| Recent episodes of security breaches into credit-card | | | | annual corporate and personal losses of $53billion from |
| databases, such as the case at | | | | the crime, victimizing about 5% of all US adults. |
| CardSystems Solutions Inc where 40 million accounts | | | | Reports on ID theft filed withthe commission almost |
| were hacked, have made a high majority | | | | tripled from 2001 to 246,000 in 2004. The FTC cited |
| ofconsumers more concerned over identity theft. | | | | greater awarenessof the crime as a key factor in the |
| The term has been generalized to refer to various | | | | higher number of reported cases. Victims also end |
| crimes. However, many officials havenarrowed ID | | | | uplosing job opportunities, having loan applications |
| theft to the use of stolen personal or financial data to | | | | rejected or unfortunately, even beingapprehended for |
| establish a newidentity, particularly in setting up a new | | | | another person's crime. |
| account using the unsuspecting owner's name. | | | | Figures from the American Bankers Association show |
| Thisnarrower definition separates ID theft from other | | | | that check fraud cases increased from $4.3billion four |
| types of bank fraud, including ATM cashwithdrawals | | | | years ago to $5.5 billion in 2003. However, the ABA |
| using a stolen card. | | | | said that losses from thecrime fell from $698 million to |
| Ironically, most of these violations and similar crimes | | | | $677 million over the same period, due in part to |
| involving unauthorized access topersonal data and | | | | improveddetection methods. |
| financial information remain outside the realm of high | | | | PREVENTING ID THEFT |
| technology. Javelin | | | | An increasing number of banks, credit card companies |
| Strategy & Research has found that victims knew the | | | | and other financial services providersare advising their |
| criminal involves in a fourth of allfraud cases. The | | | | customers to invest in a paper shredder. Having one at |
| perpetrator was either a friend, family member, | | | | home will enableindividuals to destroy material featuring |
| neighbour or a dishonestemployee working at home. | | | | Social Security numbers, credit card data and |
| The consultancy added that even instances when a | | | | otherdetails, reducing the likelihood that criminals will |
| stranger commits ID theft, the percentage ofcases | | | | chance upon any personal informationthat can be used |
| where complex computer hacking was involved was | | | | to commit fraud. |
| only about 2.2%. This means thattraditional methods | | | | The American Bankers Association advises credit |
| were used more: the survey indicated that about 29% | | | | card and bank account holders to monitor thetransit of |
| of victims had theirpersonal information compromised | | | | any statements or bills delivered through mail, including |
| by criminals stealing mail or coming across lost | | | | a check with theforwarding company and the post |
| ormisplaced checkbooks, wallets, and cards. | | | | office for any unusual delay. |
| A related report from MasterCard International Inc's | | | | J.P. Morgan Chase & Co. credit-card fraud senior vice |
| TowerGroup unit discovered that up tohalf of | | | | president Mike Cunningham cautionsagainst the |
| debit-card fraud happens after the card is intercepted | | | | inclusion of any personal data in forms unless |
| by someone who knows thevictim and the personal | | | | absolutely needed. Cardholdersshould note that only |
| identification number. In some cases, the fraudster | | | | financial institutions and their employer are the only |
| simply retrievedcredit card or bank billing statements | | | | entities thatrequire their SS information, with retailers |
| lying carelessly around the home, in the mailbox oreven | | | | and other organizations having no right to |
| from the trash bin - a practice called "dumpster diving." | | | | anydisclosure. |
| Thus, although electronicattempts to steal are | | | | E*Trade Financial Corp. and other institutions are |
| increasing, ID theft has remained driven mainly by | | | | encouraging customers to set up onlineaccounts, |
| traditional schemes. | | | | arguing that such systems are more secure and less |
| Other methods used by fraudsters to victimize people | | | | costly than having paperstatements. |
| include stealing employee records,bribing staff to gain | | | | On Washington's part, President George W. Bush |
| access to corporate records; posing as an company | | | | signed the "Identity Theft Penalty Enhancement |
| executive, bankofficial or other authority figure to | | | | Act" into law in July last year. The new law defined |
| secure credit reports; and diverting someone's mail toa | | | | aggravated ID theft as the use ofanother individual's |
| target address using a "change of address form." | | | | identity for a criminal purpose. The act also set up |
| ID thieves have also become adept at "phishing", or | | | | mandatory penaltiesand raised current penalties for the |
| creating deceptive emails or onlinepersonal data forms, | | | | crime. |
| making some unknowing users disclose information | | | | For those who realize that they have been victimized, |
| and realizing onlylater that they have been victimized. | | | | the FTC advises the immediate filing ofa fraud alert |
| Use of this modus operandi has accompanied | | | | with credit bureaus Equifax, Experian or Trans Union. |
| theincreasing integration of the Internet into anyone's | | | | The commission also urgesthe closure of affected |
| daily routine. | | | | accounts and similar filings with the police and the FTC |
| The U.S. Federal Trade Commission projects total | | | | itself. |