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IDENTITY THEFT INFO > PREVENT Fraud > Getting Away With It - 3 Reasons Why ID Theft Pays

Getting Away With It - 3 Reasons Why ID Theft Pays

1.  Victims rarely (if ever) know what hit them.

It takes an average of 14 months before victims discover that their identity has been stolen to commit a crime.

•  Victims are not liable for fraudulent charges/debts accumulated by identity thieves, due to Federal law. Still, banks and credit card companies regularly turn bad accounts over to collection agencies, and continue to report erroneous information on credit reports – even though they know the accounts are fraudulent and all collection and reporting activity should stop.

• Because fraudulent accounts make up such a large “overhead” expense, banks and credit card companies often hope that victims will eventually collapse under the onslaught of bills and collection agencies and eventually pay for items they never purchased in the first place – simply to restore/protect their good names.  (Identity Theft Resource Center)

•  The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian and TransUnion— to provide you with a free copy of your credit report, at your request, once every 12 months.  The Federal Trade Commission, the nation’s consumer protection agency, enforces the FCRA with respect to consumer reporting companies.  (FTC.gov)

2.   Once the thief has your information, they have lots of options.

Over half of identity theft victims who call the FTC Identity Theft Hotline report that their identity has been used illegally in multiple ways:

- Credit card fraud – a card is opened in the victim’s name, or unauthorized charges are made on an existing card. (Represents over 50% of victims who file reports with the FTC)

- Unauthorized phone or utility services – victim has a fraudulent new utility account (cell phones included), or perpetrator has accessed an existing account.

- Bank fraud – bank account is opened in the victim’s name, or withdrawals are made from their existing account.

- Fraudulent loans – obtained in the victim’s name (personal, business, auto, real estate, etc.).

- Government documents or benefits – obtained or forged in the victim’s name for driver’s licenses, tax returns, or government benefits.

- Miscellaneous fraud – including employment data, medical treatment or services/drugs, evading legal sanctions, criminal records, tax refunds, Internet accounts, bankruptcy, leases, purchases of securities and investments.

3. Because they (probably) won’t get caught.

Let’s face it: Most identity thieves are never caught.  Of the thousands of cases, precious few are ever brought to prosecution. Most financial institutions consider ID theft an unavoidable cost of doing business.

Even the Attorney General of the Commonwealth of Massachusetts, herself a recent identity theft victim, says, “the chances of [identity thieves] ever being prosecuted are ‘slim to none’.”

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