Identity fraud up 12%; scammers don’t break for recession

It seems the bad guys never take a break. A new report shows that identity theft last year ratcheted higher in 2009 at a rate much faster than the growth of the economy or the pace of inflation.
The 2010 Identity Fraud Survey Report, issued by Javelin Strategy and Research, found that 11.1 million adults were victims of identity fraud last year, an increase of 12 percent. And, the total amount of the fraud grew by 12.5 percent to $54 billion.
“Whenever our nation has faced a difficult time, thieves have found a way to use the problem to their advantage. In my adult life, I’ve never seen more variations of old scams and the degree of sophistication in newer scams,” said Robert Siliciano of the San Diego-based Identity Theft Resource Center.
That includes such classics as stealing credit cards or numbers and dumpster diving for financial statements. And, now scamsters are using tools like Craigslist to sell bogus products and capturing credit card numbers of other personal information.
It was once thought that identity theft involved illegal access to bank accounts and other financial assets. However, the Federal Trade Commission says that tough times lead to other uses for stolen identity.
“For instance, thieves can steal identities to gain employment, immigrate into this country, and evade law enforcement. Medical identity theft also has received attention in recent months.
“It occurs when a thief uses the name or insurance information of another person to obtain medical care. As a result, not only are medical identity theft victims charged for the services they did not incur, but even more importantly, their medical records may be corrupted, thus compromising their care in potentially life threatening ways,” said Betsy Broder, assistant director at the FTC.
Just as medical ID theft increases during tough times, the same can be said on scams targeted toward people trying to find jobs. The Better Business Bureau warns job hunters to be extremely cautious in their search for work because scammers are out to take advantage of them and make a fast buck.

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San Diego Source > Commentary > Columnists > Identity fraud up 12%; scammers don’t break for recession.

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