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Survey Indicates ID Theft May Be Diminishing
netbuzz passed us a link discussing a survey conducted by major credit firms. Keeping in mind the source (CheckFree, Visa, and WellsFargo), the results indicate identity theft may be on the downswing as consumers wise up to scammers. The number of respondents that reported a fraudulent account created with a stolen identity dropped by a full half percentage point between 2005 and 2006. Overall fraud apparently dropped by some 12% over last year, representing $6.4 billion in fraud reduction. Again, consider the source: identity fraud is still apparently costing some $49.3 billion annually.
no pun intended.. maybe.
A talking moose wants my credit card number? Wait a minute.. I'm not falling for that again!
https://www.eff.org/https-everywhere
Perhaps the people phishing for card numbers, SSN#'s have amassed so many at this point that they can still sell large blocks of them to unwitting thieves, even though a small number of them have already been flagged as potentially stolen by the financial institutions.
Then again, maybe the theives can purchase these blocks of numbers from the phishers using their credit card number to try and purchase them...
Was the survey really sure that they were talking to CheckFree, Visa, and WellsFargo?
One line blog. I hear that they're called Twitters now.
It's interesting that they're reporting this ; but you can't take flat-out numbers with a grain of salt. They're either correct or complete lies ; and I think we all know they have to be complete lies.
These companies don't report half the cases of identity theft to end-consumers, banks and definitely not the police because they don't want to alarm anybody -- especially when the case is unsolvable. I've had my bank card 'suspended' 3 times in the past two years because someone has stolen my pin and copied the card at a gas station or variety store and the bank tells me only, "The card was copied along with a number of other cards. Your account hasn't been effected, just come into the bank for a new card and choose a new pin".
My account hasn't been affected because the bank noticed it and silently footed the bill ; only even bothering to tell me because I couldn't use the card. I imagine a credit card that has no PIN on it - you would never notice ; and how much easier would it be to copy a credit card. You don't need to read the pin over someone's shoulder.
If theft is down or up you'll never know the truth. If it's down by half, why wouldn't they say it's down by 3/4's. Even a reduction, if it occurred would likely be embellished.
Speaking of embellished.
Ace
We sent a survey out by e-mail asking people for their name, phone number, credit card number, SSN, mother's maiden name, and asking if they had their identity stolen in the last year. 99% of those who responded with all the info, said they hadn't, while 80% of all responses said, "I'm not falling for that again." From this we conclude only 1% of people on average have been victims of identity theft.
...or that could be their methodology. It is hard to say since they do not seem to have published it, effectively making this study useless marketing. That makes sense given who paid for it.
So 49.3 billion is being lost each year. Assuming 300 million people in USA, that's $164 per person on average....
Thats funny because in the 2006 identity theft rose 100% percent for me.
Has anyone else experienced this?
Looking at this article, I was wondering about the need for such a survey. Wouldn't the agencies involved be taking an active part in working with identity theft? Last time I checked, when you find out your identity has been stolen, you notify the Credit Card Companies and credit agencies. What I am wondering is how many people have been victims and do not yet know about it. With initiatives such as FACT ACT and consumer awareness, Id be interested to know how often people are checking to see if they have been victims of identity theft. I think next time we will ask the fox how safe the henhouse is... That is a survey I would be interested in!
Cheers
Robert
Just a week or so after Clinton's announcement about sponsoring new legislation for a "Privacy Bill of Rights", there's a study released from the credit card industries which shows that the problem of identity theft is not so bad and is, in fact, getting better. What a coincidence.
I guess that's better than a plain old regular half a percent.
Don't disappoint your bird dog. Go to the range.
Consumers may well be wising up. But obviously, the attacks on the credit card processing centers, banks and other institutions can yield hundreds of thousands or millions of times as many personal ID's, making them far more attractive and rewarding as targets to identity thieves.
So, are these organizations doing more to protect the databases they hold?
Someone stole my Slashdot ID to post bad messages and ruined my karma! :P
Keeping in mind the source (CheckFree, Visa, and WellsFargo)
I recently got a "check" from my credit card for $20. By depositing that check they would automatically enroll me in an identity theft insurance protection plan.
For my convenience, they would bill my credit card (plus interest I assume).
Basically, this is legal fraud.
First, my CC is unsecured credit. If I don't pay, its no big deal aside from them screwing my credit or whatever they do.
My point, is that don't these people want the illusion that ID theft is on the rise so that they can sell this insurance to people?
Stuff like this makes me question humanity.
All this tells me is that all the old scrams that have been working so well in the past, have been passed around enough that they are fading out. It has been easy for scammer to operate, due to the fact they didn't really need to come up with new ideas, just copy and paste the old ones. If the old scams are starting to not work, I bet you will find a reworded one right around the corner soon. Scamming has been around for years, and probably always will. All it takes is for a new scam to not sound like the old ones, and the figures will be right back up. But hey, I welcome the surprise if the people at large finally wised up to such trickery.
"I only know 2 things: The love for me, and the fear of me."
I'm dealing with identity theft right now, but somebody elses. A Guy with a SS# 1 digit off from mine got his ID stolen, but it's showing up on my credit report. Should be easy to clean up, right? Nope. Have do the same exact steps -- wasted hours on phone calls, faxes, and police reports to prove that bad credit under a different name, address, AND social security number is really not my bad credit.
If you're wise, you will take advantage of the free credit reports, and get yours checked at least once a year.
why shouldn't it be winding down, anybody whose social security number or bank card ID is not compromised, please post it.... ;)
if this is supposed to be a new economy, how come they still want my old fashioned money?
