FREE Identity Theft Prevention Checklist Click Here
IDENTITY THEFT NEWS
The Cost of Identity Theft, Trends and Many Ways Identy Theft and Fraud Can Occur...
Identity theft costs victims and the government millions of dollars every year in losses and recovery.
The average victim may spend thousands of dollars working to restore their credit and their good name after a crime has happened.
In fact, if you tally up the money lost by all federal and international agencies, the amount lost would be in the billions of dollars. If you tally up the numbers of dollars lost by consumers, the numbers would be staggering. The sad news is these numbers keep rising, which is why it is so important we start learning ways to stop or slow identity theft and fraud from happening now rather than later.
Apart from your reputation and dignity, identity theft can cost you a lot of money. FTC reports suggest that fraud and identity theft account for business losses of more than $50 billion dollars every year. That accounts for just under $5,000 for each person affected by identity theft.
The FTC also reports that together Americans may spend as much as 300 million or more hours recovering from identity theft. People spend this time recovering their name, reestablishing their credit and closing fraudulent accounts (not to mention reclaiming their identity).
Many thefts occurred in urban or suburban areas. That does not mean however, that crimes do not occur elsewhere. There are many statistics validating crimes throughout the globe, in urban, suburban, rural and other areas.
People victimized by identity theft spent a minimum of one month or more resolving problems related to identity theft. Some have taken years at great cost or loss! These problems ranged from return of money to confrontation by debt collectors or creditors, banking problems or difficulty using their credit cards or getting credit following the incident.
It is important to note that statistics vary from organization to organization based on the populations surveyed and the number of people surveyed. Some organizations, including the FTC, collect information on fraud and identity theft, whereas organizations including the Bureau of Justice Statistics focus more strictly on identity theft crimes.
The FTC and several consumer advocacy groups now report that victims of true identity theft may spend as much as 10 years recovering from identity theft crimes, especially complicated crimes including fraudulent employment, bankruptcy or crimes committed under one’s name. It isn’t uncommon for victims to also pay as much as $15,000 or more trying to recover from severe forms of identity theft. Worse, there is fairly little in the way of recovery support for victims of identity theft (though new groups are forming each day).
Given the frequency with which identity theft occurs, you might suspect that federal agents are diligent about capturing criminals.
Unfortunately the FTC reports they often catch less than 5% of all criminals in the act of a crime.
While a consumer may be able to recover from a crime, it is often hard to discover who committed the crime, especially in the age of modern technology.
Many times, crimes that happen to people living in the states occur in foreign territories. In cases like this U.S. laws may not apply and U.S. agents may not always be readily available to catch a criminal working in cyber space. They may have no resources to find out where the crime originated, so in these cases the losses experienced by consumers can be very destructive.
Modern technology makes it easy for criminals to gather consumer information and personal details with or without their knowledge. How do criminals do this? There are many ways. We will talk more about how identity theft happens in the next chapter.
The good news is the U.S. Federal Trade Commission now publishes an annual report revealing helpful and relevant information about identity theft and crimes. Government agencies and local law enforcement officials are working together to help resolve these crimes daily. They will continue to collect information annually and work to find new ways to fight back against crimes including fraud and identity theft.
Here is what you need to take away from all of this. Statistics verify that identity theft and fraud are two related crimes, and both are on the rise. The advent of modern technology has made identity theft and fraud much easier. With less than 5% of all criminals engaging in criminal activity caught, it is up to consumers to learn how to protect themselves and their family from these crimes.
You’ve already taken the first step, learning about modern trends in identity theft. Now it’s time to look at some of the various categories of identity theft, so you gain a better understanding of how criminals work and where they work.
If you are reading this guide, you are preparing yourself for a journey, a journey that will protect you from suffering from identity theft. You may have already become a victim, and may be looking for more information and advice about stopping identity theft and repairing the damage that identity theft caused you.
Either way, we are here to help you.
What Identity Theft Can Do To You
We often take our liberties for granted. What you know life to be can suddenly change if you’ve been a victim of identity theft.
While you’ve been busy with your day-to-day life someone could have stolen your personal information and racked up debts or committed fraud – all with your name on it. What happens then can be anything from being denied employment, credit or even being arrested for a crime you didn’t commit.
Identity theft is that serious.
Victims of identity theft can spend years paying back debts or fighting to restore their credit as well as their reputation. Finding out you are a victim of identity theft can be frightening and a source of anxiety even after you’ve resolved the issue.
According to a survey conducted by the FTC (Federal Trade and Commission) 4.6% of Americans involved in the survey responded that they had been a victim of identity theft within the past year. That means about 10 million Americans dealt with some form of identity theft – from using existing credit cards to setting up new accounts or giving false identification when arrested for a crime.
It doesn’t stop there. The cost of clearing up the theft ranged from an average of $500 to $1200 per victim. It took them on average 30 hours to resolve the issue while also costing time and money for businesses and agencies who assist these victims.
With all the tools available to potential thieves along with our increasing reliance on paperless money transfers (credit cards, debit cards and online payments) we are incredibly susceptible to having this nightmare come true.
How can you reduce the risk and what do you do if it happens to you or your family?
IDENTITY THEFT NEWS
