The Identity Theft Resource Center Releases
Identity Theft: The Aftermath 2006

A Paramount Report on the Impact of Identity Theft Victimization

The Identity Theft Resource Center® released an important report today discussing the impact of identity theft victimization. This report was not based on a census survey but rather one that invited confirmed victims of identity theft in 2006 to respond to a series of 44 questions. These ranged from the emotional impact this crime has had on their lives and their ability to recover their good name to the financial loss to the business community in goods and services.

It also should be noted that reported time periods were given at the time victims responded to the survey. The Aftermath 2006 does not distinguish between those who are still being affected from those who are not. Thus, certain measures of victimization represent conservative estimates since the assessment was limited to the ending date of the study.

The following are highlights of The Aftermath 2006 study. Tables and additional data can be found in the full report on the website.

Sources of Stolen Information: Between 2004 and 2006, there was a significant increase in theft via the Internet, lost and/or stolen wallets, the workplace and home/car robberies. It is important to note that a large percentage of respondents reported being victimized by those who may have had easy access to personal identifying information including friends, family members, ex-spouses/significant others or those in close contact with the victim, such as co-workers.

About the Imposter: Of those respondents who knew something about their imposter, victims reported their imposters have committed other crimes, experienced financial difficulties, have addictions and may have committed identity theft against other family members.

Uses of victim information: Nearly two-thirds of the 2006 sample reported that their personal information had been used to open a new credit line in their name, 29% reported their information was used for obtaining new cable/utility, and another 27% reported the imposter made charges to the victims’ existing credit card accounts.

Cost to Business: In 2006, respondents estimated the total value of all charges on fraudulent accounts in their name at $87,303. These figures ranged from $50 to $500,000. This reflects an increase of 78% from 2004 to 2006.

Victim Time Spent: In The Aftermath 2006, victims spent an average of 97 hours repairing the damage done by identity theft to an existing account used or taken over by the thief.

In cases where a new account was created, respondents in the 2006 study reported an average of 231 hours to clean up the mess. In some cases, respondents used such expressions “eight years and still working on it,” “too many to count” or “endless.”

Costs to Victim: Respondents spent an average of $1,884 dollars in out-of-pocket
expenses for damage done to an existing account only. These expenses include: postage, photocopying, childcare, travel, purchasing police or court records.
In reference to new accounts, respondents spent an average of $1,342 for out-of-pocket expenses which included: postage, photocopying, childcare, travel, purchasing records, legal help and investigators.

Inability to Clear Negative Records: There were a number of reasons provided by respondents which indicated negative information remained on their reports. Among the answers were: Credit Reporting Agencies (CRAs) kept putting inaccurate information back on the report (43%), credit agencies refuse to remove it (39%) and fraud alerts were ignored (30%). It should be noted that there was a sharp increase in victims (24%) who stated that they were unable to get a police report, more than doubling from 2004’s study.

Moment of discovery: In 2006, 33% responded that they found out within 3 months of the beginning of the case and 16% discovered the case between four to six months.

Extended involvement: In 2006, the majority of respondents indicated that it took up to 12 months to clear issues of all misinformation (59%). A moderate amount of victims (14%) stated one to two years. Unfortunately, another 27% indicated that it took two or more years to resolve their case. The inference here appears to be that identity theft victims are not resolving cases any faster and may be spending longer periods of time to gain complete clearance.

Unexpected secondary effects: Victims reported a number of problems including difficulties in obtaining credit, clearing accounts, obtaining a job, and adverse effects on insurance or credit rates, etc.

Child Identity Theft: Of those respondents who reported child identity theft, 69% said the thief was one or both parents or a step parent. Sadly, 54% reveal that the crime first began between birth and five years of age.

Victim Response to Family or Child Identity Theft: In these types of cases, some victims are still torn on how to resolve the case (29%), indicating that some are unwilling to participate in prosecuting a family member. In terms of the family’s response, victims reported a combined total of 51% in the following categories: the family is torn, the family is in denial or the family will turn against the victim if action is taken.

Emotional Impact: Few significant positive changes have occurred in the feelings of victims and in terms of reported victim symptomology. Two questions were asked: How did you feel at the beginning of the case (short term) and were there any symptoms that lasted more than three months or were so severe that you were concerned (long term). More than 45% of 2006 reported stressed family life, 27% felt betrayed by unsupportive family members and friends and 34% said their family didn’t understand.

The strongest feelings expressed were: rage or anger, betrayal, unprotected by police, personal financial fears, sense of powerless, sense they were grieving, annoyed, frustrated, exhausted, sleep disturbances, the desire to give up and stop fighting the system and 8% reported feeling suicidal with 13% feeling captive over a lengthy period of time. Unfortunately, initially 28% felt shame or embarrassment, 29% felt an inability to trust people and 27% felt an overwhelming sadness.

Non-financial forms of identity theft: TheAftermath 2006 illustrates that issues in these categories still continue to be a problem. The categories include: warrants being issued in the victim’s name; employment; medical services; counterfeit driver’s licenses; and that the victim’s real driver’s license is being used by the thief. These issues will be studied more in depth in The Aftermath 2007.

The Aftermath series of studies, as conducted by the ITRC, is the sole source of information of this type. All individuals invited to participate in this study were confirmed victims by the ITRC victim advisory staff.

About the ITRC
Established in 1999, the ITRC is a nonprofit, grant and donation funded organization that has conducted a similar study every year since 2003, noting changes in trends and patterns. In 2004, it was presented with the National Crime Victim’s Service Provider Award by the U.S. Department of Justice and Attorney General. It is a well respected voice of identity theft victims and works collaboratively with other entities to battle this crime.