Why Identity Theft Isn't a Problem in Europe
U.S. and European Laws are Different in Many Respects
Identity theft is out of control in the United States. Victims spend considerable time and money repairing the damage done by these criminals and no matter how careful somebody is an identity thief can come up with new and better ways to impersonate anyone they wish. However, across the Atlantic in Europe this doesn't seem to be much of a problem. There are several reasons and they are explained in this article.
Social Security Numbers Are Used All the Time in the United States
These are used as an all purpose identifier by many Americans over the telephone and in person. In Europe, these numbers are used for one thing only – retirement benefits. Credit bureaus and banks have a different set of unique numbers to identify their customers. Europeans use national identity cards as a form of identification and these are fiercely guarded. One of the key pieces of information an identity thief needs is a Social Security Number. In the U.S. thieves can easily get their hands on it because the numbers are printed on all kinds of documents – which are then thrown away in trash cans.
Selling Private Information Is Forbidden in European Countries
Businesses can't sell information about their customers in some European nations, personal or financial. In the U.S. however companies routinely keep huge databases that contain sensitive information about their clients. Somebody who is reasonably skilled at computer hacking can get this stuff and use it to commit fraud and other crimes. With all of this data floating around where anyone can grab it it's no wonder identity theft has reached nightmare proportions in the United States.
Banks Sell Data to Anyone Who Can Pay
Private data can be given to any company by U.S. banks. There's no law that says they can't do it. Opting out of information sharing doesn't always work and sooner or later untold amounts of personal information will end up in the hands of the wrong people, including identity thieves. They could pose as telemarketers and try to pressure anyone who is just about to sit down to dinner to buy something and give up a credit card number.
Americans Use Credit Cards as Their Primary Currency
U.S. citizens are too attached to their plastic money. If a credit card is lost or stolen it would be simple for an identity thief to clone it using a technique known as "skimming." The criminal will run it through a handheld device that can pick up the information embedded on the magnetic strip on the back of the card. In European countries credit card issuers have taken an important step to stop fraud by replacing the magnetic strips with small computer chips which of course are impossible to copy in a short time. This makes it exceptionally difficult for thieves to steal identities and drain bank accounts.
There's Far Too Much Junk Mail in America
In the U.S. there are millions of pieces of junk mail delivered every day to urban and rural mailboxes. Product catalogs and credit card offers constitute the bulk of these unwanted materials that Americans are trying to get rid of but with limited success. Identity thieves snoop around quiet residential areas and raid mailboxes to gather names, addresses and other kinds of information necessary for their illegal trade. Europeans don't receive anywhere close to the amount of junk mail that U.S. residents get.
There are many things American lawmakers and financial institutions can learn from Europe. As long as private information stays in the possession of the consumers then cases of identity theft will likely decrease. Protect yourself by shredding documents and carefully reading the fine print about data sharing on the back of a credit card application.
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