Identity Theft Myths and Facts

There are a lot of misconceptions about identity theft. I'd like to clear a few of those up for you.

Myth: The main danger from this crime is a financial one.

Fact: The financial losses from identity theft are massive, to be sure, totalling $46 billion. This would more accurately be called identity fraud, though. Identity theft facilitates many other types of criminal activity such as terrorism, blackmail, pedophilia and tax evasion.

Myth: Identity theft is pretty cut-and-dried -- someone steals your SSN or credit card information and opens accounts in your name.

Fact: Again, this would be more appropriately termed "identity fraud." The truth is that identity theft takes many forms. Sometimes a stolen identity is not even used by the criminal, as in the case of database break-ins. In many cases the person will simply clone the victim's identity to conceal themselves from authorities, a common practice amoung pedophiles and ex-convicts. In some cases the stolen identity is used to obtain medical treatment. In some cases, the identity is only partially stolen (common among illegal immigrants who will use Joe Blow's SSN under the name Paco Bellgrande.)

Myth: I don't need to worry about identity theft because I have nothing to steal.

Fact: Nothing could be further from the truth. In fact, the unemployed have recently become a favorite target of identity thieves. Why? Because they probably will not invest the 30 cents a day to protect themselves and thus make easy targets.

Myth: If I do become a victim, I am protected from financial loss.

Fact: It is true that legislation puts the burden on financial institutions, but it is also true that the burden of proving that your identity was stolen falls on the victim. It can take years to sort everything out. How much is your time worth? Plus, as mentioned, financial losses are only a tiny part of the picture.

As you can see, there are many misconceptions about this crime. The main fact that needs to be known is that 10 million Americans will become victims every year. You don't want to be one of them, do you?

Do yourself a favor and protect yourself.