access accounts online can detect a crime earlier, and those who fell victim experienced financial losses that were less than one-eighth of those who detected the crime through paper statements.

According to over 4,000 respondents, the most frequently used tool to commit fraud was a lost or stolen wallet or checkbook. Computer crimes accounted for only about 11% of all known-cause identity fraud in 2004.

Among cases where the perpetrator's identity is known, half of all identity fraud is committed by a friend, family member, relative, neighbor, in-home employee, or someone known by the victim.

The majority of identity fraud crimes are self-detected. This reinforces the benefits of electronically reviewing transactions, statements, and credit reports – without waiting for a paper bill or statement.

There are easy ways to protect your identity:

• Prevent access to personal information.
• Replace paper bills, statements, and checks with Internet (paperless) versions.
• Move to an electronic bill payment service, such as the Alameda Power & Telecom website, or your bank or biller's website, and stop sending signed paper checks through the mail. Visit the site(s)to monitor account activity on a regular basis.
• Before discarding, shred all private documents.
• Sign up for automatic payroll deposits.
• Retrieve paper mail promptly, and place outgoing checks or other sensitive documents in a U.S. Postal Service mailbox.
• Keep passwords hidden (even in your own home), and change them frequently.
• Don't discard a computer without deleting all sensitive data.
• Use and regularly update spyware, firewall, and anti-virus software.
• Don't respond to bogus "phishing" emails that request personal data.
• Be suspicious and reluctant to release Social Security or account numbers, particularly to those requesting such information by email or phone.
• When responding to email, ignore any Internet links provided and type the full address instead.
• Watch for unauthorized activity.
• Review bank and credit card statements weekly, and use online account access.
• Contact your financial provider if you fail to receive statements in a timely manner.
• Use email-based account "alerts" to monitor transfers, payments, low balances, and withdrawals.
• Sign up to receive electronic bills and statements, and whenever possible, select the option to turn off the paper copy of these sensitive documents.
• Review your credit report at least annually.
• Resolve fraud promptly, minimizing losses.
• Ask your financial provider about zero-liability guarantees against fraud and dedicated resources to help you recover from any potential losses.
• If you fall victim to theft or fraud, notify your financial providers, begin monitoring your accounts more frequently, and place an "alert" through a credit bureau such as Equifax, Experian, or TransUnion.