Identity Theft

Crime Statistics

There are no sources of accurate statistics on identity theft. However, based on credit industry figures, the Privacy Rights Clearinghouse (PRC) estimates there were 500,000 to 700,000 thousand victims in 2000. A 1998 report by the U.S. General Accounting Office (GAO) tracked identity theft statistics from 1992 to 1997, based on figures provided by the Trans Union credit reporting agency (CRA). A graph in the report shows a dramatic sixteen-fold increase in the volume of telephone calls to Trans Union's fraud department during that six-year period (U.S. General Accounting Office 1998: 40). Other CRAs, such as Equifax and Experian, also maintain records on identity theft.

Reasons for the Growth of Identity Theft

There are three reasons why identity theft is rampant. First, it is easy for criminals to obtain the information needed, in particular, Social Security numbers (SSNs). Second, not all credit issuers use stringent application verification procedures, making it easy to obtain credit. Finally, because of law enforcement resource shortages and light sentences, the crime is low risk for the perpetrators.

Use of SSNs by the private sector has not to date been prohibited by law. As a result, SSNs are used as identification and account numbers by many entities, including insurance companies, universities, cable television companies, the military, banks, and brokerage firms. In about a dozen states, the SSN is used as the driver's license number.

Identity thieves obtain Social Security numbers by stealing mail, seeking documents that contain account numbers and Social Security numbers. They sift through the trash outside of businesses and residences to find unshredded documents containing identifying information. Dishonest employees can obtain the numbers in the workplace by obtaining access to personnel files or using credit reporting databases, commonly available in auto dealerships, realtors' offices, banks, and other businesses that approve loans.

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