Modernizing Authentication — What It Takes to Transform Secure Access
In a year that exposed the largest U.S. identity theft case, with more than 30,000 victims and an excess of $2.7 million in losses, it is evident that the problem is wide-reaching, persistent, and growing. Aberdeen predicts that identity theft cases will multiply in 2003, with total economic losses to consumers, business, merchants, credit issuers, and the financial industry totaling $24 billion.
Electronic payment solution provider, Star Systems, found that 5.5 percent of the respondents in a November 2002 survey of 2,000 U.S. adults had been victims of identity theft, and 19 percent personally knew someone whose identity was stolen.
Of the victims identified in the survey, 29 percent reported having credit cards in their name issued to another person; 23 percent had bank accounts in their name opened by another person; and 21 percent had loans in their name by another person.
The FTC found that most victims of identity theft were in the 30-39 year old age range, with New York City having the highest number of identity theft victims, followed by Chicago, Los Angeles, Houston, Miami, and San Francisco.
Data from the FTC indicates that victims' information is most often misused in frauds related to credit cards (42 percent), phone or utilities (20 percent), and banks (13 percent), as well as employment, loans, government benefits, and other criminal acts.
State and federal laws have been enacted to help protect Americans from the fallout of identity theft but the FTC urges consumers to guard information carefully, and to investigate any suspicious charges, withdrawals, or bills. Definite acts of identity theft should be reported to major credit bureaus, local police, creditors, and financial institutions.