Report Details Impact of Identity Theft in California
California Ranks #2 in Identity Theft Complaints Nationwide,
According to FTC
Credit Card and Employment Fraud Top Forms of Identity Theft in State
SCOTTSDALE, Ariz. (Business Wire EON/PRWEB ) August 12, 2008 --
A comprehensive study exploring the identity theft crisis in California
was released today by Identity Theft 911®,
a leading provider of identity management solutions. In addition to
detailing the increasing diversity of identity-related fraud, the white
paper highlights steps that state officials and businesses are taking to
combat this growing problem.
“Each year, more and more consumers fall
victim to various forms of this insidious crime. This report puts a
spotlight on California, highlighting several issues that are likely
responsible for driving up these numbers in the state,”
said Judd Rousseau, Chief Fraud Officer of Identity Theft 911. “However,
California legislators and government officials, law enforcement
officers and non-profit groups are taking aggressive steps to fight
identity theft as highlighted in this report.”
“The fact is that identity theft is a growing
problem,” said Linda Foley, Founder of
Identity Theft Resource Center® (ITRC). “There
are a lot of people being hurt by this crime (in terms of) businesses
and as individuals.”
According to study's analysis of the Federal Trade Commission's (FTC)
complaints, nearly 1.5 million Californians were victims of identity
theft in 2007, which is equivalent to 15 Rose Bowl stadiums of
spectators having their identities stolen in one year. While stealing
phone and utility services, and taking money through checking account
takeovers or illegal money transfers, account for a vast majority of
identity fraud-related activity, the report finds that certain groups in
California are responsible for the continued increase in fraud cases in
the state.
Undocumented Workers, Car Thieves and Gang Activity Spike Identity
Theft Activity
California ranks highly due to its regional characteristics. In the
state's central valley’s farmlands,
undocumented workers account for the increased rates of
employment-related identity theft as they rely on stolen or fraudulent
social security numbers to secure employment. California is breed to a
new generation of car thieves who’ve traded
hot-wiring tools for fake checkbooks and stolen identities—a
problem that state highway patrol officers responsible for investigating
auto-related fraud are seeing increased activity.
Gang members and organized crime, meanwhile, have discovered identity
theft as a means of generating off-the-books income, as have addicts
hooked on methamphetamines, a habit for which identity theft is nicely
suited. In addition, California metro areas are rich for data mining.
California Treasurer Bill Lockyer, who served as the state’s
Attorney General from 1998 through 2006, says Californians ought to take
the identity theft problem “very seriously.”
“It’s very costly
on people’s time and wallet,”
he adds.
State of California Proactive In Protecting Consumers
While identity theft continues to plague the state, California’s
heightened response to this crime is cause for optimism, according to
the report. Collaborative efforts between law enforcement agencies,
state and district attorneys, nonprofit organizations and the California
legislature has made California a model state for identity theft
deterrence.
For example, California continues to pass pro-consumer legislation
intended to curb the growth of identity theft. Such initiatives include
landmark credit and data breach notification laws; legislation
prohibiting businesses, academic and government institutions from
publicly displaying Social Security numbers; and regulations that
prohibit financial institutions from sharing or selling personally
identifiable nonpublic information without obtaining consumer consent.
“Identity theft will continue to be a problem
requiring individuals, businesses and government agencies to be
constantly vigilant,” said Debra Bowen,
California Secretary of State. “We all need
to do a better job of protecting sensitive personal information and
purging data that we don’t need, especially
information in ‘electronic filing cabinets.’”
Other findings from the report include:
-
Identity theft cost Californians an estimated $749 million in out of
pocket expenses in 2007.
-
California residents spent an estimated minimum six million hours –
or 250,000 days – resolving identity theft
issues.
-
Of the 50 metropolitan areas ranked highest by the FTC in terms of
consumer identity theft complaints, 16 were in California, which
contributed the most high-ranking cities in any state.
“Taking six million hours to resolve identity
theft-related issues is a conservative and underestimated number,”
said Jay Foley, Executive Director of ITRC. “The
burden of undoing the damage and restoring the victim’s
good name takes a toll on an individual’s
life causing stress and anxiety.”
This white paper is being released as part of a series of ongoing
reports from Identity Theft 911 to educate and inform consumers on one
of the fastest growing crimes today. For a copy of this and other state
white papers, please visit www.identitytheft911.org.
About Identity Theft 911
Identity Theft 911®
is an industry leader in identity management, providing innovative,
enterprise-level fraud solutions and consumer education to
small-to-midsize as well as Fortune 500 companies; including many of
America's largest insurance companies, corporate benefit providers and a
wide spectrum of financial institutions, colleges and universities. More
than 12 million households are enrolled in Identity Theft 911's
comprehensive identity management programs. For more information, call
480-355-8500 or visit www.identitytheft911.org.
See the original story at: http://eon.businesswire.com/releases/identity/theft/prweb1204054.htm
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