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Identity fraud is the most common type of consumer fraud in the US, with criminals stealing personal information to defraud others. The internet is a prime hunting ground for identity thieves, but pre-internet methods are still effective. Victims must replace all electronic identity, which can take years.
Identity fraud has occurred at a record rate since the creation of the Internet, making it the most prevalent type of consumer fraud perpetrated in the United States. Criminals steal personal information (credit card numbers, ATM pin numbers, social security numbers, or even bank account numbers) and use it to defraud others. Identity thieves who have stolen a person’s identity have been known to empty bank accounts, rack up huge credit card bills, buy cars and secure mortgage loans. Identity fraud is a serious matter and is subject to federal prosecution in many jurisdictions.
The incidence of identity fraud has increased in large part due to the large amount of private information individuals unknowingly provide on blogs, websites and social networking sites. The web is the prime hunting ground for the identity thief, but pre-Internet methods of stealing a victim’s identity remain effective. The opportunities for identity theft exist in abundance.
Internet fraud can result from a criminal breaking into a person’s mailbox, stealing credit card bills and bank statements to obtain private financial information. Fraudsters have also been known to “dump-dive” or pick up at curbside trash cans for bills and bills that have been thrown away. A standard practice of the identity thief is to go to the post office and present a fake change of address card in the victim’s name. All victim mail is forwarded to an anonymous address, and in many cases the forwarding may not be noticed for a week or more.
Identity fraud sometimes occurs as a result of a criminal taking advantage of a potential victim’s good nature. The burglar calls the victim’s home and pretends to be a fundraiser for a well-known charity or disaster relief. A compassionate person who wishes to donate usually asks if he can pay with a credit card. The identity thief starts using that card number for nefarious purposes almost immediately. Social Security numbers are captured in a similar way, with the identity thief posing as representing a government agency.
The methods of obtaining personal financial information for the purpose of identity fraud are extremely numerous. The problem for an identity theft victim goes beyond the fact that her credit can be ruined. The merchants and banks defrauded of stolen information are often slow to believe the victim’s claims of innocence. Virtually all of the victim’s electronic identity—from driver’s licenses to credit cards to loan numbers to email addresses—must be changed. The process of replacing this information can sometimes take years.
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