Identity Theft Statistics- Fraud Library

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Identity Theft cost consumers more than 5 billion in losses in 2002. In contrast it cost financial institutions over 48 billion in loses in the same year according to the United States Postal Inspector Service.

 

"Your credit card information is just as vulnerable in a restaurant as it is on the internet" Howard Beales, FTC

The Federal Trade Commission reports that 43 percent of roughly 380,000 complaints involved the hijacking of someone's identity information, such as credit card or Social Security number, to steal money or commit fraud.  They also stated that identity theft is its number one source of consumer complaints - 42 percent of all complaints, in 2001.

" Every 79 seconds, a thief steals someone's identity, opens accounts in the victim's name and goes on a buying spree." -CBSnews.com, 1/25/2001

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Identity Theft Discussion

A study by Gartner Group reveals that 1 in 50 consumers has suffered identity theft. The survey, conducted by Gartner Inc., also indicates consumers are so concerned about the problem that they are calling for changes in the way electronic transactions are performed.

Understanding how the Fraudster got your identity is critical to preventing Identity Fraud and Identity Theft, the number one method of gaining information on a victim was dumpster diving. This is where a fraudster takes mail or information out of the trash about you to go and establish their identity as you. Consumer protection starts at home. When you consider that a lot of cases involve someone the victim knows. Consider other methods used to steal identities; Credit Card charges in stores, going through Human Resource Records at your workplace, impersonators acting like they work for well known companies like your phone company, bank or some other harmless company looking to verify records. Other methods have been from friends, family, from seeing an article or story about you in the media or online, and lastly by rental car agencies or other agencies that copy your drivers license or passport.

The Fraud Practice offers an Identity Theft Victim Reporting & Prevention Kit you that outlines the steps and forms you will need to use to keep your credit in good standing and to reclaim your credit if you are a current victim. You are not alone. MasterCard International Reported at their Risk Symposium in 2003 that they are experiencing 1440 cases of account takeovers per day, about one per minute.

Did You Know?

• According to the FTC it takes on average 12.3 months for a ID Theft victim to know they are a victim. With 20% of the cases taking longer than 13 months before they are discovered.
• According to the FTC over 70% of the victims reporting Identity Theft were over the age of 30. With consumers between the ages of 30-39 and over the age of 65 being at the highest risk.
• According to the FTC the top five ways a fraudster uses your identity when they steal it is to 1- open a new credit card, 2- Pay Phone and Utilities, 3 - Bank fraud, 4- Gain Employment, 5- Loan Fraud
• (CBS) Complaints about identity theft nearly doubled in 2002 as the fast-growing crime topped the government's list of consumer frauds for a third consecutive year.
• High Risk States - California, New York, Texas, Florida, Illinois, Pennsylvania, Georgia, Michigan, New Jersey, Ohio

According to the United States Postal Service:

• It will take the average ID Theft Victim 175 hours to RECLAIM their Identity
• It will cost the average Identity Theft Theft Victim $1,500 to complete the recovery process
• The average Identity Theft Victim will suffer over $5,000 in direct loses.

Even to this day, a large percentage of identity theft cases are still not reported to the police for a number of reasons, so these numbers only show what we can measure:

• A Federal Trade Commission Study in 2002 estimated that 700,000 people in the United States may be victimized by identity bandits each year, most agencies estimate this number a lot higher.
• Secret Service estimates that in 1997 consumers lost more than $745 million due to identity theft.  
• United States Postal Inspector Service estimates that in 2002 consumers lost more than $5 billion due to identity theft.

Warning Signs your Identity may have been compromised

• Credit Card Statements Stop Arriving
• Turned Down for Credit
• Calls to Employer doing employment checks
• Warrants for your Arrest

If you think you're safe because you canceled your credit cards and put a "stop" on your checking account after your wallet was stolen, think again. Once identity thieves have your information, they may open new accounts or lines of credit -- under your name, for their use.

Has your Identity been Stolen?

• Time is of the essence, act quickly to avoid further damage
• Don't take out your frustration on the Banks and Credit Card Companies, they did not de-fraud you, and being nice goes a long way
• Don't expect the Police to take care of your reporting, or to clear your name, that is not their responsibility
• Consumer protection starts with properly reporting identity fraud.

Take Control by focusing on the Phases

• Preparation - What are the things you need to have to quickly complete the reporting process.
• Verbal Notification - Who do you need to Notify? What do you have to inform them of? What information will you need from them?
• Written Notification - What types of documentation you need to provide to creditors and credit bureaus.
• Prevention - How can you avoid being a victim again.

Prevention is the best method to protect your identity from identity fraud.

By the time you find out you are a victim, the thief who stole your identity might have already ruined your credit history. The United States Postal Service reported that in most cases it takes months before a victim even realizes anything is wrong.

"I heard about Identity Theft on the news, it was scary, they had all kinds of data on what it was but nothing on how to avoid it" Charles Robards Florida

PROTECT yourself from being a victim by getting your free Identity Theft Reporting & Prevention Kit today and completing all of the Prevention steps. If you are still unfortunate enough to become a victim, you will be ready to ACT quickly by using the reporting steps provided in the kit.

The Identity Theft Reporting & Prevention Kit includes what you need for both reporting and protection, specifically for protection you will find:

• 24 Steps to protecting your identity, including your credit cards, personal paperwork, basic preventive measures and information disclosure;
• List of top 5 scams that are used to collect your information by Identity Fraudsters;
• Quick step-by-step "what to do if" data sheets, on having your wallet or purse stolen and what to do when there is a death in the family to protect your identity.

Consumer Protection Starts with Prevention..

 

 

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