Identity Theft Fact and Fiction
A heightened awareness of identity theft has brought a barrage of information about the crime to consumers. Some of this information is legitimate and helpful; other information is sensationalistic and unproductive. As a consumer, it can be difficult to sift through this mountain of information to discern between fact and fiction. Becoming educated about identity theft is indeed important, as the cost to businesses and individuals is considerable. In 2006, financial institutions were estimated to have lost close to $8 billion to identity theft. Similarly, the FTC estimates that about one million people per year become victims of identity theft. In this post, we’ll help you avoid the havoc identity theft can wreak on your finances by discerning between identity theft fact and fiction.
Responding to Identity Theft
As identity theft becomes more and more common, there is a growing demand for identity theft legislation to try to contain the problem. Some claim that this legislation is ineffective because the laws are too difficult to enforce to be a deterrent to potential identity thieves. However, the strict enforcement of existing legislation can and does combat identity theft effectively. For example, identity theft violations are punishable by up to 15 years in prison, and the FTC reports that 47 states now have identity theft legislation in place. Prior to these legislative responses, identity thieves largely fell through the cracks because the crime was so new. Of course, legislation alone is insufficient to wholly contain identity theft. To maximize its effectiveness, we must also supplement it with a general awareness of how identity theft works and how to defend against it.
Identity Theft: Just the Facts
Many business professionals and well-educated consumers are still ignorant of the following critical facts about identity theft:
- Anyone can become a victim of ID theft. Unlike many other fraudulent crimes, identity theft can happen to anyone. All a thief has to do is get access to your personal information to compromise your identity.
- Most victims are unaware of the crime for extended periods of time. For the most part, identity theft goes undetected by the victim until the identity thief has seriously damaged his/her credit and/or reputation.
- It is critical to report ID theft to the proper authorities once it is detected. Your local police should have a special identity theft report that you can fill out, and you should also file a complaint with the FTC.
