ID Theft Is Fastest-Growing Crime in America
According to recent FBI statistics, identity theft is the nation’s fastest-growing crime, claiming almost ten million victims per year. Identity theft is also the largest source of FTC complaints. Quite obviously, this heinous crime has exploded in popularity in recent years, but why? Identity theft was virtually unheard of until the late nineties, and now it has reached epidemic proportions. The drastic, sudden change may seem bewildering at first blush, but closer examination reveals the reasons behind the ID theft crime explosion. Here are just a few theories on why ID theft has become such a widespread problem:
- Popularity of credit and debit cards. In 2003, one-quarter of personal expenditures in the U.S. were made using credit or debit cards. The burgeoning popularity of debit cards is especially remarkable, with debt-card use predicted to rise about 13% this year alone. When consumers use their cards so frequently, they broaden the number of people who have access to sensitive information. For instance, handing over a credit card to a server in a restaurant gives him/her enough time to write down the card number, the CCV, and a viable forgery of your signature. Likewise, when you punch in your debit card pin number at the grocery store, you could have an entire line of people behind you watching you do so. A recurring theme in the explanation of identity theft is the proliferation of technology.
- Internet use. Though most Internet merchants go to great lengths to encrypt and secure their sites, this does not make consumers invulnerable to online identity theft. Consumers regularly enter information like credit card numbers, addresses, social security numbers, etc. onto websites that they rarely bother to check for secure technology. Sites like eBay have suffered several phishing scams in which members are duped into revealing their user names and passwords with ersatz email messages.
- Lax retailers. When was the last time a cashier or merchant really compared the signature on the receipt with the signature on your card? Chances are, you probably can’t recall even a single instance when a retailer actually took this precaution. If thieves know that merchants will not subject the forged signature to scrutiny, they can get away with almost anything. Similarly, even debit or credit cards that list “see ID” in the signature panel seldom have that request heeded.
- Visibility. Social networking sites, personal blogs, and even professional sites all increase our visibility to identity thieves, and we’re seeing the consequences. For example, in 2000, a family doctor in San Diego had his identity stolen from information listed on the Medical Board of California’s website. A woman obtained his medical license number and social security number and used them to buy almost $200,000 of medical supplies in his name.
