Identity Theft – It’s Not What You Think

By this time in 2007 it should be clear to just about everyone that identity theft is a real and growing problem throughout the world, but especially here in the United States where there is so much affluence (and of course available credit). The Federal Trade Commission reports that for the 5th year in a row identity theft topped the list of consumer complaints. In this article we will explore what identity theft is, how it is most commonly perpetrated, and how big of a threat it really is to the average consumer.

Credit Card Fraud versus Identity Theft

When someone illegally obtains your credit card information and uses it then that is credit card fraud. It is not identity theft in the purest sense but when the government estimates the number of identity theft victims and the financial impact of identity theft it generally includes this number. The term most commonly used now is Identity Fraud which broadens the scope to include credit card fraud. In 2006 the total estimated cost of identity fraud was $56.6 billion, up from $54.4 billion in 2005. Credit card fraud accounts for approximately 26% of identity theft. The balance of identity theft is comprised mostly...