What is Identity Theft?

There are as many answers to that question as there are criminals who perpetrate it – and that’s a lot. From the nonprofit Identity Theft Resource Center, comes this reasonably comprehensive definition:

 

“A crime in which an impostor obtains key pieces of personal identifying information (PII) such as Social Security numbers and driver's license numbers and uses them for their own personal gain.  This is called ID Theft.  It can start with lost or stolen wallets, pilfered mail, a data breach, computer virus, phishing, a scam, or paper documents thrown out by you or a business (dumpster diving).  This crime varies widely, and can include check fraud, credit card fraud, financial identity theft, criminal identity theft, governmental identity theft, and identity fraud.”

 

That’s a good starting point, but for a deeper understanding of the crime, you have to examine the other, non-financial ramifications of identity theft.

 

The Impact of Identity Theft
Many victims liken their experience to one of rape, torture or terrorism It’s not uncommon in the aftermath of identity theft to feel frightened for one’s safety and the safety of one’s family. After all, someone knows who you are, the date of your birth, your Social Security number. They very possibly know all the same about your children, as well as where they go to school. They know where you work, what you earn, where you shop and where you bank.

 

And where did the thief get all that information? Most often it comes from a lost or stolen wallet, or from the victim’s mailbox. The idea that someone was in your driveway or on your front porch stealing mail from your mailbox has got to diminish feelings of personal safety and security.

 

It’s not hard to understand a lingering paranoia. We hear all the time that when identity theft victims know who the perpetrator is, it’s very often a family member, friend or co-worker. Who can you trust? Pretty soon you’re wondering if maybe it’s that guy you always chat with when you stop for coffee in the morning. Maybe it’s the receptionist at your dentist’s office. Maybe it started with that girl your brother-in-law brought home last summer.

 

An elevated stress level may come from the fact that even after discovering the identity theft, the scope of the attack may be revealed over a period of months or years, one bad debt and one bill collector at a time. If your credit is damaged badly enough, or if you’re suddenly the horrified owner of a criminal record, the total magnitude of the crime may be revealed by lost career opportunities. The hits just keep on coming.

 

These things take a toll on relationships—with friends who are tired of hearing about it, with family members who have become suspects, and definitely with spouses. Whose fault was it, after all? Who uses the credit cards most frequently? Who neglects to shred credit card offers? If financial stressors are one of the most common sources of marital strife, financial stressors resulting from identity theft have to be even more problematic.

 

It’s easy enough to quantify the number of victims per year, the amount of money lost, or the number of hours spent trying to resolve credit issues. But a real definition of identity theft includes the larger cost.