$21 Billion Total financial loss attributed to identity theft in 2013.*
When it comes to identity theft, the first step in protecting yourself is learning what thieves are doing to steal your personal information.
Our arsenal of knowledge explores the evolution of techniques from old-school to next-generation. Get the facts below:
WHAT IS IDENTITY THEFT?
Identity theft, or fraud, occurs when an unlawful person steals another person’s information and uses it to benefit themselves. This information can range from Social Security numbers to driver’s license numbers and bank account numbers. This illegal activity can be done in a variety of ways, but more recently the Internet has become a hub for this type of fraudulent behavior. According to the American Bankers Association, the total number of Americans who have experienced identity theft has surpassed 27 million, with the incidence rate increasing each year. Read below to see full statistics.
TYPES OF IDENTITY THEFT
There are a number of different types of identity theft. Identity theft may be used to facilitate crimes including illegal immigration, terrorism, and espionage. Identity theft may also be a means of blackmail. There are also cases of identity cloning to attack payment systems, including online credit card processing and medical insurance (Wikipedia). Listed below are some different types of identity theft and their explanations.
- Financial Identity Theft
The use of someone else’s financial information to steal his or her identity. With this information, the criminal can perpetrate the victim and steal money, set up a means to launder money, and ruin credit. - Criminal Identity Theft
Occurs when a criminal embezzles personal information or uses a fake ID to steal someone else’s identity. A warrant is given out for the arrest of the victim, and the criminal is liberated from facing the consequences. - Identity Cloning
Occurs when a person takes someone else’s identity and assumes the victim’s identity in his or her daily life. This could be used to hide from the authorities. For example, an illegal alien could be hiding under a citizen’s name.
METHODS OF IDENTITY THEFT
Identity theft can happen through a number of different methods. These methods are usually carried out by physical contact with paperwork or through electronic means.
- Account Hijacking
The fastest growing form of identity theft, some 2 million people were victimized last year alone. Account hijacking occurs when a criminal obtains your personal banking information and uses it to take over your bank accounts. - Dumpster Diving
An unlawful person searches through garbage for personal information. - Hacking
Taking information from computers through viruses and Trojan horses - Pickpocket
Physically stealing payment information or identification. - Shoulder Surfing
Eavesdropping or looking over someone’s shoulder for personal information - Phishing
Impersonating a reputable institution to gain trust, and then asking for information. For example, someone sends out a phishing email imitating a credit card company. This e-mail usually contains a link that might ask the victim to click and update his or her information. This link will take the victim to a look-a-like website of a company. Once that personal information has been entered, the thief now has access to the information provided by the victim.The Gartner Research Center found that losses from phishing attacks in 2004 was $137 million, in 2006 it was $2.8 billion. They also found that the number of U.S. adults who received a phishing email doubled from 57 million in 2004 to 109 million in 2006.
LifeLock Identity Theft Protection
LifeLock® identity theft protection helps proactively safeguard your credit, your finances and your good name with vigilant services that alert you of potential threats before the damage is done. If identity thieves steal your personal information, they could take out a mortgage, commit tax fraud, open new credit accounts and a whole lot more.†
Your LifeLock Membership Includes:
- Identity Threat Detection and Alerts. Stolen identity information is used to apply for credit cards, wireless services, retail credit, utilities, mortgages or auto and payday loans. LifeLock actively monitors applications within an extensive network for attempts to use your personal information. Whenever suspicious activity is detected, you will receive an alert via email or phone.†
- Lost Wallet Protection. A lost or stolen wallet can leave you stranded. If your wallet goes missing, just call—anytime, anywhere—and LifeLock will help cancel or replace the contents, helping you stop fraudulent charges so you can get back on your way. Coverage includes: credit and debit cards, driver’s licenses, Social Security cards, insurance cards, checkbooks and travelers checks (pictures, cash and cash equivalents excluded).
- Address Change Verification. Identity thieves can redirect your mail, containing financial information, by impersonating you and providing a fraudulent new address. LifeLock monitors these requests and notifies you any time a change of address is requested in your name.
- Black Market Website Surveillance. Identity thieves illegally buy, sell and trade personal information on black market Internet sites around the world. LifeLock patrols over 10,000 criminal websites and notifies you if your private data is found.
- Reduced Pre-Approved Credit Card Offers. LifeLock requests that your name be removed from many pre-approved credit card mailing lists, an important information source for identity thieves.
- Award-Winning Member Service 24/7/365
- LifeLock is available to help you 24 hours a day, 7 days a week, 365 days a year. If at any time you have questions, sign in to your secure member portal
- $1 Million Total Service Guarantee. As a LifeLock member, if you become a victim of identity theft, LifeLock will spend up to $1 million to hire experts to help your recovery.‡
- Comprehensive Protection, Unlimited Peace of Mind. LifeLock is the most comprehensive identity theft protection you can get. Enrollment takes just minutes and our 24/7 identity theft protection starts immediately.
For more information on how you can protect your company, your clients, your employees and yourself contact Thomas Camarda at 732-744-4719 or use the form below.
| Identity Theft / Fraud Statistics | Data |
| Average number of U.S. identity fraud victims annually | 11,571,900 |
| Percent of U.S. households that reported some type of identity fraud | 7 % |
| Average financial loss per identity theft incident | $4,930 |
| Total financial loss attributed to identity theft in 2013 | $21 billion |
| Total financial loss attributed to identity theft in 2010 | $13.2 billion |
| Percent of Reported Identity Thefts by Type of Fraud | Percent Reported |
| Misuse of Existing Credit Card | 64.1 % |
| Misuse of Other Existing Bank Account | 35 % |
| Misuse of Personal Information | 14.2 % |
| *Statistic Verification |
| Source: U.S. Department of Justice, Javelin Strategy & Research |
| Research Date: 6.18.2013 |
| Identity theft is defined as the unauthorized use or attempted misuse of an existing credit card or other existing account, the misuse of personal information to open a new account or for another fraudulent purpose, or a combination of these types of misuse. |
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