Frightening Identity Theft Statistics the Media Will Not Tell You

With the rapid growth of information technology, a huge increase in the number of cases of identity theft has occurred. According to a 2006 study reported by the Identity Theft Resource Center, there are more than 15 million Americans who have been victims of identity theft. A new case of identity theft occurs in just over every two seconds. Identity thieves use their victim’s information to access checking accounts, open new credit cards, and to buy cell phone service.

Though the statistics about these crimes are unsettling, knowing about identity theft enables you to better protect yourself.

How do I know my Identity has been stolen?

It can take a while to discover that identity theft has occurred, though usually a person discovers he is the victim of identity theft within three months. At this point the lengthy, costly, and emotionally grueling process of trying to undo the ramifications of identity theft begins.

How Long Does it Take to Repair Identity Theft

Some cases of identity theft can be solved more easily than others. For example, the loss or theft of a credit card can be more quickly resolved than the theft of one’s social security number and the ensuing creation of a “twin.” On average, the victim of identity theft spends 330 hours trying to rectify the situation, over anywhere from four to six months to years. But complex situations can take more than 5,000 hours to settle.

Costs of Identity crimes

Identity theft victims end up investing not only their time but a significant amount of money in the efforts to recover their identity. On average, victims spend between $850 and $1378 for related expenses, and lose from $1,820 to $14,340 in wages for time taken off. Businesses also take a financial hit from identity theft, to the tune of $221 billion a year worldwide, according to the Aberdeen Group.

Don’t forget the emotional cost…

Though the monetary and time costs of identity theft are profound, the emotional costs can be even greater. Feelings of anger and rage effect 85% of victims, while 45% experience denial and disbelief. An inability to trust people arises for 42% of victims, and feelings of being defiled by 45%.

There are good reasons for these protracted feelings. Identity theft damages a person’s credit, often making it difficult for her to secure a loan or credit. When credit or loans are secured, 19% of victims end up with higher interest rates and 16% with higher insurance rates. For the majority of identity theft victims, 70%, the damage done to their credit ratings is extremely difficult if not impossible to repair.

Who are identity thieves?

Surprisingly, 43% of identity theft victims say they know who is to blame. Perhaps not surprisingly, domestic harassment or abuse, overlap with identity theft in 16% of cases. In an additional 14 to 25% of cases, victims suspect their identity was stolen by someone in a business with access to their personal information. In cases of child identity theft, the child’s parent is most likely the perpetrator.

Once the identity theft has been discovered, about 20% of victims manage to get their credit report corrected with one request. For the other 80%, discovering the crime marks the beginning of a long battle to re-establish one’s financial credibility.