The Sting of Identity Theft and Identity Fraud
Date Added: May 28, 2008 10:18:55 PM
Posted In: Finance & Money
Identity theft and identity fraud have found their way in our daily lexicon as interchangeable terms referring to a crime of theft when personal data is fraudulently and deceptively obtained by another for economic or fiduciary gain.
Unlike fingerprints and eye retina information that are unique to a person and now used in biometric-based security systems, one’s personal data like credit card and bank account numbers, Social Security numbers, health and medical insurance number, to mention some, can easily be stolen. And when used by some unscrupulous people, they can cause its victims some real nightmare.
In many industrialized nations where cashless transactions are everywhere, many people have become victims of identity theft. Reports of unauthorized bank withdrawals and credit card purchases have grown over the years. In worst cases, identity thieves have assumed their victims’ identity accumulating large debts or even committing crimes in the victim’s names. The victim's loss is not limited to unauthorized purchases and withdrawals but can include the burden of restoring one’s credit reputation and correcting erroneous transactions.
In one case, a convicted felon was able to incur more than $100,000 in credit card purchases, was able to obtain home loans and other goods, all before filing for bankruptcy in the victim’s name. He was prosecuted and convicted for making false claims in his purchase of a hand gun.
He ruined the financial reputation of his victim who had spent close to $15,000 over 4 years just to restore his credit standing. This case prompted Congress in 1998 to enact new laws that defined identity theft as a federal crime.