Identity Theft

The term "identity theft" has been used widely with different meanings. In this booklet, we will define identity theft (also referred to as ID theft) as misuse of another individual's personal information for illicit financial or other gain. This definition is consistent with the approach used by the Federal Trade Commission's Identity Theft Survey Report.2

Why should identity theft concern me?

Identity theft can have a devastating impact on your life, affecting far more than just your pocketbook. If you become a victim of identity theft, you may face problems like these:

Money is fraudulently withdrawn from your bank accounts
Your credit score is ruined, at least for a while, which can increase the interest rate you are charged on loans or credit cards
You have difficulty opening bank accounts
You receive annoying calls from collections agencies for expenses you didn't incur
You could end up with a fraudulent criminal record

How prevalent is ID theft?

It has been called the fastest growing white collar crime in America. Statistics vary widely on the impact of identity theft on American consumers:

American adults became victims of identity theft, with a total cost of approximately $56 billion to industry and consumers combined.
The Federal Trade Commission estimates that by 2003, 27 million Americans had already been victimized by identity theft.

In addition to this direct impact, there are the secondhand effects of identity theft that hurt all of us. For example, we all pay a little more for goods and services because of the cost of fraud to merchants and banks.

Who is most likely to become a victim of identity theft?

Statistically, Hispanics and African Americans are more likely than Asian Americans or Caucasians to be victims of fraud. They also experience higher fraud losses.
Generation X (age 25 to 34) has a fraud rate of 5.38%, which is higher than other age groups.
Households that make $150,000 or more per year have higher rates of fraud, but lower average fraud amounts than households with income of under $15,000.

The person stealing your personal information is often someone you know.

Be careful about leaving your information out for all to see.

Criminal's Identity

Identity Theft

The best way to keep criminals from misusing your identity is to prevent them from stealing it in the first place.

By following a few simple steps, consumers can dramatically reduce the chances of falling victim to identity theft. Here is an easy way to remember what you need to do to help prevent identity theft: Secure your Mail, Identifying information, Payment tools, and your Computer. To summarize: Secure MIPC.

Legal Disclaimer: This web page is for informational purposes and should not be construed as legal advice. Following the suggestions in this web site does not guarantee the prevention, detection, or quick resolution of identity theft or other forms of identity fraud. Fair Isaac, FICO, Falcon and myFICO are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. BEACON is a registered trademark of Equifax Inc. Other product and company names herein may be trademarks of their respective owners.© 2010 Gatt Finanial Services, LLC. All rights reserved. This information may be freely copied and distributed without modification.