Identity Theft

The problem of Identity Theft continues to rise as consumers and businesses struggle to stay ahead of identity fraud criminals. According to the Federal Trade Commission, Identity Fraud affected an estimated 3.3 million Americans in 2002, costing consumers $3.8 billion and businesses $32.9 billion dollars.

For the most part, Identity Theft involves an identity fraud criminal obtaining another person’s personal information, such as bank account numbers, Social Security numbers, etc., then utilizing that information to make improper charges, establish credit, or take over financial accounts. One of the most popular methods of Identity Theft is to go through a person’s trash to obtain copies of bank or credit card statements, checks, address and telephone number information, etc. Because of this, it is important for the consumer to shred or properly destroy any paperwork containing personal information, such as letters, bank statements, credit card statements, etc. It is also important for consumers to closely monitor the spending for their bank and credit card accounts to ensure all charges are valid.

Businesses are beginning to seriously address the problem with new technologies, one prominent being Identity Theft solutions from Early Warning services, all of which are linked to their extensive databases created with shared information from multiple industries including financial institutions. For more information on Identity Theft, review the Federal Trade Commissions site http://www.consumer.gov/idtheft/.

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