Overlooked Issues in Identity Theft

I would like to mention issues about Identity theft that are often overlooked. The first issue is the frequency of identity theft. Identity theft effects between 8.5 to 10 million new Americans each year. Although a car accident has a 1 in 300 chance of occurring, identity theft has a 1 in 23 chance of occurring. Even though there has been more vigilance and education on identity theft prevention, over 50 million Americans have been a victim of identity theft within the last 10 years.This leads me to my second point; identity theft is not 100% preventable. There are things that are not in our control. Ask yourself the following questions:

1. Have you ever filled out a job application?
2. Do you have a bank account?
3. Do you have a utilities account?
4. Have you been to the doctor in the hospital?

If you answered yes to all of these questions, these businesses and institutions already have your personal information such as your credit card number, social security number, birth date and name and address. Each of these entities use databases to store personal information. The average American is listed in 50 databases. Sadly, businesses, banks, stores, universities and even the government are not doing a good job protecting personal information.Security breaches at employers, universities and banks have effected over 100 million personal records of customers and employees. This occurs when unauthorized individuals illegally access customers’ or employees' personal information. It can be due to negligence, oversight, malicious intent or just plain accident.

For an example, on Jan. 31, 2009, Honey Baked Ham in Indianapolis had its computer server stocked with credit-card information stolen. On May 23, 2008 at Health Spring Inc (health insurance company), thieves broke into the Irving Texas regional office and stole a laptop computer containing personal information of numerous individuals, including names and Social Security numbers. This effected more than 15,000 records. On February 9, 2009, hackers broke into the Federal Aviation Administration's computer system and accessed the names and Social Security numbers of employees and retirees. Over 40,000 records were effected. (For a complete list of security breaches, click: http//www.privacyrights.org/.)The most overlooked issue of identity theft is the hours that a victim invests in clearing his/her name.

The Federal Trade Commission’s (FTC) Identity Theft Resource Center estimates that it can take as much as 330 hours to resolve problems associated with identity theft. This translates to 7 weeks worth of full-time work that is missed. This issue often needs seasoned investigators and lawyers to help the victim clear his/her name.Most victims lack the investigative and legal expertise to detect multiple cases of identity theft in several states. They often detect one instance which they are a victim, while failing to realize they are a victim in other cases. For instance, hundreds of identity thieves in several states can use personal information of one victim to open new credit accounts, file taxes and commit crimes under the victims' name. Smart thieves often use a bogus address so the victims will not realize that they are being billed. Victims usually have enough knowledge to detect one instance where they are a victim, but it often takes several years to discover the other instances where their identity has been compromised.

Eventually, identity theft victims discover that they have been victimized when creditors finally contact them at their real address or when the police arrest them during a routine traffic stop. As a result, many victims obtain a misdemeanor or felony on their records and their credit is damaged. These types of cases often require hundreds of hours to resolve. Each state has different laws regarding how to resolve identity theft; this is where support from a liscensed investigator and lawyer would be beneficial.