Identity Theft Reviewed

Cases of identity theft are increasing in frequency every single day, as new victims emerge from both physical and virtual data theft. Criminals are becoming more aware of the potential to incur new forms of damage upon victims, and the demand for database information is increasing. The transparency of data in 3rd party databases provides a growing body of data victims who are not even aware of the ID theft until after the fact. Even conscious, protective citizens who take all the necessary precautions can still fall victim to identity theft.

In one prominent case, a New York consumer provided information to a company claiming to be a collection agency. As reported in the Better Business Bureau’s complaint file, there is a growing trend of utilizing fronts to get consumers to voluntarily give up personal information. This information is used, in turn, to help further steal credit from a weakened consumer. Since the consumer was in debt (which the criminal knew from harvest information), this made her particularly vulnerable to identity theft. By volunteering the information in a vulnerable state, the consumer was then further put into debt through a recurring type of fraud. Criminals were able to refinance loans in her name, taking lump sum advances on her account and credit transfers, which were virtually impossible to reverse. The most vulnerable victims are often able to be scammed multiple times – criminals have little conscience for taking advantage of the weak. The very programs designed to help her out of debt actually added several years to her credit in which she was not able to refinance or get help from credit agencies.

In another prominent case, an East Coast businessman was held culpable for credit card payments made in his name even though the thief was caught. Since the system is decentralized and financing institutions conduct their own independent reviews, identity theft victims must often come good with individual level creditors. In the case of the Connecticut sales professional, over $250,000 in purchases remained on his account even after the thief went to prison. It took years to help solve the case, as reported in CBS News, and over $100,000 in debt remained even after working directly with his creditors. Since debt collection agencies “pass the buck”, consumers have to deal with intermediary institutions – leaving them vulnerable to collections in a vicious cycle.

How to Avoid Becoming a Victim
There are several important steps to take if you believe you may be a victim, including making immediate contact with your financial and government institutions. An ID theft prevention service, such as Trusted ID, however, can put your one step ahead of the game by alerting you to potential fraud that may otherwise escape your radar.