Identity theft is pervasive, and statistics show that it is a growing issue. Deadlock between financial institutions and government agencies about what to do to reduce the problem has resulted in the burden of identity theft prevention falling on consumers.
In an age of smartphones, social networking, and pre-screened credit offers by the dozen, this has proved difficult.
Consumers should educate themselves about identity theft, the risks, and the surprising ways that criminals obtain their personal information so that they can reduce the risk. These ten shocking facts about identity theft should provide motivation:
1 – In 2010, 7% of households in the U.S., about 8.6 million households, had at least one member over the age of twelve who experienced some type of identity theft. – The U.S. Department of Justice, Bureau of Justice Statistics
This indicates that one in ten American families were victims of identity theft over the course of one year. If one in ten families are affected by identity theft, we all know someone who has been a victim, and as the incidence of this crime increases the chances are greater that the next victim will be someone we know quite well.
2 – 70% of individuals who have had their identity stolen are not successful in clearing the negative information from their credit reports. – Identity Hawk
It’s frightening enough for an unauthorized credit card to be opened with one’s credit history, but it has a huge negative impact on a credit score if that credit card goes unpaid and gets reported in collections. What’s even worse is when a credit bureau refuses to fix the error, and as this statistic suggests, this is happening much more frequently than most would assume.
3 – It takes an average of 21 hours to resolve an instance of fraud. – Javelin Strategy and Research
This statistic refers to the hours taken to resolve one instance of fraud – for example, an unauthorized credit card. 21 hours is three working days, or a whole weekend. However, if one’s entire identity is stolen, meaning that new lines of credit have been opened, existing financial accounts have been compromised, and addresses or names have been changed, TrustedID estimates that it takes 600 hours to correct the problem. That’s the equivalent of working a full-time job for fifteen weeks! This shows how important it is to have identity theft protection.
4 – Those who have used social networking for five years or longer are two times more likely than newer users to experience identity fraud. – Javelin Strategy and Research
At first, social networking may seem to have little to do with identity theft, but considering how much information we share on social networking sites, it’s clear why criminals would target social networks for identity theft scams. As more social networks move to requiring users to report their real names and information, social networking-related identity theft may increase over the coming years.
5 – Fewer than 2,000 cases of identity theft and aggravated identity theft were prosecuted at the federal level in 2010. – U.S. Department of Justice, the Offices of the United States Attorneys
Since 1998 when identity theft was made a federal crime, the Department of Justice has been tracking cases of identity theft. The extraordinarily low number of prosecutions is partly because the wheels of justice move slowly and cases may not be filed until months or years after the crime, but also because many identity thieves are never caught – whether they were operating in the U.S. or abroad.
6 – 5% of all identity thefts involve children. – The Federal Trade Commission
In many ways, children are the perfect victims for identity theft: their credit report is spotless, and the crime probably will not be discovered until they reach adulthood. Additionally, children’s information is widely available to extended family, and unfortunately, it is often an extended family member who is the perpetrator of identity theft on a child. Parents should be aware of this and take steps to safeguard their children’s personal information.
7 – An identity is stolen in the U.S. every four seconds. – TrustedID
There are 86,400 seconds in a day, so 21,600 people are victims of identity theft every day; that’s 7.8 million people per year – and growing.
8 – Florida has the highest rate of identity theft complaints in the nation, followed by Georgia, California, Arizona, and Texas. – The Consumer Sentinel Network
It’s interesting that the five states with the highest rates of identity theft are in “sunshine” states with ideal climates, but there may be a correlation. These states are also where many people go to retire. Unfortunately, those of retirement age just aren’t as familiar with the internet and modern technology, and are often targeted for identity theft scams.
9 – The Internal Revenue Service reported 260,000 identity fraud attempts related to taxes in 2011 alone. – The Internal Revenue Service (IRS)
Even among law-abiding citizens, the IRS can invoke a certain sense of dread; it is one government agency that most of us do not want to provoke. It seems that identity thieves are willing to go to great lengths to steal our personal information, but at least the IRS is aware of it. Many of the identity fraud attempts the IRS reported dealt with social security claims and tax refunds, so individuals should be cautious about sharing information about their IRS accounts.
10 – Identity theft costs U.S. citizens and businesses $52,000,000,000 a year. – The Federal Bureau of Investigation (FBI)
Fifty-two billion dollars a year is an almost incomprehensible amount of money, and in economic times when so many are struggling to make ends meet things can quickly deteriorate when identity theft enters the picture. It is truly much easier to take steps to prevent identity theft than to deal with the consequences later.
Jon writes for an identity theft protection review website. You can click here to see some reviews on recommended services.
Credits: Photo courtesy of Penny Mathews.