Identity Theft is Pervasive

Identify theft is becoming financially significant and a matter of grave concern to consumers. The harm to a consumer’s credit and daily life can be devastating. Victims of ID theft often have trouble getting new credit cards or loans because of the damage to their credit ratings.

Identity theft is growing at such a phenomenal rate in the Unite States today. According to 2 studies done in July 2003 (Gartner Research and Harris Interactive), approximately 7 million people became victims of identity theft in the prior 12 months. That equals 19,178 per day, 799 per hour, 13.3 per minute. Criminals are stealing information by eavesdropping on calls placed on cell phones, by intercepting emails, by hacking into computers, by using telephone and email scams, and by leveraging weaknesses in online shopping and banking sites.

Identity theft is considered the nation's fastest-growing crime

Identity theft seem like a snowball rolling downhill. The FTC told Congress this spring that a survey showed that a mind-boggling 10 million people were identity theft victims in 2003 -- or 4.6 percent of all U.S. adults in a single year. In addition, the FTC said, it receives between 15,000 and 20,000 contacts a week from victims or those who want to avoid becoming victims.

The number of reported cases of identity theft is increasing steadily. Within the first few months of 2005, we've heard about millions of individuals who have had their personal data exposed to fraudsters and thieves through no fault of their own.

Facts about Identity Theft

The 2003 FTC-sponsored survey found:

• Almost 10 million Americans were victims of identity theft in the past year, and roughly 27 million Americans fell victim within the last five years.
• About half of victims do not know how the identity thief obtained their personal information. Nearly one out of four of all victims said their information was lost or stolen—including credit cards, checkbooks, social security cards, or stolen mail.
• The total loss to businesses, including financial institutions, due to identity theft approached $50 billion last year.
• The total annual cost of identity theft to victims was about $5 billion and 300 million hours of time resolving various problems. The average victim of identity theft spent $500 and 30 hours resolving his or her problems. Victims dealing with identity theft involving new accounts and other fraud spent an average of $1,180 and 60 hours each resolving their problems.
• One out of 25 of those surveyed said identity thieves misused their personal information to evade law enforcement, such as presenting the victim’s name and identifying information when stopped by law enforcement authorities or charged with a crime.
  

How Your Stolen Identity Is Used

According to FTC's ID Theft Data Clearinghouse, the most common types of identity theft are:

• using or opening a credit card account fraudulently
• opening telecommunications or utility accounts fraudulently
• passing bad checks or opening a new bank account
• getting loans in another person’s name
• working in another person’s name.

Most often, identity thieves use the victim’s information to commit credit card fraud. However, nearly one in five victims reported their information was used to commit more than one type of fraud.

Ever-increasing Identity Theft and Data Breach Incidents in Digital Age

Technology has arguably made identity theft easier, faster and massive. The recent revelations that ChoicePoint and Bank of America have lost track of massive amounts of personal information -- or, in the case of ChoicePoint, had it directly compromised by identity thieves -- underscore the urgency of the identity theft crisis for American consumers.

Numerous incidents have highlighted the issue including: Two major information brokerage companies, ChoicePoint, Inc. and LexisNexis have admitted that data files of over 455,000 consumers were breached; One of the world’s largest financial institutions, Bank of America, confirmed that backup tapes containing personal data on 1.2 million accounts were missing; Federal authorities confirmed an investigation into the electronic hacking theft of eight million credit card accounts from the processor of credit transactions for MasterCard, Visa, Discover and American Express; A popular shoe store chain, DSW Shoe Warehouse admitted that customer credit information was stolen from over 100 of its stores; and Approximately 180,000 GM Mastercard holders will soon receive notification that someone might have stolen their personal information in a data breach at Polo Ralph Lauren Inc.

Consumers are being forced to live in the personal data flood plain. Companies involved in data leaks didn't do enough to secure the private information it stores. Corporate procedures of hadling personal data need to be changed, and consumers have to watch their data.

What is identity theft? Early warning systems that quickly alert you by mail or online to activity on your credit report such as newly opened accounts.

How is your identity stolen? If you don't check your credit report regularly, you may not find out until months or years after your identitity is stolen.

Identity theft surge in digital age If you don't check your credit report regularly, you may not find out until months or years after your identitity is stolen.

How to detect identity theft signs? If you don't check your credit report regularly, you may not find out until months or years after your identitity is stolen.

How to reduce identity theft risk To guard against fraud and keep your credit healthy, Credit Monitoring service will be able to quickly alert you to any changes in your credit report. You will get updates of recent activity and a copy of your entire credit report when you sign up.

What to do if you are an identity-theft victim Credit monitoring services could be worth the cost for people who have been victims of ID theft or for those who are at higher risk. In this digital age with continuous data theft incidents, more people are vulnerable. Considering high cost of restoring a stolen identity, credit monitoring services can save you hundreds of hours and dollars.

Consumer rights The credit monitoring services vary widely among different companies. The services cost anywhere from about $50 to $150 a year. The type of credit report monitored, email alert frequency, credit report update frequency, and credit score availability may vary from company to company.