…The truth is, most known cases of fraud occur through traditional methods… Obviously, stolen wallets are the real epidemic…
The 2012 Identity Fraud Survey Report comes from identity theft victims’ responses to this survey question: “How was your information obtained?” Only 11 percent of the respondents said it was lost in an online transaction, and an equal number said it was stolen in a data breach. Some 43 percent blamed a lost or stolen wallet.
“Despite the hefty blame — largely perpetuated by the media — placed on the internet and cybercrime, online identity theft methods (phishing, hacking and malware) only accounted for 11 percent of fraud cases in 2012. The truth is, most known cases of fraud occur through traditional methods, when a criminal has direct, physical access to the victim’s information. Obviously, stolen wallets are the real epidemic.
Identity theft is defined as the process of using someone else’s personal information for your own personal gain. The has been studying identity theft closely since 2004. Each year, they release their findings. Their 2012 study reveals that:
Identity theft is on the rise, affecting almost 10 million victims in 2012 (a 22% increase from 2007)
Victims are spending less money out of pocket to correct the damage from ID theft. The mean cost per victim is $500, and most victims pay nothing due to zero-liability fraud protection programs offered by their financial institutions.
71% of fraud happens within a week of stealing a victim’s personal data.
Low-tech methods for stealing personal information are still the most popular for identity thieves. Stolen wallets and physical documents accounted for 43% of all identity theft, while online methods accounted for only 11%.
TYPES OF IDENTITY THEFT
Identity theft can happen to anyone, and it can come in all shapes and sizes. For example, your credit card number could be stolen and used to make online purchases; a thief could impersonate you to open up a loan in your name; a felon could commit a crime and pretend to be you when caught; or someone could use your personal information to apply for a job.
Here is a brief overview and description of each type of identity theft, based on complaint data:
Credit Card fraud (26%): Credit card fraud can occur when someone acquires your credit card number and uses it to make a purchase.
Utilities fraud (18%): Utilities are opened using the name of a child or someone who does not live at the residence. Parents desperate for water, gas, and electricity will use their childís clean credit report to be approved for utilities.
Bank fraud (17%): There are many forms of bank fraud, including check theft, changing the amount on a check, and ATM pass code theft.
Employment fraud (12%): Employment fraud occurs when someone without a valid Social Security number borrows someone elseís to obtain a job.
Loan fraud (5%): Loan fraud occurs when someone applies for a loan in your name. This can occur even if the Social Security number does not match the name exactly.
Government fraud (9%): This type of fraud includes tax, Social Security, and driver license fraud.