Identity Theft : Fastest-growing Crime
by Michael Sanford
October 13, 2005
Identity theft is quickly becoming one of the most prevalent
forms of crime in the country, with approximately 10 million
victims a year. Cases include impostors using someone's
credit card number to make purchases, and social security
numbers stolen over the internet. Identity thieves are also
now robbing identities on a large scale, as seen by the
Choice Point and LexisNexis cases earlier this year, when
personal information from 175,000 accounts was stolen from
these two large data collecting companies.
Identity theft is one of the fastest-growing crimes in the
country with about 10 million victims a year, according to the
Identity Theft Resource Center.
The crime takes several forms, including impostors using
someone's credit-card number to purchase merchandise and
drivers giving someone else's personal information when
pulled over by police for speeding.
Cases of credit-card and Social Security numbers getting
stolen over the Internet are becoming the most common
instances of identity theft, but people do not need to own a
computer to be victimized.
Bridgewater was watching a New Year's parade in 2003
when she got a call from a man claiming to be with a credit-
card company.
For example, criminals recently gained access to 175,000
accounts from two data collecting companies: ChoicePoint
and LexisNexis.
While banks take security measures to protect customers who
bank online and use credit, ATM or debit cards, officials say
consumers themselves must take precautions.
Signed with an official eBay logo, the e-mail tells a consumer
that their eBay account has had "unusual activity" or is in
danger of closing.
A victim of identity theft will need a new credit card, driver's
license or Social Security card, depending on what
information was stolen and used.
Her days of casually tossing her purse about ended when a
relative stole personal information from her purse and rented
apartments in New Mexico, signed up for credit cards, bought
different cell phone plans and purchased a $43,000 pick-up
truck.
Kurrasch learned of the identity theft when her application for
a car loan was denied.
Identity theft has become and epidemic and the number one
crime in America. Millions of consumers have become
victims of identity theft in one way or another. The internet has
become a breeding ground for crimes of persuasion. Through
high-tech scams, fake websites and emails, computer
hacking, and telemarketing schemes, thieves are able to
obtain and sell your personal information on the black
market. According to one source if your FICO score is 550-
650 your information is worth $150 to $200.
With personal information thieves can drain your bank
account, obtain credit cards, mortgages loans, personal
loans, auto loans, and even deceive law enforcement and
commit crimes in your name. No one is safe!
According to the Denver Post 7/31/2005, American Idol Star
Rueben Studdard recently filed charges of identity theft and
fraud against his ex-manager.
What can you do if you become an identity theft victim?
You can do-it yourself, but it will take hundreds of hours,
thousands of dollars, and dealing with stress and mayhem
that¡¯s associated in restoring your identity. In today¡¯s busy
society; working, raising the children, paying the bills and
dealing with everyday life, it is almost impossible to find time
to deal with something else, especially if your identity is
stolen.
Consumers are becoming more aware of the problem of
identity theft due to the costs involved in being a victim, but
The Capital Journal reports that few people realize the time
investment that can go into recovery: Around 600 hours of
work over months or years.
When consumers contact the Federal Trade Commission,
their primary concern is identity theft.
Identity theft robs people of more than just money.
According to the Identity Theft Resource Center, it now takes
a victim more than 600 hours of work, spread over months
and years, to recover from having their identity stolen.
That 600 hours represents nearly $16,000 in lost or potential
income, according to the resource center.
The average victim also ends up spending an extra $1,600 of
his own money to clear his name and clean his credit report.
It could be as simple as telling someone they've won a prize,
but in order to claim the prize the "phish" must provide credit
card information for shipping and handling.
According to advice from the FTC, if a prize is labeled "free,"
then no personal or financial information should be needed to
claim it.
Another scam is receiving a communication online from a
financial institution that suggests an account has been
violated and they need validation of personal information to
re-establish the account.
The FTC warns that no "legitimate" business will ask through
electronic means for validation of personal and financial
information and that in the unlikely event they do, they will
convey that information through a letter sent through the U.S.
Postal System.
All a scammer needs to do is create a suitable copy of a
letterhead for a business, a bank or even the Internal
Revenue Service requesting personal information.
Rarely does a legitimate business ask for such information
through e-mail or instant messages.
When approached over the Internet, the best thing to do is to
call the Internet provider and report the incident.
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For more information on Identity Theft please visit the Identity Theft resource center.
