California Ranks #2 in Identity Theft Complaints Nationwide,
According to FTC
Credit Card and Employment Fraud Top Forms of Identity Theft in
State
SCOTTSDALE, Ariz.--(Business Wire)--
A comprehensive study exploring the identity theft crisis in
California was released today by Identity Theft 911(R), a leading
provider of identity management solutions. In addition to detailing
the increasing diversity of identity-related fraud, the white paper
highlights steps that state officials and businesses are taking to
combat this growing problem.
"Each year, more and more consumers fall victim to various forms
of this insidious crime. This report puts a spotlight on California,
highlighting several issues that are likely responsible for driving up
these numbers in the state," said Judd Rousseau, Chief Fraud Officer
of Identity Theft 911. "However, California legislators and government
officials, law enforcement officers and non-profit groups are taking
aggressive steps to fight identity theft as highlighted in this
report."
"The fact is that identity theft is a growing problem," said Linda
Foley, Founder of Identity Theft Resource Center(R) (ITRC). "There are
a lot of people being hurt by this crime (in terms of) businesses and
as individuals."
According to study's analysis of the Federal Trade Commission's
(FTC) complaints, nearly 1.5 million Californians were victims of
identity theft in 2007, which is equivalent to 15 Rose Bowl stadiums
of spectators having their identities stolen in one year. While
stealing phone and utility services, and taking money through checking
account takeovers or illegal money transfers, account for a vast
majority of identity fraud-related activity, the report finds that
certain groups in California are responsible for the continued
increase in fraud cases in the state.
Undocumented Workers, Car Thieves and Gang Activity Spike Identity
Theft Activity
California ranks highly due to its regional characteristics. In
the state's central valley's farmlands, undocumented workers account
for the increased rates of employment-related identity theft as they
rely on stolen or fraudulent social security numbers to secure
employment. California is breed to a new generation of car thieves
who've traded hot-wiring tools for fake checkbooks and stolen
identities--a problem that state highway patrol officers responsible
for investigating auto-related fraud are seeing increased activity.
Gang members and organized crime, meanwhile, have discovered
identity theft as a means of generating off-the-books income, as have
addicts hooked on methamphetamines, a habit for which identity theft
is nicely suited. In addition, California metro areas are rich for
data mining. California Treasurer Bill Lockyer, who served as the
state's Attorney General from 1998 through 2006, says Californians
ought to take the identity theft problem "very seriously." "It's very
costly on people's time and wallet," he adds.
State of California Proactive In Protecting Consumers
While identify theft continues to plague the state, California's
heightened response to this crime is cause for optimism, according to
the report. Collaborative efforts between law enforcement agencies,
state and district attorneys, nonprofit organizations and the
California legislature has made California a model state for identity
theft deterrence.
For example, California continues to pass pro-consumer legislation
intended to curb the growth of identity theft. Such initiatives
include landmark credit and data breach notification laws; legislation
prohibiting businesses, academic and government institutions from
publicly displaying Social Security numbers; and regulations that
prohibit financial institutions from sharing or selling personally
identifiable nonpublic information without obtaining consumer consent.
"Identity theft will continue to be a problem requiring
individuals, businesses and government agencies to be constantly
vigilant," said Debra Bowen, California Secretary of State. "We all
need to do a better job of protecting sensitive personal information
and purging data that we don't need, especially information in
'electronic filing cabinets.'"
Other findings from the report include:
-- Identity theft cost Californians an estimated $749 million in
out of pocket expenses in 2007.
-- California residents spent an estimated minimum six million
hours - or 250,000 days - resolving identity theft issues.
-- Of the 50 metropolitan areas ranked highest by the FTC in
terms of consumer identity theft complaints, 16 were in
California, which contributed the most high-ranking cities in
any state.
"Taking six million hours to resolve identity theft-related issues
is a conservative and underestimated number," said Jay Foley,
Executive Director of ITRC. "The burden of undoing the damage and
restoring the victim's good name takes a toll on an individual's life
causing stress and anxiety."
This white paper is being released as part of a series of ongoing
reports from Identity Theft 911 to educate and inform consumers on one
of the fastest growing crimes today. For a copy of this and other
state white papers, please visit www.identitytheft911.org.
About Identity Theft 911
Identity Theft 911(R) is an industry leader in identity
management, providing innovative, enterprise-level fraud solutions and
consumer education to small-to-midsize as well as Fortune 500
companies; including many of America's largest insurance companies,
corporate benefit providers and a wide spectrum of financial
institutions, colleges and universities. More than 12 million
households are enrolled in Identity Theft 911's comprehensive identity
management programs. For more information, call 480-355-8500 or visit
www.identitytheft911.org.
Padilla Speer Beardsley
John Scally / Amanda Sham
jscally@psbpr.com / asham@psbpr.com
212-752-8338
Copyright Business Wire 2008
