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One in Fourteen a Target or Victim of ID Theft

One in Fourteen a Target or Victim of ID Theft - The Beacon

01-2014

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By: Michael

One in Fourteen a Target or Victim of ID Theft

Your BBB receives calls from people wanting to get their credit reports to clear up fraudulent transactions. These fraudulent actions are often the result of identity theft.  According to an Associated Press story posted in December, 1 out of every 14 Americans age 16 or older were either targets or victims of identity theft in 2012.

According to a national household survey of 70,000 people issued by the Bureau of Justice Statistics, identity theft resulted in $24.7 billion in financial losses last year. The crime affected 16.6 million people and fell most heavily on households with annual incomes of $75,000 or more. In that income bracket, 10 percent of such households were victimized.

The survey counted both attempted and successful incidents of identity theft. Two-thirds of identity theft victims experienced financial losses, which averaged $1,769. For many victims, the size of the loss was eclipsed by concerns that someone had stolen their identity and that it might take weeks or months to repair the damage. Among victims who spent six months or more resolving financial and credit problems stemming from identity theft, 47 percent experienced severe emotional distress, compared with 4 percent who spent a day or less resolving problems.

Victims experienced a wide range of issues having to do with credit, banking, debt collectors and cutoffs in utility service. For example:

Victims whose Social Security number was misused were more likely to experience financial, legal or other difficulties. Ten percent of victims spent more than a month clearing up associated problems. A majority spent a day or less.

Victims whose personal information was used to open a new account or for other fraudulent purposes, spent an average of about 30 hours resolving problems.

Victims of existing credit card account misuse spent an average of three hours resolving problems.

The full extent of identity theft is unknown because often, a bank will reimburse the victim for any losses, and the crime is never reported to the police. One in ten identity theft victims reported the incident to police, while 9 in 10 victims contacted a credit card company or bank to report misuse. Less than 10 percent of victims bought identity theft protection or used an identity theft security program on their computer after being victimized, but 85 percent took one or more preventative actions such as changing passwords on financial accounts or examining bank or credit statements.

Theft involving existing credit cards and bank accounts made up for the vast majority of the 16.6 million victims. Some 7.7 million victims reported the fraudulent use of a credit card, and 7.5 million reported the fraudulent use of a bank account such as a debit card, checking account or savings.

For more information you can trust, visit bbb.org/Evansville.

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Michael

Michael is our Business Information Specialist and will be writing at least one article per week for the consumer education blog. He works with accredited businesses to ensure we maintain current contact information and licensing. He is usually first to answer the phone; so odds are good you will be speaking with him when calling our office.