BLOOMINGTON - The story never gets old this time of year: Some Grinch wants to steal your Christmas, and in some cases, your life.

As shoppers race to buy gifts before the holidays arrive, they often become more lax with personal information and credit card numbers, said Stan Ommen, president of State Farm Bank and chairman of the Identity Theft Assistance Center, a bloc of financial institutions.

"It's a time of year when people are busy," Ommen said, warning people to safeguard their personal information. "With the emphasis that's placed on (identity theft), financial institutions are doing a better job of protecting consumers … I still encourage people to always monitor their credit statements."

Identity thieves are busy too, realizing that lots of personal information will be floating around the Internet this time of year.

"It's a numbers game," said Matthew Klosky, chief information officer of STL Technology Partners in Bloomington and self-proclaimed "computer geek."

"You end up with a lot of people this time of year who don't have much experience with online sales. As they look around for the best prices, they end up at sites with weak security," he said.

Identity thieves don't just make fraudulent purchases with credit cards, they impersonate victims, opening unauthorized checking accounts, applying for loans and establishing phony insurance policies. They set up cell-phone service, visit doctors and apply for loans with the personal information of others, according to the Federal Trade Commission.

They prey on holiday compassion, most often stealing information from the people who may trust them the most, Ommen noted.

Boosting up their efforts this time of year, identity thieves distribute phony e-mails requesting personal information, set up bogus Web sites to sell fake goods and hack into the servers of retailers.

In the latest efforts, they're creating programs to steal personal information as it's being typed. Klosky called it "key watching" or "key logging," and consumers can protect themselves by regularly updating computer software.

Some safeguards are much easier, said Bryan Jackson, manager of Connecting Point Computer Center in Bloomington.

"It's just a matter of using good judgment," he said.

If purchasing gifts via the Internet, for example, stick with reputable retailers. If purchasing online from smaller retailers, be sure they have brick-and-mortar operations as well.

"The large retailers with all the name recognition have very secure servers. Those smaller sellers may have a lock on the front door, but once you get inside, it's open," Klosky said. "Mid-tier and small-tier (retailers) aren't investing as much in Web site security. They just don't have the resources."

While the holiday are good time to highlight identity theft, consumers should be vigilant all year round, Jackson said.

"It's just relentless all year round in my opinion," he said.

Preventing identity theft

Protect yourself when buying gifts this holiday season:

• Download free computer-protection software like Spybot Search & Destroy from www.safer-networking.org or Ad-Aware from www.lavasoftusa.com.

• Regularly update the software on your home computer to prevent "key watching" software that can steal personal information as it's typed. Both Apple- and Windows-based computers can be set up to download updates automatically as they become available.

• Don't leave the door wide open. Turn of your home computer when not using it.

• Use good judgment and purchase online only with reputable retailers. Look for the padlock symbol in the bottom right-hand corner of Web pages and Web addresses that start with "https."

• Never respond to unsolicited e-mails requesting personal information.

SOURCES: Matthew Klosky, chief information officer of STL Technology Partners in Bloomington, the Identity Theft Assistance Center, the Insurance Information Institute and Bryan Jackson, manager of Connecting Point Computer Center in Bloomington.