Identity Theft Research Findings

Identity Theft on the Rise

With advances in technology and law enforcement practices, crime rates throughout the United States have mostly declined over the past 25 years. However, one major crime continues to increase at an alarming rate – identity theft. Part of the reason for the crime’s upward trend is that it’s a very broad term, identity theft may refer to a number of different fraud related crimes, but there’s no doubt that it’s also happening at a higher frequency. More people find themselves victim to identity theft every year and there seems to be no end in sight to the ugly trend. As technology continues to advance and more aspects of our lives move online, criminals find more opportunities to steal identities. Due to the ever-evolving nature of identity theft, law enforcement has had a difficult time keeping up with the crime. Despite identity theft protection standards being at an all-time high, don’t expect these crime rates to decrease any time soon. Here’s a look at some of the recent findings in identity theft research and what they mean to you:

What the Findings Mean

• Although anyone can be a target for identity theft, recent studies show that your identity is more likely to be stolen by someone you know, rather than a stranger. That means friends, family, co-workers, or anyone else that may have access to sensitive information is more likely to steal your identity than a hacker you have no association with.
• Between 2005-2006, it’s estimated that about 15 million people in the United States fell victim to identity theft in some form. Statistics show that the average victim lost about $1,500 in 2005 and over $3,200 in 2006. The amount of recovered funds for the victims dropped by over 25% in 2006. So, not only are there a growing amount of identity theft victims, they are now losing more money and getting less of it back.
• Many identity theft researchers break the crime down into three stages – the criminal’s acquisition of the victim’s identity; the criminal’s fraudulent use of the identity; and the victim’s discovery that their identity has been stolen. Evidence shows that the quicker the victim discovers their identity was stolen, the less money they will lose due to the crime. Obviously, you don’t want a criminal to ever have access to your identity, but the sooner you know about it, the less damage they can do. That’s why it pays to check your credit report every couple months.
• While there aren’t any clear statistics to prove it, displaying personal information about yourself on the internet makes you an easier target for identity thieves. Many teenagers and young adults leave sensitive information on popular websites such as MySpace and Facebook, which have become breeding grounds for identity thieves. The anonymity of the internet makes it the perfect forum for identity theft.