The problem: Last year information broker ChoicePoint inadvertently made consumer dossiers available to a Nigerian identity thief living in Los Angeles who obtained files on 145,000 fraud targets before being busted by police. No computer hacking was involved - the crook simply posed as a legitimate small business.

The solution: Know your clients. Verify that they possess requisite licenses or credentials (particularly for fields such as legal research, debt collection, or private investigations), and when possible, conduct corporate background checks and site visits.