I called up my credit card company a couple months ago to report some fraudulent transactions on my statement. They informed me that since identity theft is declining, they don't believe me, and so they were rejecting my claim that I was a victim of identity theft.
... well, maybe that could be the source of their figured?
now we need to go OSS in diesel cars
I have a different perspective on scams and phishing (which often lead to ID theft).
In a way, the perpetrators of these ripoffs are actually doing humanity a favor. They are making stupidity more painful.
About the only case during which ID theft can happen that you cannot easily attribute (at least partially) to a fault of the victim is when customer information is stolen from a legitimate business and then abused to steal identities. Practically all of the rest of it relies on the naive nature and/or the greed of the victim, and both of these should be recognized as weaknesses, the exploitation of which is an eventuality. Put another way, anyone who sincerely believes that online requests for account numbers, their social security number, etc. should be responded to without first verifying their legitimacy is a fool, is begging for something like this to happen, and should see any theft that does happen as an educational experience in why you don't trust random, unverified strangers with your most confidential personal information.
If someone walked up to you in the street and said "Hi, I'm a manager at your bank, we need your account number and all of your personal information," you'd likely tell them (however politely or however rudely) to fuck off. At the very least, you'd ask to see some credentials before you'd actually give out any personal information. Why is it that when the same thing occurs via e-mail, so many people people shut down their common sense and critical thinking skills (whatever degree of those that may be left) and happily say "oh wow, I sure am glad they contacted me for my full name, address, date of birth, social security number, mother's maiden name, and account numbers before they locked my account!"? Would you really feel sorry for someone who did this? Or would you decide that the scammer in this case is providing one of the few remaining incentives to not be so careless and stupid with things that are important?
A simple observation can be made: all scams rely on either the stupidity (the willingness to give confidential information to anonymous people) or the greed (the expectation of receiving large sums of money for very little or no work), or both, of the victim. It would be impossible or nearly impossible to arrest and prosecute every last phisher and con artist in the world who wants to rip people off; indeed, even attempting to do so would require a police state. While it is still a good idea to go after the scammers, since it increases the risk of earning a living by ripping people off, this alone is never going to solve the problem. I propose that the problem could be solved not by going after relatively anonymous scammers who pop up all over the globe, but by hardening the targets. This is never going to happen so long as we coddle the less-bright (as evidenced by behavior) among us by telling them that they're innocent, helpless little people who fell victim to the big mean old scammers, but it could happen if we remind them that the event did not happen in isolation, that they exhibited contributory negligence, that in most cases no one gets your confidential information unless you personally give it to them, and that their lack of discernment helps to fund organized crime.
Just an idea, and it's something that I have never seen implemented on any sort of large scale, but what I do know is that what we are doing right now is not very effective. In any case, Aesop definitely had it right: a fool and his money are soon parted. You can't realistically remove the money from that equation, and you can't remove the desire to steal from every person on the planet, but you can certainly remove the fool from that equation.
It is a miracle that curiosity survives formal education. - Einstein
How can you call it theft if nothing physical has been taken? Just call it what it was called before the Internet existed: fraud. It always has been fraud and it always will be fraud.
Quick note: I am a law enforcement officer and have a background in network management.
One of the issues I face in investigating identity-theft related crimes is the lack of knowledge the general consumer has. That seems to be changing.
About a year ago, the typical victim of identity theft would ask questions like "How can they be using my credit card if I have it right here?" or "I'll bet it was the waiter at that restaurant last week who looked at me funny. He can charge any price he wants on their system, right?"
Now, my typical victim of identity theft is much more aware, and usually has the credit reporting agencies and banks notified of the problem within hours instead of days or weeks. They know in advance what to do, and don't have to be told how to help themselves.
I have to hand it to the average citizen. They are catching on about internet safety. Not completely and not quickly, but it's a major improvement.
You mean those few thousands of corporate email accounts I just waded into this morning, allowing me to send mail from anyone's account, indicate a downturn...?
What's a guy gotta do to get some dust in the air nowadays, anyhow...sheesh!
I advertised a room on craigslist and some of the messages that I got were obviously sent to me by phishers trying to get my bank account information. It was quite easy to distinguish these attempts from legitimate inquiries. The 'people' in these messages were more interested in creating an image of themselves than trying to get a viewing. The language in the message would be more appropriate for a personal ad rather than the topic at hand (renting out a room.) Some 'people' even send fake photos of themselves (while using some model pictures no less.) I had to use craigslist before (a year ago) and I haven't noticed such a thing. I think the phishers are becoming more insidious, creating a story that would require the ad-poster to give out bank account info.
You can't handle the truth.
Identity theft illustrates the difference between accidental systems and designed systems.
Provide a design proposal for a national system that provides authentication for every social networking site, every ssh, every sftp, every login domain, every banking website, every email account.
The system design principles:
1.) All users will have a single universal password for all of these authentications.
2.) The user may not change their password unless something unusual has happened.
If you need text styles to communicate then you don't have a message.
That maybe the credit industry just doesn't want that type of publicity. So they tighten things up before they became a victim spilling the beans to the public, news, and in snail mail to their ill customers.
Some of it may be diminishing due to people who "wise up" to scammers, but those of us who already knew better still get screwed by third parties who lose SSN information. Like my old school, Metropolitan State College of Denver. Or the people who manage my student loan payments, Nelnet. Basically, fuck those guys right in the ear.
Since when did a reduction in half a percent become statistically significant?
A year ago I got a call from AmEX about suspicious purchases totaling over $2000. Not only did I tell them that the charges were fraudulent, but I had yet to use my card - with a new CC # - since the new one was mailed to me. An AmEX employee had stolen the CC number.
Eternity: will that be smoking, or non-smoking? I Corinthians 6:9-10