Most people know what identity theft is by now. According
to the law, it is the appropriation of an individual’s
personal information (social insurance number, bank account
information, address, etc.) with intent to commit fraud by
impersonating the victim. Most people also know (or should
by now!) how to protect themselves against identity theft.
Yet the problem still occurs, prompting a few recent studies
that have discovered some very interesting findings and angles
on the issue.
Surprising News
According to results of a study published earlier this
year by the Council of Better Business Bureaus, the leading
cause of identity theft is a lost wallet or checkbook, not
the much-vilified Internet! In fact, only 11.6 % of the identity
theft cases in the study were enabled by computer crimes.
The nasty surprise is that in many cases the perpetrator
is known, and in half of these cases, that perpetrator is
a friend, family member or an employee of the victim. According
to the statistic, a co-worker of yours is much less likely
to commit that fraud (4% of cases) than a relative of yours
(32%)! Employees who have access to personal data stored
on company systems are a “healthy” cause of concern
as well (13%).
The good news is that overall, identity theft is not growing
in the US. The number of victims has actually dropped from
10.1 million in 2003 to 9.3 million in 2004, with the median
value of the fraud remaining constant at $750. In the US,
most crimes are self-detected by the victims, with the vast
majority of detection happening while reviewing paper documents
and bills.
Identity fraud has flourished in other areas, however, such
as the UK, Southeastern Asia and Eastern Europe. It is believed
that the practice of Information Technology outsourcing to
Southeast Asia and Eastern Europe in recent years is linked
to the expansion of this type of fraud.
Deep Roots
It would be easy to solely blame identity theft on computers,
on-line business and poor e-commerce practices. Yet our
culture of instant-gratification is at the root cause of
the problem. It works like this: consumers’ minds
are pumped by marketing techniques that make them want
to buy whichever latest and greatest car or electronic
appliance is on the market. Credit needs to be made
readily available to make these sales happen. With just
a magical number (social security will do) and an address,
a hurried and untrained store clerk will be happy to afford
the credit in a matter of minutes – not enough time
for a thorough check. This fast turnaround makes it easy
for an impersonator to be a successful credit applicant
and get the goods based upon an identity scam. Correct credit checks need the proper training and time
allowed to confirm that an applicant is indeed who they say
they are. Credit card information, a driver’s license,
social insurance number, an employer’s address, and
a reference who can be contacted to verify identity are becoming
much more common now.
What To Do
People need to take measures to protect themselves against identity theft. These
measures range from common sense to becoming more savvy with technology.
Do not make your personal information readily available.
To do this: avoid giving away more than is evidently necessary
to do business; shred or destroy unneeded documents carrying
personal information so that they cannot fall into the wrong
hands; check your invoices, bank statements and credit rating
regularly. Do use updated anti-spy protection, firewalls
and encryption when doing business over the Internet, protect
your passwords and change them frequently. Don’t fall
into the “phishing” net by never responding to
emails that ask for personal information and passwords, and
retype a website address rather than clicking the link sent
to you.
Awareness, education and prevention will keep your identity
protected, and avoid the consequences of compromised credit
rating, financial loss, wasted time and aggravation that
occur due to having your
identity stolen.
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