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Trends in Identity Theft, From 2007 into 2008

By IBLS Editor

While certain new developments have characterized Identity Theft in 2007, others are believed to be on the cusp for 2008. The analysts at the Identity Theft Resource Center made five predictions for 2007, all of which turned out correct. The IFRC bases its prognostications upon victim experiences and data from law enforcement focusing on how criminals steal and employ personal identifying information and financial details. Linda Foley, ITRC Founder says, "Identity theft is like the never-ending story. It acts like an oil spill that spreads in yet another direction with the ocean currents and wind despite best efforts to contain it."

 

2007 RECAP:

 

The five ITRC predicted areas of increased crime trends developing in 2007 included: growth in check fraud, synthesizing and counterfeiting; expansion of ID Phishing; ID theft from children, family members and within domestic settings being acknowledged by law enforcement and businesses; an overall trend in indifference and insensitivity towards ID theft victims by law, corporate and Government entities;  and better communication between law enforcement bodies in multi-jurisdictional scenarios, helping to create regional task forces.

 

Check theft has become a bigger issue, as ID thieves are not only stealing existing checks, but also counterfeiting new checks based upon stolen account numbers while using a different name. Another angle is to put real information on the check top while making up account numbers that never existed.

 

Scam artists are also using the web to create fraud, by way of Web sites promoting online auctions, want ads, job hunting, dating, social networking, and other net venues. Classic scams continuing to thrive include: "lotteries, jury duty, IRS audits, Nigerian, account verification or phishing, money laundering and check cashing (you deposit checks for a company and then send them the money)."

 

One interesting area of ID fraud has been where family members steal the ID's from each other, especially from the children. Studies have shown that the most frequently targeted category is children between the ages of 0-5 years old. Other popular domestic ID theft scenarios include that done by former significant others.

 

ID theft has surfaced as an extremely important and central crime used to support other types of crimes, such as "meth and drugs, terrorism, and illegal trafficking of goods and persons." The media and entertainment industries have glamorized and minimized the crime of ID fraud, which contributes to overall ignorance as to the types, scope, or remedies for the fraud. In addition, the colossal efforts needed to deal with the aftermath in clearing one's name, and the emotional impact of having the most valuable aspect of a public life ? one's identity ? have been completely overlooked.

 

Another problem developing to a greater degree is the illusion that expensive or system computer safety measures, including firewalls, virus hunters, and anti-phishing gear lead to genuine security. The only real security is perpetual due diligence.

 

2008 Predictions:

 

The ID thieves will continue to get younger and younger, a trend which has been featured prominently in recent fraud stories, such as that of the two young Americans in their early 20's who relocated to Europe to establish a posh life based upon ID theft. This shows identity theft is becoming increasingly seen as a "lucrative career path."

 

Identity fraud will continue to build internationally, while scams are forced to become more sophisticated and harder to detect because scrutiny has been raised. Ever more skillfully designed viruses, Trojans and other fraud angles will be developed to capture information & defraud.

 

Poor policies and lack of security coordination will cause increasing data breaches. Added to this will be poor analysis and contradictory information and conclusions from studies as victim details, cause and effect, facts and the costs of ID theft are needlessly disputed. This will result in "confusion, misguided legislation and governmental actions."

 

Yet, on the positive side, ITRC takes the position that businesses will continue to create and impose better methods to "authenticate the identity of applicants including Internet and telephone applications."

 

Overall, there will be better recognition of ID theft as a crime by law enforcement, leading to increased reporting of crimes and help for victims, especially in using "state and federal victim recovery rights." Likewise, there will be more legislation on ID theft, such as restricting use of Social Security numbers. Further, states and non-profits will be better informed and better positioned to help in victim assistance at no charge.

 

 

 

Full post as published by IBLS Internet Law Blog on December 24, 2007 (boomark / email).