In a recent article dated June 20, 2008 from npr.org, writer Dina Temple-Raston reports on the arrest of hundreds of people believed to be guilty of scamming the public out of millions of dollars of hard earned home equity.
She writes, “instead of stealing an identity to secure a credit card, scammers have been zeroing in on people they think have a lot of equity in their homes. They steal their identities, then go online and get a home equity line of credit on that person’s house and take the money.”
It’s a terrifying scenario for consumers who have worked hard for years to establish good equity and credit. As someone who works directly with victims of id theft, I know how frustrating it is for victims when the person who stole their identity is never caught or prosecuted. I am hoping that the news of these crooks getting arrested will bring about a feeling of justice for victims; that something is being done and people are being punished.
Temple-Rason concludes her piece with this warning, “the FBI is sending a specific message: If you are involved with mortgage fraud — whether on Wall Street with high-level investors, or on Main Street with ordinary homeowners — the bureau intends to catch and prosecute you.”
Score one for the little guy. For more, check out this video:
So much of what is written about identity theft today centers around the way in which it is perpetrated, the nature of the fraud and how this is evolving, and the failure of companies to keep personal information of their employees, clients and customers secure. What doesn’t tend to be as newsworthy or prominent is how identity theft impacts the lives of people.
A recent article titled “Dealing with ID theft can be expensive, emotionally draining and time-consuming” addresses this subject. It references an FTC study that highlights that more than 27 million people became victims of identity theft in the past five years, and that 41 percent of them were still dealing with the problem two years after it occurred. If further concludes that the recovery process could take about 500 hours and cost about $3,000.
Heather Wells who heads the identity theft restoration team for ID Experts is quoted in this article as saying:
“The emotions they go through is pretty similar to what victims of other crimes experience. First there is shock and disbelief. Sometimes shame is involved. They lose trust in other people. Sometimes problems with their spouses come up because it’s so stressful. Many cases involve family members or close friends who have done this. That’s probably the worst thing.”
While there is a lot that people can do to reduce their chances of falling victim to identity theft, the bad guys are continuing to grow in sophistication and an increasing percentage of ID theft is now perpetrated by organized crime groups residing outside the US. Combine this with the growing incidence of corporate data breaches which personal data is lost or stolen, and it would appear that the need for resources and assistance with ID restoration will only continue to grow.
“It is critical that we remember these numbers are people. These are people with lives that have interrupted, altered, torn apart and/or impacted for years to come. They are people with feelings and emotions whose outlook on life and interactions with others may change due to the invasive nature of this crime.”
Some of the key findings of this study include:
- 62% of the people responding said that the thieves had committed financial crimes resulting in warrants issued to the victim, two-and-a-half times more than the prior year
- While a third of identity theft cases are perpetrated by persons known to the victim, in 2007 there was increase in ID theft due to scams
- Victims spend and average of 116 hours repairing damage done by an ID thief to an existing account, and 158 hours when dealing with a new account that was created with their identity
The ITRC is a non-profit organization that is “dedicated exclusively to the understanding and prevention of identity theft”.
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by Heather Wells
