What is Identity Theft?
Identity Theft is just what it sounds like: Someone steals your identity and pretends to be you. That could mean using your name to get a job, secure credit, avoid law enforcement, or any number of other unscrupulous activities.
In 1998, the Government Accounting Office reported that Identity theft was wide-spread, rapidly growing, and severely damaging. By 2002, ID theft had established itself as the number one consumer complaint (42%). A 2003 Federal Trade Commission study found there had been ten million identity thefts the previous year, costing five billion dollars, and taking 300 million hours to correct. At an average cost of $4,800 per victim, businesses losses were measured at $47.6 million. A 2003 ID Theft Resource Center study paints an even bleaker picture: $90,000 average damage per victim, and 600 hours spent fixing the problem.
Identity theft is growing so rapidly due to the ever-increasing availability of personal consumer information. Thieves obtain your name, date of birth and social security number from myriad places including employment and government files, and consumer sources (e.g., store account records, or an unscrupulous waiter or clerk). Once they have your personal data, the possibilities for damage are almost endless. Some common identity theft-related crimes are:
- Loan fraud, including credit card, car and home;
- Using a stolen identity to commit a crime, or when arrested;
- Opening fraudulent cell-phone or utility accounts;
- Opening fake bank accounts;
- Securing employment with a stolen identity;
- Obtaining a false social security card;
- Filing fraudulent tax returns;
- Falsifying medical billing information;
- Securing residential leases using false information;
- Security and investment fraud;
- Falsifying status as a legal U.S. resident;
- Fraudulently obtaining government services;
- Fraudulently obtaining government documents, such as passports and driver licenses;
Identity theft is a very personal crime. You spend your entire life building and protecting both your credit and good name. Then, suddenly, your identity is no longer your own; someone has stolen it for their own illicit gain. Often, damage is not limited to a poor credit rating -- you may be held accountable for crimes someone else committed. Through identity theft, you lose not only your good name. You lose the freedom to live the American dream.