Identity Theft and Fraud Information

• Fraud is a broad area of crime encompassing everything from forging a signature on a check to filing a false insurance claim. Identity theft is a specific form of fraud that occurs when an imposter obtains key pieces of personal information about a consumer—such as a Social Security or a driver’s license number—and uses that information to impersonate the consumer by obtaining credit, merchandise or services in the name of the victim. (Source: "Identifying Your Role," ACA International Compliance Dept., Collector magazine, November 2006.)
• The terms "identity fraud" and "identity theft" are often used interchangeably, but there are important distinctions between the two. Identity fraud occurs when someone takes illegally-obtained personal information to use for their own financial gain.  For example, if someone steals your credit card and makes purchases, you have been the victim of identity fraud. Conversely, identity theft occurs when personal information is accessed by someone else without permission.  For example, if somone found your Social Security number on a document in your trash and applied for a new credit card in your name and used it, you have been the victim of identity theft. (Sources: "Identifying Your Role," ACA International Compliance Dept., Collector magazine, November 2006; "2009 Identity Fraud Survey Report, Consumer Version," Javelin Strategy & Research, February 2009.)
• A 2011 Javelin Strategy and Research survey report found 8.1 million Americans learned they were victims of identity theft in 2010, down from 11.1 million victims in 2009. Total annual fraud decreased from $56 billion to $37 billion. (Source: "2011 Identity Fraud Survey Report, Consumer Version," Javelin Strategy & Research, February 2011.)
• While fraud incidents decreased, the mean consumer out-of-pocket cost due to identity fraud increased 63 percent, from $387 in 2009 to $631 in 2010, including new account and debt card fraud. (Source: "2011 Identity Fraud Survey Report, Consumer Version," Javelin Strategy & Research, February 2011.)
• New account fraud, in which accounts have been opened without the victim’s knowledge, was responsible for the greatest fraud amount ($17 billion) in 2009. (Source: "2011 Identity Fraud Survey Report, Consumer Version," Javelin Strategy & Research, February 2011.)
• The Federal Trade Commission reported receiving more than 250,000 identity theft complaints from consumers. (Source: "FTC Releases List of Top Consumer Complains in 2010; Identity Theft Tops the List Again," March 2011.)
• Fraud perpetrated by people known to the victim, such as a relative or roommate, grew 7 percent in 2010, with consumers between the ages of 25-34 most likely to be victims of this type of fraud. (Source: "2011 Identity Fraud Survey Report, Consumer Version," Javelin Strategy & Research, February 2011.)
• The average consumer out-of-pocket cost due to identity fraud increased almost 63 percent from $387 in 2009 to $631 per incident in 2010. Consumer cost is the out-of-pocket cost suffered by victims in order to resolve the fraud. Because of zero-liability fraud protection offered by many banks and credit card companies, most victims will pay nothing out-of-pocket. (Source: http://www.fa-mag.com/fa-news/6819-identity-theft-fraud-falls-34-victims-pay-more.html.)
• Nearly 40 percent of the identity theft victims in the 2006 Identity Theft Survey Report discovered the misuse of their information within one week of the misuse.  However, the discovery period differed depending upon the type of fraud experienced.  (Source: "Federal trade Commission—2006 Identity Theft Survey Report," Synovate, November 2007.)
• The FTC has categorized identity theft into three distinct categories: new accounts and other fraud; misuse of existing non-credit card account or account number; and misuse of existing credit card or credit card number.  (Source: "Federal Trade Commission—2006 Identity Theft Survey Report," Synovate, November 2007.)
• When identity theft occurred on existing credit card accounts, victims discoveerd the misuse when they received a billing statement with fraudulent charges (25 percent), by monitoring their accounts (24 percent), and when the company notified the consumer of unusual account activity (23 percent). (Source: "Federal Trade Commission—2006 Identity Theft Survey," Synovate, November 2007.)
• When identity theft occurred in existing non-credit card accounts, victims discovered the misuse by monitoring their accounts (41 percent). (Source: "Federal Trade Commission—2006 Identity Theft Survey," Synovate, November 2007.)
• When the identity thief opened new accounts and for other fraud victims, the most common method of discovery was contact from a debt collector (23 percent). (Source: "Federal Trade Commission—2006 Identity Theft Survey," Synovate, November 2007.)
  
  

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