Identity Theft

Identity Theft

Definitions of Identity Theft

There is no single accepted definition of identity theft, and it is common to find broad definitions presented in the media and policy documents. Broadly defined, identity theft occurs when a criminal uses another person's personal information (such as name, address, social security number, or credit card details) without permission to commit fraud or other crimes. It is often, therefore, referred to as an “enabling offense”—the identifying information is a tool that the criminal needs to commit the “target offense.” The problem with broad definitions, however, is that they ignore the important fact that the target offense can range from simple credit card fraud to the permanent adoption of a false identity and the more complex activities of organized criminal networks.

Extent of the Problem

Despite repeated claims that identity theft is one of the world's fastest-growing crimes, relatively little is known about the true extent of identity theft and identity fraud when compared with other crimes. The best estimates come from the United States, which recognized identity theft as a statutory offense in 1998 with passage of the Identity Theft and Assumption Deterrence Act and where a number of national surveys on the subject have been conducted. The Federal Trade Commission administers a central repository for identity theft complaints and, in 2005, reported 255,565 incidences of identity theft, totaling losses of $56.6 billion. However, victim surveys (including the National Crime Victimization Survey) estimate the victimization of between 3 and 4 percent of Americans annually.

In Europe, where identity theft is not yet considered to be a widespread problem, data are scarce. The exception is the United Kingdom, which has recently prioritized identity theft as a serious and fast-growing crime problem in need of urgent addressing. Early estimates from the Home Office suggest that 137,000 people are “affected” by identity theft each year, costing £1.7 billion annually, but there is little evidence to support these claims. Other studies suggest the victimization of 1 in 10 people and as many as 1 in 4 experiencing identity theft (either directly or indirectly).

Studies on both sides of the Atlantic suggest that young people are most vulnerable. In the 2004 National Crime Victimization Survey conducted by the U.S. Bureau of Justice Statistics, households where the head was between age 18 and 24 were significantly more likely to be victimized, as were high-income households. Rural households were less likely to be victimized. U.K. studies concur that people under the age of 30 are most vulnerable.

Impact on the Victims

For each episode of identity theft or fraud, there are multiple victims: the individual whose information is borrowed or appropriated (the primary victim) and any individual, business, or institution that is subsequently defrauded or duped by the perpetrator (the secondary victim or victims).

The primary victim may experience a range of different forms of harm. Although the immediate loss of large sums of money is a commonly held fear, it is actually quite unlikely for the primary victim to be held liable for hefty ...