Identity Theft

Identity theft is a crime that can have enormous implications on an individual's financial situation. The criminal obtains vital information about their victim, for example the driver's license, social security number, bank accounts, etc., and uses the information to steal the identity of the victim. Using this information, the criminal then uses the stolen identity to access credit, services, money and merchandise in their victim's name. The impact to the victim can be severe, including total financial ruin. This financial ruin almost always includes an utterly destroyed credit history and credit rating. The criminal can also use the stolen identity in participating in illegal activities, leaving the victim not only in a state of financial ruin, but under criminal investigation as well.

Many individuals do not even know they've fallen victim to identity theft until they apply for credit or loans. Only then do they realize that their credit history has been severely jeopardized. How do you know if your a victim? Have a credit evaluation done.

One of the top concerns of U.S. citizens in recent times include issues of privacy. An example of such privacy risk is now being addressed by the FTC in the area of bankruptcy proceedings. Many personal details are often recorded in these proceedings, including social insurance numbers and financial information. This data is often obtainable through court documents and proceedings, creating a high risk that personal data may fall into the wrong hands.

Identity theft is on the rise in America and elsewhere. Estimates for 2001 suggest that over 700,000 American consumers were the victims of identity theft. The Inspector General of the Social Security Administration is on the record as calling identity theft a "national crisis". The FTC believes that identity theft is the fastest growing crime in America today.

Don't be a victim!!

The identity theft center offers the following statistics:
- Certain government agencies estimate that identity theft cost American consumers over $945 million per year since 1997
- A Grand Jury in Florida estimates the average cost for the business community for each episode of identity theft is $17,000 per victim. (Over $11.9 billion dollars a year)
- The costs to federal agencies are enormous. Per identity theft case, the cost to the U.S. office of Attorneys is $11,443, and per financial crime investigation is $15-20,000.
- Victims of identity theft spend, on average, over 600 hours of their time working to clear their name.
- Victims of identity theft spend, on average, over $5000 to $6000 of their money working to clear their name.

It is important that all Americans understand how to minimize their risk of falling victim to identity theft, as well as what to do if they do become a victim.

Source: SCS