Now to answer your question “how can you stop the fraud?” That is the million dollar question. The sad short term answer: right now in this moment of time, ID Theft fraud is like a massive avalanche building up speed and volume as it thunders down the mountainside. According to the FTC, Identity theft affects approximately 10,000,000 people a year, and it is increasing over last year’s numbers.

Why? Because identity theft is such an easy crime to commit, and when done right, so easy to hide from the law.

Curtailling identity theft is similar to repairing the economy. There is no “quick fix.” There are no easy answers. It will take time to permanently fill the loopholes that make the crime so easy and lucrative. There are many components to this crime. It is like a massive spider web. Not a well constructed, orderly web, but one built by a group of spiders that all build over each other’s work. Theives easily disappear back into the tangled web which hides them from the eyes of the law.

Here are some of the challenges:

Identity theft is the silent crime. If a thief robbed you at gunpoint, you would know it immediately. You could take action, and get on with your life. Figures released 2 years ago indicate over 40% of ID theft victims do not learn of the theft for over a year. As the thieves get smarter, this percentage will grow.

Then there is the identity thief profile. It could be a single drug user supporting his or her habit. It could be an international crime ring, or an international terrorist ring raising money for the cause. Disgruntled employees steal and sell 1,000’s of personal files from their workplace. Janitors are paid by crime rings to collect data from offices they clean, or food servers at restaurants can use skimming devices to collect credit card information. The scamming tools are abundant and simple, and a whole new generation of con artists is coming alive. The list of profiles continues to grow.

Technology compounds the problem. The tools of the trade are readily avaiable online. And the list of tools and tricks multiplies rapidly.

Smart thieves steal out of state, or across country, and the trail is difficult to follow. The prosecution statistics are dismal. Only 1 in 700 is actually prosecuted. And when they are caught and brought to trial, depending on the state, they may only get probation.

Collective steps to stop the fraud:
#1 Consumer education - stop being an easy target.
#2 Take responsibility for your personal information where you can.
#3 Massive consumer voice - Ask businesses how they are protecting your information. (Because businesses collectively lose more personal customer information than you will ever give out on your own.) Tell your state legislators what you want and need for the safety of your family. Fight back.
#4 Have an effective Identity restoration plan in place. When you have professional investigators sifting through the shattered pieces of your identity, not only will you get your life back together much quicker - it also increases the odds of identitfying the thieves.

There is much more to this answer. Over time, all this infomation will be broken down into posts, and categorized, so stay tuned.