What Kind of Crime is Identity Theft?
Identity theft inflicts profound monetary and personal damage on Americans every year. The California Office of Privacy Protection estimates that 11.1 million Americans were identity theft victims in 2009, and that identity theft cost its victims $54 billion in 2008. Worse, victims are usually unaware that their identity has been stolen until they discover huge, inexplicable charges on their monthly financial statements and are barraged by calls from debt collectors.
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Classification and Definition
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The Identity Theft and Assumption Deterrence Act of 1998 prohibits obtaining and using another person's identification and personal data to commit or aid and abet a violation of federal or state laws. Identity theft and misuse are classified as fraud under Title 18, Part I, Chapter 47 of the U.S. Code, which codifies the act's provisions in Section 1028.
Penalties
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The Identity Theft Assumption and Deterrence Act sets a maximum sentence of 15 years' imprisonment, fines, and forfeiture of any personal property used to perpetrate identity theft. When identity theft is committed to facilitate violation of other fraud statutes, the penalties for those offenses are added to the sentence for identity theft. Individual states have their own identity theft laws, treating the offense as a felony or misdemeanor, generally depending on the value of the victim's loss.
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Techniques
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Personal identification data can be obtained through hacking the computers of facilities that store vast quantities of personal data, or through "phishing," i.e., sending emails purporting to be from a legitimate institution for the purpose of soliciting personal information. High technology is not required to commit identity theft, though. Identity thieves also search through garbage receptacles for documents with sensitive personal information, and "shoulder-surf," or make an over-the-shoulder observation of a victim entering PIN or credit card data into an ATM.
How Information Is Used
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Credit card fraud carried out by using your card or by applying for a new card in your name is very lucrative. Thieves can open a checking account in your name and write bad checks against it, as well as use your information to obtain personal loans. Your PIN numbers can be used to drain your accounts. Non-financial uses involve obtaining a driver's license or passport with your information, and giving out your personal information during an arrest so that when the identity thief fails to appear in court, the warrant is issued for you.
Impact on Victims
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Identity theft inflicts damage on its victims besides substantial financial loss. Victims have to spend considerable time repairing the harm done, closing bad accounts and rectifying the situation with their financial institutions. This process takes time, and identity theft victims can be denied jobs, rental properties or loans in the meantime because of their damaged credit rating. In rare cases, identity theft victims have had warrants issued against them and have been arrested for crimes committed by identity thieves.
Protect Yourself
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Always review your periodic financial statements for any irregularities, and shred them before throwing them away. Never carry your Social Security card in your wallet, and never provide personal information to unsolicited callers or e-mailers. When you set a new password, always choose a complex series of letters, numbers and special characters; never choose something easily guessed, such as your birth date, a family member's name or a series of numbers in sequence.
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References
- United States Department of Justice: Identity Theft and Identity Fraud
- Social Security Administration: Identity Theft and Your Social Security Number
- Federal Trade Commission: Fighting Back Against Identity Theft--About Identity Theft
- FTC: Fighting Back Against Identity Theft--Deter--Minimize Your Risk
- California Office of Privacy Protection: Identity Theft First Aid
Resources
- Photo Credit atm image by chrisharvey from Fotolia.com
