Defining Identity Theft

by on April 1, 2011

Editor's Note - We recommend LifeLock as the number 1 Identity theft protection service. You can read comprehensive LifeLock review here OR compare all identity protection services here.

Defining Identity Theft

Identity theft is a crime involving someone impersonating a victim for the purpose of financial gain or other personal gain.The victim could be an individual or a business, and the perpetrator could be one person or several individuals acting as part of a theft or fraud ring. Often, the theft of a personal or business identity is used to commit other crimes as well, such as credit card fraud, submitting loan applications in another person’s name, and so on.

Impersonating someone for personal gain has been a problem for centuries, but it has become more prevalent as easily accessible information about people has become more prevalent.Whereas common targets for identity theft used to be the very rich or famous, today ordinary citizens are much more likely to be victims. Here are a few statistics that have been accumulated in recent years by various U.S. government agencies:

- Identity theft is a crime that happens to ordinary people, just like you and me; the average age of victims is 41.

- The U.S. Secret Service estimated the cost of identity theft at $745 million in 1997. Since that time, identity theft has become more prevalent, with total costs estimated in the billions to victims, financial institutions, and taxpayers.

- The number of new cases of identity theft is on the rise.This relatively new trend is the result of the internet’s influence on easy information access.

- Identity theft affects people with good credit or high income more often than it affects those with a poor credit history or low income.

- Identity theft was reported to the Federal Trade Commission (FTC) in 69,370 complaints from November 1999 through June 2001

Identity theft was reported to the FTC at a rate of about 3,000 calls per week, up from 2,000 the year before, according to FTC Chairman Robert Muris in April 2002 (www.technews.com).

Identity theft costs victims an average of 175+ hours and $1,000 in out of pocket expenses to clear their names, according to The Identity Theft Resource Cente.

For the sake of clarity, here are a few examples of actions that constitute identity theft:

Having your wallet stolen is not identity theft. However, if your wallet is stolen and, subsequently, the thief uses your driver’s license and credit card to make a purchase, the crime becomes identity theft.

Losing your ATM card does not constitute identity theft. However, identity theft occurs if you lose your ATM card and someone finds it and then obtains your PIN (personal identification number) to withdraw money from your bank account or uses your ATM card in some other way for financial gain.

Having your cell phone stolen is not identity theft unless the thief makes calls using your phone or uses the data stored on your phone in some way in an effort to impersonate you.

Understanding identity theft

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  • Risk Factor Test – What is your identity theft risk?

    Take this test to determine your risk factors. If more than half of the following statements are true, you are at high risk for identity theft. You receive at least one loan solicitation or pre-approved credit offer each week. ¡ You usually toss...

  • Striving for Theft Prevention – Best identity theft prevention tips

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  • Personal identification – Your identity ?

    Personal identification - Your identity ? The use of a seal, card, or other identification while making a purchase or signing a contract is a custom almost as old as history. As merchants and their customers have begun using the Internet in recent y...

  • Defining Identity Theft

    Defining Identity Theft Identity theft is a crime involving someone impersonating a victim for the purpose of financial gain or other personal gain.The victim could be an individual or a business, and the perpetrator could be one person or several i...

  • Business Identity Theft

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  • Protecting Your Social Security Number – How to prevent ssn theft

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  • What to do when your identity is stolen ? Reporting identity theft

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  • Obtaining credit card report – know what others may know about your financials

    Obtaining credit card report An exceptionally superb hacker will have a way to look at your full credit report possibly by means of social engineering (for instance impersonating your landlord) or breaking into the database.The credit bureaus try ev...

  • Taking Benefit of Marketing Opt-Out Programs

    Taking Benefit of Marketing Opt-Out Programs Some other action you possibly can choose in order to prevent your personal information private is to pursue every single opportunity to inform direct entrepreneurs, financial institutions, along with org...

  • Do you really understand identity theft

    These Commonly Asked Questions are designed to both measure an individual's understanding of the concepts introduced in this section and to advise you regarding real-life execution of those concepts. Q:I received an e-mail from my Internet Service P...

  • Closing Bank and Loan Accounts

    Closing Bank and Loan Accounts If money out of your checking, savings, or another bank account was stolen, you will not be capable of limit whatever is lost instantly, unless of course possibly you bought separate insurance that covers you in the ev...

  • Notifying the Federal Trade Commission (FTC)

    Notifying the Federal Trade Commission (FTC) The final step you have to take would be to call the Id Theft Toll-Free Hotline at 1-877-IDTHEFT (1-877-438-4338).The FTC may be the central point of contact within the Federal government for confirming o...

  • Coping with Telephone Fraud

    Coping with Telephone Fraud One of the most lucrative phone ripoffs occurring nowadays is connected with telephone 900 numbers.You may get a message in your pager or mobile phone showing a telephone number you're designed to call back.The telephone ...

  • How You Can Protect Against Identity Theft

    ibfog --> video Never respond to phishing attacks. Financial institutions rarely send emails asking that you log in to your account, so never click an email asking you to do so. Instead, call the institution or log in to your account on your own,...

Editor's Note - We recommend LifeLock as the number 1 Identity theft protection service. You can read comprehensive LifeLock review here OR compare all identity protection services here.

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