Statistical evidence reveals that identity theft is on the rise. Victims have had their identies stolen online, but creative thieves continue to find other ways to steal
Statistical evidence reveals that identity theft is on the rise. Victims have had their identies stolen online, but creative thieves continue to find other ways to steal identities.
According to Gartner research - between mid-2005 and mid-2006 - an estimated 15 million Americans fell victim to some form of fraud related to identity-theft. A typical victim lost $1,408 in 2005, but this average rose to $3,257 in 2006. On top of that, the percentage of recovered funds dropped 26%. So, not only are there more consumers having their identities stolen, but they are losing more and recovering less.
Currently, hackers exploit online auctions and unregulated money transmittal systems, mimic sweepstakes and lotteries, etc. Identity thieves also take advantage of weaknesses in the millions of businesses that handle electronic payments. But identity theft has many different manifestations. Here are some cases from recent years.
Brown County, Wisconsin: An executed search warrant uncovered evidence of a counterfeiting operation. Stolen ID and credit cards were found in an apartment, along with blank ID cards.
In Lee’s Summit, Missouri, three stolen identities were allegedly used in mortgage fraud. Federal prosecutors charged a broker with fabricating loan applications. According to the indictment, victims' names, dates of birth and Social Security numbers were used on the forms. And out of the illegal funds received, the broker paid for two homes. This case is still pending.
In Yuba County, California, a notebook computer which was being used to back up the database for a an office that provides child support services was stolen. Information on the computer's hard drive included "Social Security numbers, birth dates, driver’s license numbers" of 70,000 persons, according to the Appeal-Democrat newspaper. Yuba County rushed to contact the people who were affected by the information break. Although the notebook was double-password protected, this is not considered adequate password protection by the Identity Theft Resource Center. The ITRC is s nonprofit organization focusing on identity theft prevention and counseling for consumers and agencies.
A couple of corrections officers who worked at a criminal booking center were arrested for stealing credit cards people who were being booked. Charges against them include "credit card fraud, identity theft and misconduct in office." The scheme netted over $5,000 - affecting eight detainees who had been arrested and processed at the center. One victim's credit card was used at a fast food restaurant, a department store and a gas station. Nearly $1,000 was charged on the card.
In this article we looked at how mortgage brokers, computer hackers, corrections officers, and small time crooks can be involved in identity theft. And research continues contribute to the rising statistics of a crime that wears many hats.
