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The Facts About Identity Theft

In 2008, 10 million people reported being victims of identity theft.

1 in 10 consumers in the United States have been or will be victims of identity theft.

In 2005, 1.5 million Americans had a bank account or a credit card account compromised

According to the Justice Department, households with an income of $70,000 or more are twice as likely to become victims of these thefts.

Nearly 10% of identity theft victims were selected as medical identity theft.

Last year, 50 million U.S. citizens reported utilizing a credit monitoring service.

44% of Americans regularly check their credit reports.

Depending on the amount of damage done, it takes an average of 6,000 hours to repair the damage done after an identity theft. This is due to the victims having to contact banks, credit card companies, debt collectors and law enforcement.

44% of identity theft victims knew those responsible including family members and close friends.

The cost to victims averages $700 to $1,400 in out-of-pocket expenses to repair damage done to their credit.

After becoming victims of identity theft, nearly 50% had difficulty securing loans even after resolving the the disputes with the credit agencies.

In 2008, it is estimated that 36 million personal and financial records stored and kept by government entities and private companies were compromised and stolen.

What is Identity Theft?

Identity theft occurs when an individual takes the personal information of another such as name, social security number,  credit card information, etc. and uses that date for personal gain causing financial fraud and distress to the victim. The Federal Trade Commission estimates that 10 million Americans fall victim to this crime annually with this rate increasing. According to one financial watchdog group, these victims worldwide lost nearly 225 billion dollars in 2008.

How Does Identity Theft Occur?

Theft or Stealing: Taking personal information by stealing purses, wallets, PDAs, computers or briefcases. This also includes the mass thefts of entire data banks from large companies through computer hacking, etc. 

Pretexting: The impersonation of the victim to gather information from banks, credit or insurance companies, etc.

Bribery: Paying employees of banks or credit card companies for your information. Those who make minimum wage as data entry clerks are easy targets for those willing to pay thousands for other's personal files or information.

Phishing: When thieves pretend to be a credit card company, bank or some other financial entity and contact their victims asking for their personal information.

Dumpster Diving: Literally going through trash cans and business dumpsters looking for discarded receipts, loan applications or statements.

Shoulder Surfing: Looking over the shoulders of unsuspecting victims as they make purchases with their credit or bank cards. Many times, bad guys are able to acquire PIN and bank account numbers just by watching others.

How Can You Prevent Your Identity From Being Stolen?

1.) DO NOT give any of your personal information to some one who calls or contacts you. ALWAYS ask for a name and  return the call only after verifying the information through directory assistance, the contact number on your statements, etc. Remember: Your bank, credit card company, retailer that you shop with, etc., already have your financial information. They have no need to call or email you and ask for it again.

2.) Check your credit report frequently and question any and all discrepancies. Look specifically for unauthorized purchases, the issuance of another card or change or address that you did not make.

3.) Be diligent about shredding unwanted or outdated financial records. This includes tax records (it is recommended that you keep these for seven years before disposing), bank statements, credit card applications, old insurance policies, and old vehicle registration information. These forms often times contain personal information such as dates of birth and social security numbers. Just throwing away these documents makes them available to dumpster-divers and trash pickers. Utilizing a cross-cut shredder makes it nearly impossible for a thief to gather the data needed to make you a victim.

4.) Be creative and secretive with personal passwords. Avoid using birthdates, addresses, anniversary dates or alpha-numeric successions. Don't use the same password at work as you do for your personal information. Never share your passwords with anyone. The Less people who know, the less likely you will be a victim.

5.) Be the primary keeper of your finances and personal information. There are many paid services available to protect your identity, money, etc. but don't rely on strangers to solely protect what is yours.