Identity Theft Declined in 2006 (UPDATE: FTC Says ‘Not So Fast’)
From UPI last Friday, some good news, though hardly a reason to break out the champagne:
U.S. identity theft fell 12 percent in 2006, saving $6.4 billion, a major identity-theft report said Thursday.
Still, identity fraud cost the U.S. economy $49.3 billion, the Javelin Strategy & Research report said, with more fraud occurring in traditional, physical businesses than online.
About 500,000 fewer U.S. adults fell victim to identity fraud in 2006 than in 2005. Of the total U.S. adult population, 3.7 percent were victims, compared with 4 percent in 2005.
The growing use of online banking and financial sites that let people frequently monitor their accounts contributed to the decline, the report said.
Carlo at Techdirt is not impressed (para break added by me):
t’s probably worth noting that the study was paid for by Visa, Wells Fargo bank, and a check-processing company. Visa and Wells Fargo are no strangers to data leaks and identity theft, so you’d be forgiven for thinking they have just the slightest vested interest in downplaying the threat.
To be fair, the company that did the survey isn’t saying that identity theft is no longer a problem, but it’s hard to see this as much more than an effort by the companies that paid for it to try and say the problem’s not so bad. Perhaps the public has grown paranoid, but they should try telling that to victims, particularly those who spend lots of time dealing with identity theft’s lingering effects.
The point in the last paragraph of the first excerpt is a good one. Even if you don’t want to actually transact business over the Internet, it’s a good idea to register online at your financial institution(s) so you can check your account balances, review account activity, and detect problems more quickly. You can of course do all of this through the automated phone-inquiry systems that are usually available, but it’s much more tedious and cumbersome, and usually less complete.
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UPDATE: From Techdirt –
Now, the Federal Trade Commission has released its own stats on identity theft, and they paint a different picture. While the number of identity theft complaints made to the FTC has plateaued, losses reported to it have more than doubled since 2004 — contrasting the previous study’s claim that losses had fallen. It should be pointed out that the FTC figures aren’t comprehensive, either, since they only cover complaints made to the FTC, and it’s likely that a small proportion of identity theft victims ever bother to make such a complaint.











