Since its inception in 1997, nearly 3,000,000 consumer complaints have been reported to the Federal Trade Commission’s Consumer Sentinel database, a majority as a result of identity theft. The Better Business Bureau reports even more astounding findings; in 2006, 8.9 million US citizens have been victims of identity theft in some form.

As people are increasingly reliant on web-based banking, credit transactions, and purchases, the potential for identity theft becomes more prevalent. The vast majority of internet transactions and purchases occur without problems; most commercial websites offer a high degree of security and encryption to consumers. At the same time, many people have found themselves a victim of identity theft, or have a friend or family member whose credit or personal information has been stolen and used maliciously. Responding to an unsolicited email that appears to be from a consumer’s bank, or a major credit card company’s database falling victim to hackers are just some of the ways consumer identities are stolen.

Even by avoiding web-based commercial transactions is not a fail-safe from identity theft; the Federal Trade Commission notes that sensitive information is still obtained through “traditional” forms of theft. An identity theft perpetrator may steal consumer information through robbery, posing as someone who has access to personal information, or even “dumpster diving”. There are numerous ways information can be obtained for fraudulent use, whether low- or high-tech.

Just how an identity theft perpetrator uses personal or credit information can determine how much work and frustration will be necessary to repair a stolen identity. Victims of identity theft have reported new credit accounts or mortgages taken out in their name, new bank accounts, and even criminal charges. A lengthy and sometimes personally-debasing process of repair follows victimization. Many victims report facing intense scrutiny just to prove the information stolen is in fact theirs, and that they are not the identity theft perpetrators themselves. Additionally, victimization may temporarily ruin chances of obtaining new credit, whether credit cards, loans or even mortgages.

The potential for identity theft alone may seem overwhelming, let alone the process of reporting and repair once personal or credit information is compromised. Nonetheless, there are steps that can be taken to protect consumer information, and to resolve identity theft victimization.

The following articles can help:
• See “Current Trends in Identity Theft” and “How Identity Theft Occurs” to understand the risks of identity theft, whether offline or online.
• “Signs of Identity Theft” provides important indicators to know when personal or credit information has been compromised.
• “Identity Theft Solutions: Parts I-V” includes resources for Identity Theft victims
• See “Paper-based Identity Theft Prevention” as well as “Phone and Computer Identity Theft Prevention” to stop further activity that may compromise personal information, or protect it from potential theft


References

www.btplc.com. Security Report: Online Identity Theft February 2006

Federal Trade Commission Consumer Sentinel. Consumer Fraud and Identity Theft Complaint Data: January – December 2005

Federal Trade Commission. DETECT: Identify Suspicious Activity

Federal Trade Commission. DEFEND: Recover From Identity Theft

Federal Trade Commission: Facts for Consumers: Taking Charge: Fighting Back Against Identity Theft

Privacy Rights Clearinghouse. How Many Identity Theft Victims are There? What is the Impact on Victims?

Stana, Richard. Identity Theft: Growing Prevalence and Cost