An advisor should talk with clients before disbursing any money on their behalf and should not take instructions by e-mail, warns Jim Holtzman, personal CFO at Legend Financial Advisors Inc., an investment advisory firm based in Pittsburgh.

Holtzman issued the warning during a webinar on identity theft sponsored by Legend Financial Advisors Wednesday. One way financial advisors’ clients can protect their identity and prevent a loss is to make sure the advisor talks to them before taking action on an account.

Identify thieves are becoming adept at mimicking people in e-mail and other communications in order to steal their money, Holtzman says.

“There is no foolproof way to protect yourself from identity theft, but you can diminish the chances by taking certain actions,” he says.

Protecting the identity of a child is something many parents do not think of, but it should be considered, says Holtzman. A child’s identity can be stolen and credit cards taken out in his or her name in a scheme that can go on for years before it is discovered. Legend advisors tell their clients to be aware of any unusual solicitations a child receives in the mail, which could be a tip off that a thief is racking up debt in the child’s name.

In addition to shredding bills and credit card information before disposing of it, Holtzman says, people should open items that appear to be junk mail to make sure it is not a credit card notice or some other information that indicates there may be a problem with an account.

Thieves also are becoming more skilled at stealing identities using medical information, says Holtzman, who specializes in advising doctors and dentists. Thieves can steal medical insurance information and sell it or even use it to obtain medical treatment or drugs.

If such a breach occurs, Holtzman says, the victims should try to get their insurance companies to change their policy numbers as well as issuing new credentials.

Old smartphones and computer hard drives should be properly disposed of and not just thrown in the trash because a wealth of information is stored on them.

Travel, especially overseas, is also an opportunity for thieves and clients should take extra steps to secure their identity while they are out of the country, Holtzman says. Carry a backup credit card in case a main credit card is compromised and monitor credit card reports while traveling, he advises.