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Identity Theft

Although identity theft is often heralded as a new crime threat, the phenomenon itself is by no means unique to the information age. Throughout history, criminals have used false identities to commit their crimes. However, as identity theft emerges as a growing crime problem in the 21st century, it has new characteristics which are closely linked with the features of a global and technologically advanced society. The Internet, e-mail, and mobile phone technology have transformed the ways in which we live our everyday lives and, in many ways, have facilitated the criminal enterprise. With all of these changes come new risks and, with them, new challenges. Increasingly, we are required to prove our identities as we interact with others in both real and virtual environments, and the identification process is more important now than it has ever been. Consequently, different aspects of an individual's identity have themselves become attractive commodities in the criminal world. The emergence of identity theft as a recognized social problem shows how the changing value of personal data in modern society has had an impact on the nature of crime.

Definitions of Identity Theft

There is no single accepted definition of identity theft, and it is common to find broad definitions presented in the media and policy documents. Broadly defined, identity theft occurs when a criminal uses another person's personal information (such as name, address, social security number, or credit card details) without permission to commit fraud or other crimes. It is often, therefore, referred to as an “enabling offense”—the identifying information is a tool that the criminal needs to commit the “target offense.” The problem with broad definitions, however, is that they ignore the important fact that the target offense can range from simple credit card fraud to the permanent adoption of a false identity and the more complex activities of organized criminal networks. As a result, by treating all offenses where an identity has been misused under one category, we fail to properly understand the motivations and methods of identity thieves. Moreover, there is a danger that we will confuse the quite different impacts on the victims of the enabling versus target offenses.

A better approach is to distinguish between two different types of identity theft. Identity frauds are temporary offenses in which personal data are borrowed to commit a fraudulent offense. Here, the identifying information serves merely as a tool for the criminal to use to commit another offense. The motivation for these offenses tends to be financial, either to obtain goods or services or to establish credit or a loan, and the impersonation is temporary. Identity thefts are cases in which the victim's entire identity is permanently appropriated (often referred to as “Day of the Jackal” cases). The identity of another individual is “hijacked” by the fraudster with the aim of a permanent appropriation. This may be for financial reasons, for example, to escape an existing record of bankruptcy, or it may be to hide a criminal record or escape a previous life.

Extent of the Problem

Despite repeated claims that identity theft is one of the world's fastest-growing crimes, relatively little is known about the true extent of identity theft and identity fraud when compared with other crimes. The best estimates come from the United States, which recognized identity theft as a statutory offense in 1998 with passage of the Identity Theft and Assumption Deterrence Act and where a number of national surveys on the subject have been conducted. The Federal Trade Commission administers a central repository for identity theft complaints and, in 2005, reported 255,565 incidences of identity theft, totaling losses of $56.6 billion. However, victim surveys (including the National Crime Victimization Survey) estimate the victimization of between 3 and 4 percent of Americans annually.

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