Identity Theft: The $60 Billion Heist

To learn more about this growing threat, J.D. Power’s Web Intelligence Division has researched the subject to discover that there is much to learn about consumer attitudes and behaviors pertaining to identity theft. According to the J.D. Power Web Intelligence Identity Theft Report, younger consumers—in particular people considered to be part of Generation Y—tend to be at a higher risk for identity theft but are less concerned with the threat than consumers in the Generation X and Baby Boomer demographic groups. Carter Truong, senior manager at J.D. Power Web Intelligence, explains: “Younger consumers tend to be more tech-savvy than older consumers, which gives them several benefits in protecting against identity theft. For example, their personal computers tend to be better protected and they’re more likely to recognize—and avoid—phishing scams than older generations. However, younger consumers also tend to have more of a presence online, leaving them open to more chances for identity theft.”


To help protect against identity theft, here are some things consumers can do:

• Face your Facebook. As social networking sites like LinkedIn, Facebook and MySpace increase in popularity, the Identity Theft Report identifies these sites as a hot spot for ID theft, as many online posters are unwilling to sacrifice self-expression to stay safe. For your own safety, ensure that social networking pages don’t contain more information than you feel comfortable with someone easily accessing, and utilize any available privacy settings provided by the site.

• Don’t dread it, shred it. Dumpster diving, while not nearly as sophisticated as online phishing scams, is still a commonly used tactic among identity thieves. To help protect against this, you should minimize putting sensitive information in volatile situations by buying and using a paper shredder. Also, don’t keep important documents, account or PIN numbers in your wallet or purse in case it gets lost or stolen.

• Be smart with your smartphone. As cell phones, MP3 players and portable gaming devices become increasingly multi-functional, consumers need to ensure that these devices are equipped with security functions to protect sensitive information. This is especially important with smartphones, which consumers frequently use to conduct mobile banking transactions and for browsing the Internet.

• Know your own finances. Consumers should check their credit report regularly. The three major credit reporting agencies—Equifax, Experian and TransUnion—when requested by consumers, are required by law to provide a free credit report once each year. And, rest assured that checking your own credit report will not negatively affect your credit, or FICO, score. Also, regularly check bank and credit card transactions for fraudulent charges.

• Don’t be afraid to ask for help. For those who don’t have the time or knowledge to thoroughly protect themselves from identity theft, companies such as LifeLock, Equifax and Debix can monitor a consumer’s financial activity for a minimal monthly fee.

For more information:

• Read the Press Release
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