Identity Theft: Rising Concerns and Fraud Trends

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Multiple recent surveys, released as the holiday shopping season approaches, show both consumers and companies are increasingly alarmed by identity theft.

One vendor that tracks stolen laptops found users rank identity theft above data loss or unauthorized file access when worrying about losing a laptop.

That same firm reported 62% of its corporate customers suspect more computers are lost or stolen than the public generally believes.

But laptop theft is only one source of compromised personal data; other studies point to rising online theft as well as losses from stolen wallets and break-ins.

An identity-theft research group documented a sharp uptick in information theft between 2004 and 2006, with fraud losses in 2006 ranging from small amounts to half a million dollars.

On average, victims reported about $87,303 in fraudulent charges tied to stolen personal data in 2006 — roughly a 78% increase from 2004.

About two-thirds of those surveyed said criminals used their data to open new lines of credit.

Nearly 30% reported their information was used to obtain cable or utility accounts, and 27% said imposters altered their existing credit-card accounts.

Security vendors and nonprofits are urging shoppers to take precautions when buying online this season.

Practical advice includes creating complex passwords (mixing letters, numbers and symbols), never emailing financial details, and avoiding links in unsolicited messages.

Consumers should also verify that checkout pages begin with “https” and retain order confirmations, related emails and seller contact information for their records.

A large-scale analysis of compromised identities across multiple breaches revealed another surprising pattern: thieves often reuse stolen data in targeted ways rather than dumping it broadly online.

Instead of mass-selling information, many fraudsters appear to funnel stolen identities into a small number of new phone numbers or addresses to intercept cards or merchandise.

Taken together, the findings suggest heightened vigilance is warranted—from stronger passwords and careful online habits to tracking devices and recovery services for lost hardware.

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