Identity Theft

IDENTITY THEFT or fraud is the wrongful obtainment and use of someone else's personal data in some way that involves fraud or deception, typically for economic gain. Many people become victims of identity theft each year, although there are no accurate statistics that can put an exact dollar amount on the cost that Americans suffer financially and emotionally each year. Monetary loss is just one side of identity theft. Victims suffer long-term physical and emotional strain as they seek to restore normalcy to their lives and their credit. According to a report issued in March 2002 by the U.S. General Accounting Office, identity theft is one of the fastest-growing crimes in the United States and the world today. Recent statistics show that approximately 700,000 individuals are victimized each year.

Unfortunately, identity theft can happen in many ways and with relative ease. Dumpster diving, mail theft, inside sources, impersonation, online data, direct access, and stolen purses and wallets are the most common ways an identity is stolen.[Page 413] Dumpster diving consists of thieves rummaging through trashcans searching for personal identification (receipts, bank statements) that can be used to steal an identity. A crosscut shredder may be the best investment any individual can make to prevent this form of identity theft.

Fraudsters steal mail from mailboxes that have been conveniently flagged as holding mail. At the end and beginning of each month, thousands of people pay their bills, place them in their mailboxes, and put the red flag up to alert postal workers that mail is ready for pickup. Unfortunately, this red flag also tells the would-be criminal that mail is ready for stealing. Credit card bills contain encoded credit card and personal identification on the bill, and banking information is located on the check set for payment.

A dishonest employee with access to personal records, payroll information, insurance files, and account numbers and sales records can wreak havoc on others' credit and facilitate identity theft. In New York City in 2002, three individuals were indicted for allegedly stealing the identities of more than 30,000 people, stealing at least $2.7 million. This scheme was spearheaded by a junior employee of a company that worked for the major credit reporting agencies and had access to credit histories. The circumstances that enabled this incident to occur could easily be repeated if credit data is not safeguarded.

Internet or online data has become common. Thieves can access data that consumers share through phone listings, directories, memberships, etc. Thieves can also purchase sensitive personal information from an online broker. Social security numbers, birthdates, and other personal information should never be shared over the internet unless one knows for certain that the site is legitimate and protected with encryption software.

Stolen purses and wallets are easy ways to assume someone's identity. Bank cards and personal information can also be stolen directly form one's house by people such as babysitters, friends, roommates, and cleaning personnel.

There is no foolproof way to prevent crime, but experts advise consumers can decrease the chances of becoming an identity theft victim. Guard personal information, never give out Social Security numbers to anyone unless there is a good reason for needing it. Destroy sensitive papers, like receipts, credit card applications. Invest in a paper shredder, be suspicious of telephone solicitors, use a locked mailbox, and check credit reports once a year from the three major credit reporting agencies.

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