When asked why he robbed banks, Willie Sutton famously replied, "Because that's where the money is."

Contemporary crooks with half a brain give Sutton's brilliant insight a digital age twist and use identity theft to take over existing accounts, create new accounts in the victim's name, and even secure fraudulent loans. The reason is simple: It's easy and, if caught, the penalty is a lot less than using a gun to rob a bank.

The Federal Trade Commission estimates that 9 million Americans have their identity stolen each year. The losses total billions of dollars each year, but the financial institutions generally take the hit and victims are rarely liable if the fraudulent debt run up in their name is reported quickly. However, consumers pay for the crime through higher fees – and an estimated 200 million hours spent each year trying to set the record straight and recover from identity theft.

"Monitor your credit report," says Robert Siciliano, CEO of IDTheftSecurity.com in Boston. "If your identity is stolen, one of the first things the thieves will do is open an unauthorized charge account in your name. I recommend reviewing your credit report quarterly – or at least annually. Consider investing in a credit monitoring service – it's about $10 a month."

No one is immune from identity theft -- even Ben Bernanke, chairman of the Federal Reserve. Thieves wrote checks against his personal account after his wife's purse was stolen at a Starbucks in Washington. Policy say the theft appears to be part of a large, sophisticated ring.

Here are some basic steps you can take to prevent identity theft or detect it early and limit the damage:

• Order copies of your credit report from the national credit bureaus at least once a year and review them closely for fraudulent activity. Federal law requires the three major credit bureaus to provide consumers with one free copy of their report each year. To download and print a copy of your report from Equifax, TransUnion and Experian, click to www.annualcreditreport.com, the authorized Web site for free reports. (See: How To Read a Credit Report and How To Fix Your Credit.)
  
  
• Close unused bank or credit card accounts.
  
  
• Click to DMAchoice.org, a web site run by the Direct Marketing Association, to remove your name from mailing lists of pre-approved credit cards. Thieves can easily steal the envelopes from your mailbox, open an account in your name and run up a huge bill.
  
  
• Guard your PIN number when using an ATM. Start with the basics: Be sure no one is looking over your shoulder when you step up to an ATM. No kidding – ID theft can be as simple as that.
  
  
• Keep an eye out for "skimmers" – electronic devices that read and record your account number and PIN – when using an ATM. Many skimmers aren't subtle and extra wires hanging from an ATM are a dead giveaway. To maintain security, use only bank or bank-branded ATMs.
  
  
• Never give personal or financial information over the phone or via e-mail to someone you don't know.
  
  
• Never respond to e-mails purportedly from your bank informing you of "problems" and requesting your account information to "check" security. Report such scams to your bank.
  
  
• Shred all financial records, including old credit card receipts, bills or bank statements, before tossing them in the trash. Note: A shredder that chops sheets of paper into confetti is more secure than one that creates long, thin strips. This prevents "dumpster diving" – the low-tech approach to identity theft.
  
  
• Contact your bank if bills don't arrive in the mail on time or don't arrive at all. Your account number may have been stolen.
  
  
• Install a firewall on your computer and update anti-virus software.

Siciliano says many people simply don't balance their checkbook or review monthly credit statements. This could allow fraudulent activity to slip by undetected.

He warns against giving out your Social Security Number to businesses that don't need it.

"Your doctor needs your Social Security Number," he says. "The local video store doesn't."

If unauthorized charges appear on your credit accounts, if you've been denied credit for no apparent reason or if you're contacted by creditors about past due bills for goods and services you didn't order, your identity has been stolen. Immediately take these steps:

• Tell your bank and creditors that your identity has been stolen. Close existing accounts and open new accounts. A new account number will prevent identity thieves from tapping into your money with the stolen information.
  
  
• Notify the national credit bureaus to place a fraud alert on your file.
  
  
• File a report with your local police department. Don't expect a detective to knock on your door, but the cops are always on the look out for major scammers and the theft of your identity could be part of a larger crime.

Sutton, a stickup man in the 1920s and 1930s, received a life sentence plus 105 years after he was arrested in New York in 1952 following the last of several prison escapes. He was released in 1968 due to poor health. Two years later, he did a TV commercial for a Connecticut bank's new photo ID credit card. He died in 1980 at age 79.

By contrast, Philip Cummings, a help desk employee at a New York company that provided banks with credit reports, was sentenced to 14 years in prison in 2005 for the computer theft of about 34,000 identities. A theft ring paid him $30 for each identity he swiped and the crooks may have netted as much as $100 million.

At that rate, Willie Sutton could have launched a second career – without need of a pistol or submachine gun.

"You can't rob a bank on charm and personality," Sutton once said.

But carelessness or inattention gives identity thieves all they need.