Identity Theft: The $60 Billion Heist

According to U.S. Department of Justice statistics, identity theft will soon replace drug trafficking as the Number One crime in the nation. In fact, every 60 seconds, more than 28 people become a victim of identity theft, costing companies an estimated $56.6 billion annually. Many consumers, in fact, aren’t even aware that they’ve been a victim of identity theft. For some, it’s a phone call from a collection agency trying to collect a delinquent debt. For others, it’s being denied credit or even being approved for credit that wasn’t applied for. But no matter the cause or how it is discovered, for the victim, identity theft typically leads to many lost hours of work and sleep dealing with creditors to clean up the mess and restore accounts.

While the Internet and cell phones have evolved and made it easier for many consumers to communicate, conduct business and handle personal finances online or over the airwaves, these same technologies provide even greater opportunities for identity theft. The traditional methods of identity theft are still practiced—stolen wallets, bank account numbers and health insurance information, dumpster diving and mail fraud—but are quickly being replaced by online threats such as e-mail scams and “phishing,” which is the process of attempting to acquire sensitive information such as usernames, passwords and credit card numbers by pretending to be a reputable entity to solicit and steal data. Also, as more consumers use their cell phones to store personal information, check e-mail and even pay bills, a lost or stolen cell phone can be a major headache instead of a minor inconvenience.