• What Is Identity Theft?
• How Does Identity Theft Happen?
• How Do You Know If Your Identity Has Been Stolen?
• ID Theft Statistics
• What Are The Federal Laws Regarding Identity Theft?
• What Are Pennsylvania Laws Regarding Identity Theft?

WHAT IS IDENTITY THEFT?

Identity theft is a serious crime that occurs when someone else uses your personal information such as your name, Social Security Number, credit card information, driver’s license number or other identifying information without your permission.

Most of the time, this stolen information is used to obtain credit, merchandise or services in the name of the victim.  But, in addition to running up debt, an imposter might provide false identification to police, creating a criminal record or leaving outstanding arrest warrants for the person whose identity has been stolen.

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HOW DOES IDENTITY THEFT HAPPEN?

The only thing an identity thief needs is your Social Security Number, your birth date or, sometimes, identifying information as basic as your address, driver’s license number and phone number. 

Some of the places identity thieves get this information include:

• Purses/wallets
• Personal information kept in your car (especially your glove box)
• Receipts tossed in the trash
• Overhearing conversations you have in public
• Information stolen from your mailbox
• Diverting your mail to another location by filling out a “change of address form”
• Looking over your shoulder when you use your credit cards or the ATM 

Some thieves use technology to get your information:

• “Phishing” or “pfarming” for information via e-mail
• “Pretexting” phone calls where the caller needs you to give information over the phone
• Computer hacking

But the most surprising might be when a dishonest employee snatches your personal information where you least expect it:

• Physician offices
• Attorney or accountant offices
• Health insurance carriers
• Stores where you shop or apply for credit cards
• Restaurants

And once an identity theft has your information, they are then able to sell it to other crooks.

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HOW DO YOU KNOW IF YOUR IDENTITY HAS BEEN STOLEN?

Even if you do everything possible to prevent criminals from stealing your identity, it can still happen to you.  Here are some common warning signs your identity has been stolen:

• Your credit report shows unknown accounts
• You are denied credit, or offered less favorable credit terms, for no apparent reason
• You receive an actual credit card you did not apply for
• You fail to receive bills or other mail (A missing bill could mean an identity thief has taken over your account and changed your billing address to cover his tracks or obtain additional personal information.

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IDENTITY THEFT STATISTICS

Identity Theft At A Glance

From 2006 Identity Fraud Consumer Report:

• In the last 12 months, nearly 8.9 million Americans (4 percent of the population) became victims of identity fraud.
• The good news is, this is an 11.9 decrease from 2003.
• The bad news is, the average fraud amount per victim has increased substantially (21.6 percent) to $6,383 per victim.
• Because many financial institutions do not hold victims responsible for identity theft, the average out-of-pocket expense to consumers is $422.
• The average time to resolve the situation is 40 hours, up from 33 hours in 2003.
• Identity theft and fraud cost $56.6 billion annually; this is essentially the same amount as in 2003.
• The faster fraud is detected, the lower the fraud amount and consumer costs.  47 percent of cases are detected by the victim and this self-detection results in 36 percent lower consumer costs ($347 on average, compared to $422 on average.)

63 percent of identity theft cases were initiated by breaches of information within the victim's control:

• 30 percent lost or stolen wallets, checkbooks, credit/debit cards
• 15 percent by someone you know (friend, family, in-home employee, neighbor)
• 9 percent stolen mail
• 9 percent home computers (hacking, viruses, phishing)

Businesses accounted for 30 percent of the identity theft:

• 15 percent were caused by employee wrongdoing
• 7 percent were fraudulent transactions
• 6 percent were data breaches

Fraud perpetrated by friends/family/in-home employees/neighbors costs more to resolve.

• Fraud perpetrated by an employee at a business costs a consumer an average of $8.
• Fraud perpetrated by someone you know costs a consumer an average of $1,209.

Source:  2006 Identity Fraud Survey Consumer Report, Javelin Strategy and Research.

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WHAT ARE THE FEDERAL LAWS REGARDING IDENTITY THEFT

The Fair Credit Reporting Act
Fair Credit Reporting Act
The Fair Credit Reporting Act establishes procedures for correcting mistakes on your credit record and requires that your record only be provided for legitimate business needs.

Fair and Accurate Credit Transactions Act
Fair and Accurate Credit Transactions Act
The Fair and Accurate Credit Transactions Act is actually an amendment to the Fair Credit Reporting Act and provides several new measures to protect consumers from identity theft.

The Fair Credit Billing Act
Fair Credit Billing Act
The Act establishes procedures for resolving billing errors on your credit card bills and statements with regard to your credit card accounts. The Act also limits your liability for unauthorized or fraudulent credit card charges.