Identity Theft as a Crime of Choice
Identity Theft is Less Risky, Incredibly Easy, and Highly Profitable
As little as ten years ago, this article may have been viewed as an in-depth review of a relatively obscure topic. In today's world, however, it is now critical information that is virtually required knowledge for consumers, professionals, and business owners alike. Identity Theft has exploded in recent years into a type of crime epidemic.
Did you know? According to the U.S. Department of Justice, Identity Theft has officially surpassed drug trafficking as the #1 crime in America.
Our relationship-less, easy access, technology-driven environment, combined with "slap-on-the-wrist" consequences for white-collar criminals, has spawned and encouraged the incredible proliferation of Identity Theft as a crime of choice for many criminals, opportunists, gangs, and organized crime syndicates. Simply put, a thief who robs you of your wallet or purse at gunpoint and is caught is likely to be sentenced to 5 to 10 years in prison for armed robbery. In comparison, an identity thief who steals your identity, opens 20 accounts in your name, and accrues tens of thousands of dollars in fraudulent debt will likely receive probation. Why is this? First, white collar crime is not considered a violent offense. No weapons were used in its commission, and no one's life was threatened. Prison over-population mandates that what little space is available be reserved for violent offenders.
Next, the crime is incredibly simple to commit with minimal risk, and it is very lucrative. Identity thieves do not need to break into your home or vehicle. In fact, they do not even need to reside in the same state or country as you. Many of the identity thieves who have been caught have been tech-savvy teenagers using their home computers, and some of the most prolific thieves have ties to organized crime groups located outside the United States, yet they easily have a global reach.
Thieves and con artists have found the crime to be extremely easy and highly lucrative, thus resulting in the formation of sophisticated "identity theft rings". An identity thief, or a ring of such thieves, can easily steal the information of hundreds, thousands, or even millions of victims at once - without a gun and with minimal risk. One can scarcely open a newspaper without finding a new story about such a ring, often cleverly disguised as a janitorial company or some other routine service to which most consumers do not give a second glance. Many crime rings such as these recruit low paid employees to steal sensitive customer information from their place of work. At five to ten dollars per name and Social Security number, this can quickly add up to a very lucrative source of income, particularly if the employee has access to a large database. A single CD-ROM or small USB drive can hold a large volume of information and is easy to conceal.
Furthermore, because of the very nature of the crime, identity thieves are difficult to catch, which means that there is a far greater likelihood they will successfully get away with Identity Theft as opposed to other types of crimes. An Identity Theft case often crosses multiple jurisdictional boundaries, with differing laws and penalties, and differing jurisdictional policies and procedures, making inter-agency cooperation difficult. For example, an identity thief may steal a consumer's information in one state, commit crimes using that information over the Internet and in two additional states, and relocate to a fourth state. This leaves law enforcement with no crime actually committed in the victim's home state, and no crime committed in the state in which the thief currently resides. In the case of fraud committed via the Internet, where did the crimes actually occur and how are they to be investigated? With multiple jurisdictions involved, which would be the lead jurisdiction in the investigation? Issues such as these make it extremely difficult for law enforcement to investigate and prosecute the crimes, or assist the individual victims. Because the crimes also often involve technology, there are many opportunities for the thief to hide and conceal his or her activities, and many law enforcement agencies lack adequate training and resources to adequately investigate cyber-crimes. And of course, at any time the thief can simply stop using the victim's information, or sell it to another thief, thus further confounding the investigation.
Identity Theft is Also a Means to an End
Identity Theft and fraud by itself is a profitable crime, but it is also frequently a means to an end. Identity Theft and fraud cases are regularly linked to other crimes, most notably the illegal drug trade. Individual criminals, street gangs, drug addicts, and organized crime syndicates use these crimes as a way to obtain money to purchase their drugs or fund their operations. They may use the victim's information themselves, or acquire and sell the victim's information to other criminals as a source of revenue. Even after the initial crime is discovered and any resultant fraudulent activity is eventually resolved, victims whose information has been stolen are always in danger of being re-victimized again in the future, as their information may be sold or traded to other criminals over and over.
There are numerous Internet websites operated by criminals, as sophisticated as most legitimate Internet merchant sites, that sell the stolen credit card, financial, and other personal information of millions of consumers on a daily basis. Countless organizations, large and small, have suffered data breaches in the last few years. The standard, inadequate response to the affected consumers has become "Have a breach, send them a letter, and offer them credit monitoring." Consumers who are notified of a serious data breach at a major financial institution or large company are often offered a limited period of free credit monitoring, and a false sense of security. At the end of the free monitoring period they must pay to keep the service, and the financial institution or company that suffered the breach typically profits by splitting a portion of the subscription revenues with the company providing the service. Through media reports and public announcements, the thieves who have stolen the information know what, if any, services are being offered to the affected consumers, and for how long. Whether it is three months, six months, or a year, thieves can simply sit upon the stolen information until the alarm bells stop ringing and the free services expire. With no apparent fraudulent activity having occurred during this time, consumers let down their guard and do not extend the service - and this is when the thieves begin to strike.
A victimized consumer must remain eternally vigilant, closely monitoring their accounts, public records, and personal information on a regular basis for further signs of fraudulent activity. The majority of consumers do not realize that credit monitoring services were developed and offered by the credit bureaus long before Identity Theft became a crime epidemic, and were developed for the purpose of assisting consumers in managing their credit rating based upon the way that the credit reporting system operates (not the way that identity thieves operate). The services were not developed for the purpose of preventing Identity Theft, though that is precisely how they are aggressively marketed. Credit monitoring services have significant limitations which are not disclosed to consumers, and financial account fraud - the type that may show in a credit report - is only one potential outcome of an Identity Theft incident.
©Copyright 2008 by Michael Barnett. All rights reserved. Unauthorized use, copying, or distribution without permission is prohibited.
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