Identity Theft -
What Is It?
- Identity theft is a crime where a criminal
assumes someone else's identity in order to profit by
fraudulent means.
- Identity theft is the fastest growing type
of fraud in the USA, the UK and many other developed
countries.
Identity Theft Defined
Identity theft - also know as identity
fraud, ID theft and ID fraud - is fraud perpetrated by a
criminal who assumes someone else's identity in order to profit
illegally.
There are
different types of identity
theft - but in simple terms, someone pretends to be you in
order to sign up for goods and services in your name - or they
may simply use your details to access your already existing
bank and/or credit card accounts.
You will
probably be completely unaware of this until you receive a bill
for something you haven't ordered or your credit card statement
arrives with a number of high value purchases of which you have
no previous knowledge.
The Extent of Identity Theft
Identity
theft is one of the fastest growing forms of crime and
hundreds of thousands of people worldwide are victims each
year. In the UK, identity theft is the single fastest growing
white-collar crime and is currently increasing at a rate of
500% each year. At that rate of growth, says the UK banks'
fraud avoidance bureau "this type of fraud will become the most
serious, with significant financial losses".
In September 2003 the Federal Trade
Commission (FTC) issued a report on identity theft which
estimated that almost 10,000,000 Americans were the innocent
victims of identity theft during 2002. The average identity
theft crime involved $10,200 worth of goods or services being
fraudulently obtained using the victim's details - which
suggests that the total loss to individuals, businesses and
financial institutions was in the region of $33 billion during
2002.
The Cost of Identity Theft
In many cases
individuals who are the victims of identity fraud will be
reimbursed, in part at least, by the financial institutions
involved. However, there may still be some significant loss
involved for the individual and there will certainly be a
period of extreme disruption. It may be difficult to get credit
in future and spurious entries onto credit records may take
years to clear up.
In the final analysis, although individuals
may receive some compensation, it is still the consumers who
have to pay for these fraudulent losses by way of higher
insurance premiums, interest rates and general fees.
Other Potential Problems With Identity
Theft
The potential financial losses and the
inconvenience of hours wasted in repairing your credit report
are bad enough - however, there is an even more frightening
scenario. There is always a small possibility that the person
who has stolen your identity may have done this not purely for
immediate financial gain.
It is possible that they may be involved in
activities which require them to assume an adopted identity. In
such a case, you may become identified as the perpetrator of a
crime yourself, rather than the victim. You may even find an
arrest warrant issued in your name.
One
documented victim of identity theft was a young lawyer in San
Diego. On her first day at the District Attorney's office,
she was arrested, handcuffed and marched off to jail for crimes
her identity thief had committed. Not the best first day at
work.
Take Action to Minimise The Risk of Identity
Fraud
There is no doubt that identity fraud is a
very serious problem in modern society. It affects both
individuals and businesses and is increasing in frequency year
on year.
It makes sense to take steps to
minimise the risk of becoming a victim of this type of crime.
However, it is also sensible to have a plan in place to
minimise the impact in the event that, through no fault of your
own, you fall victim to identity theft.
Types of ID
Theft...
| 