Identity Theft on The Internet

I am sure everyone has heard about it, but what exactly does it meant to have your identity stolen and how much of a threat is it actually.

What is Identity Theft

Identity theft is a catch-all term for crimes involving illegal usage of another individual’s identity. The most common form of identity theft is credit card fraud. While the term is relatively new, the practice of stealing money or getting other benefits by pretending to be a different person is thousands of years old.

According to the non-profit Identity Theft Resource Center, identity theft is sub-divided into four categories:

* Financial Identity Theft (using another’s identity to obtain goods and services)
* Criminal Identity Theft (posing as another when apprehended for a crime)
* Identity Cloning (using another’s information to assume his or her identity in daily life)
* Business/Commercial Identity Theft (using another’s business name to obtain credit)

Identity theft may be used to facilitate crimes including illegal immigration, terrorism and espionage. Identity theft may also be a means of blackmail. There are also cases of identity cloning to attack payment systems, including medical insurance.

How Much of a Threat is Identity Theft to Me?

Surveys in the USA from 2003 to 2006 showed a decrease in the total number of victims but an increase in the total value of identity fraud to US$56.6 billion in 2006. The average fraud per person rose from $5,249 in 2003 to $6,383 in 2006.

Defense Link Article About Military Member Identity Theft Battle

The 2003 survey from the Identity Theft Resource Center found that :

* Only 15% of victims find out about the theft through proactive action taken by a business
* The average time spent by victims resolving the problem is about 40 hours
* 73% of respondents indicated the crime involved the thief acquiring a credit card
* The emotional impact is similar to that of victims of violent crimes

In a widely publicized account, Michelle Brown, a victim of identity fraud, testified before a U.S. Senate Committee Hearing on Identity Theft. Ms. Brown testified that: “over a year and a half from January 1998 through July 1999, one individual impersonated me to procure over $50,000 in goods and services. Not only did she damage my credit, but she escalated her crimes to a level that I never truly expected: she engaged in drug trafficking. The crime resulted in my erroneous arrest record, a warrant out for my arrest, and eventually, a prison record when she was booked under my name as an inmate in the Chicago Federal Prison.”

How To Prevent Identity Theft

One of the easiest ways is to enroll with an online identity theft protection service. By doing so, the company will monitor and track your online identity.

Basic services include daily credit bureau monitoring, email alerts plus unlimited toll free customer service to get questions and help immediately. Credit monitoring helps ensure that activities in your credit bureau file are accurate, so you can detect early signs of fraudulent activity by identity thieves.

Adverse consequences

The consequences of identity theft can be devastating. If you became a victim, life as you know it could be put “on-hold” indefinitely. You could spend years—and thousands of dollars— fighting “City Hall” to re-establish the simple things you take for granted, like your driver’s license and Social Security number. See what activities might put you at risk and what life as a victim could look like:

If you –> Then you might be at risk for…

Have children visiting Internet “social sites” –> Criminals opening credit in your child’s name.
Use your credit card for Internet purchases –> Stolen identity preventing closing on your new home.
Recently moved or changed your address –> Thieves draining your bank accounts.
Purchased a cell phone or changed providers –> Loss of cell phone and Internet service.
Download programs, music, photographs or videos –> Rejection of college loans due to faulty payment histories.
Use your credit card to book a trip –> Rejection by health insurance providers.
Enrolled for any service or financing on the internet –> Your personal information used to commit a crime.
Travel frequently for business or pleasure –> Your name on the TSA no-fly list.

Life without credit cards, cell phones and the Internet, unacceptable hassles when traveling, drained bank accounts… plus, surprise “show stoppers” when applying for a job, mortgage, college or car loan.

Resources and Data

National Data

• 2006 Identity Theft Survey Report
  PDF (2.19 MB)
• 2003 Identity Theft Survey Report

  PDF (4.5 MB)

FTC Complaint Data

• ID Theft Clearinghouse Data
  January 1-December 31, 2006

  PDF (253 KB)

• January 2005 - December 2005
  PDF (195 KB)
• January 2004 - December 2004

  PDF (1 MB)

• January 2003 - December 2003
  PDF (1.2 MB)
• January 2002 - December 2002

  PDF (1 MB)

• January 2001 - December 2001
  PDF (436 KB)
• January 2000 - December 2000

  PDF (240 KB)

ID Theft Program Data

• FTC Overview of the Identity Theft Program
  October 1998 - September 2003

  PDF (80 KB)

State Data

ID Theft Data Clearinghouse 2006
PDF (192 KB)

ID Theft Data Clearinghouse 2005
PDF (192 KB)

ID Theft Data Clearinghouse 2004
PDF (44 KB)

ID Theft Data Clearinghouse 2003
PDF (1.2 MB)

State-by-State Data for 2002

Consumer Sentinel
PDF (64 KB)