By CNET News.com staff, 27 January 2005 16:40
NEWS
Though identity theft using the internet seems to get all the attention, most of the financial loss linked to fraud is still from offline crime, a new study shows.
Losses related to an average case of internet-initiated fraud were $551, compared to $4,543 lost from fraud tracked back to paper statements, according to the 2005 Identity Fraud Survey conducted by the Better Business Bureau and Javelin Strategy & Research.
The survey, which follows an earlier study carried out by the Federal Trade Commission in 2003, indicated that internet-related crimes are actually less severe, less costly and not as widespread as previously thought.
The amount of money lost to identity fraud in 2004 was $52.6bn - about the same as in 2003. And the number of victims dropped to 9.3 million in 2004 from 10.1 million the year before.
Ken Hunter, CEO of the Council of Better Business Bureaux, said in a statement: "This new research contradicts some common assumptions about identity-theft fraud and points to new paths of prevention. There are several steps consumers can take to improve their identity safety and protect themselves against this type of fraud."
The survey said computer crimes accounted for only 11.6 per cent of identity fraud in 2004 in which the cause was known. Half of those crimes stemmed from spyware, software that surreptitiously tracks users online or causes ads to pop up when the consumer is online.
James Van Dyke, Javelin's founder, said in a statement: "Our numbers show that fears about online identity fraud may be out of proportion to the relative risk, causing consumers to ignore the most glaring issues. Indeed, most instances of identity fraud occur through traditional channels and are paper-based, not internet-based."
Users can protect their financial data by using updated software that protects against spyware and viruses and by and not responding to suspicious email ploys that request personal data. By managing their financial accounts through a password-authenticated website, the report added, "consumers can reduce access to personal information on paper bills and statements that may be used to commit identity theft and fraud".
Also revealing was the finding that half of those who committed the online crimes are closely related to the victim as a friend, family member or neighbour.
Comments
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1. anonymous
Electoral rolls can provide info for a would-be fraudster, in particular if you advertise (via a signboard) that you are moving house, giving an apparent excuse for change of details.
2. Richard
I blaim the FSA!
Why are our paper statements and letters now so valuable to criminals?
Before the advent of anti money laundering legislation etc., there was little risk.
Thank you FSA!
3. Barry Stamp
We help UK ID theft victims and endorse this finding. The most clever of recent cases have involved (usally immigrant) girlfriends moving in (and out) of a victims life with precision planning and rich rewards - and little chance of prosecution. Sadly, everyone needs to raise their guard when admitting new people to their lives. If there is one tip I can give, never disclose your date AND place of birth - in the UK that gives anyone the ability to get your birth certificate.
4. anonymous
Being a recent victim of this I approached the police in the hope that the matter will be dealt with swiftly. I was disappointed to learn that ID theft according to the officer is NOT a offence under the current law!!!
I have evidence to prove who the person is and would like them to be evicted from my property, however I have had little support from the estate agent through which my property is rented!!
I now fear as to what NEXT??