IDENTITY THEFT PROTECTION

Identity theft protection

Identity theft protection

Introduction

Identity theft, also known as identity fraud, occurs when an individual's personally identifying information is used without permission and/or knowledge by someone else (often a stranger). It is a form of impersonation that enables someone to commit fraud and generally results in financial harm to the individual and financial gain to the impersonator. During the past decade, the increasing amount of personal information available on the Internet has made this a growing concern.

A person's identity refers to that information that distinguishes him or her from other people. In some ways, it encompasses a person's accomplishments and is closely connected to reputation. A person's identity relates to information that exists, whereas a person's reputation reflects opinions about a person's identity.

More specifically, particularly in the context of identity theft, identity refers to the pieces of information that are linked to personal and/or financial value. This set of information comprises both public and private information. For example, a person's telephone number and street address, often available in the public domain, are connected to a person's identity. Confidential information, such as a person's social security number, mother's maiden name, PIN numbers, credit card numbers, and so forth, also contributes to a person's identity. By acquiring access to this information, an individual can impersonate someone else to perform fraudulent transactions, often for financial gain.

Interestingly, there are generally two forms of theft at play. First, there is the theft of the individual's personally identifying information because the information is acquired and/or used without the permission of that individual. The theft that takes place is different from theft of property in that the original owner still has access to his or personal information. The difference is that the value of that information has been depleted because, once misappropriated, it no longer relates uniquely to the original individual but now also points to the imposter as well. Second are the benefits associated with the impersonation. While identity theft is often associated with financial gain (i.e., the theft of money), it can also be used to acquire unauthorized entry, privileges, and/or benefits.

Body: Discussion and Analysis

Techniques

Although identity theft is ostensibly on the rise, it is not a new phenomenon. Prior to the Internet, unscrupulous people stole mail or rummaged through other people's trash (dumpster diving) to obtain personally identifying information such as credit card numbers. Others have been found to have eavesdropped on private conversations in public venues to obtain that sort of information (shoulder surfing). According to a 2003 survey by Privacy & American Business, only a small portion of identity theft—16%—is attributable to friends, relatives, or coworkers. People nevertheless remain wary of the people with whom they do business because anyone to whom you give your credit card or other personal information (i.e., in a bank, store, etc.) has the opportunity to misappropriate that information.

Two new techniques for facilitating identity fraud have emerged as a result of society's growing use of and reliance on the Internet and ...