Identity Theft Effect

IDENTITY THEFT – CAUSE, PREVENTION, AND EFFECT

INTRODUCTION
A major growing problem within the United States is identity theft. Identity theft is the stealing and use of someone's personal information used primarily for monetary gain. I will elaborate on how identity theft occurs and I will describe what criminals can do with the information they obtain. I will also explain some of the prevention plans that companies have put into place to protect themselves and discuss how individuals can protect themselves as well. The Federal Trade Commission estimates that ten million Americans were victims of identity theft in 2002. 27.3 million Americans have been victims of some form of identity theft from 1998 to 2003. In 2004, merchandise
· Criminals can get a job or file for fraudulent tax returns. (Federal Trade Commission)

WHAT CONGRESS IS DOING TO STOP IDENTITY THEFT:
In 1998, Congress passed the Identity Theft and Assumption Deterrence Act which prohibits: "Knowingly transfer(ring) or us(ing), without lawful authority, a means of identification of another person with the intent to commit, or to aid and abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable state or local law".
Violating this act, in most cases, carries a maximum of fifteen years in prison, a fine, and the criminal must surrender any personal property used or intended to be used to commit the offense. Federal prosecutors work with agencies such as the Federal Bureau of Investigation, United States Secret Service, and the United States Postal Inspection Service to prosecute criminals.
This act is designed to "strengthen data protection and safeguards, require data breach notification, and further prevent identity theft" (S.1408). (Consumers Union)

WHAT COMPANIES ARE DOING TO PREVENT IDENTITY THEFT:
Consumers have the most control over protecting their personal information. Therefore, educating consumers is the most important aspect of a successful identity theft protection program. Companies must convince consumers that it is their own personal responsibility to be aware of the risks of identity theft and that consumers must be diligent in taking steps to protect their personal information. Companies have introduced many safeguards to prevent identity theft. The following are some services offered by companies to prevent identity theft:

IDTheftBlock is a service that provides identity theft monitoring and protection for its subscribed members. (San Filippo)

eStamp is a service provided by credit unions designed to make the consumers feel comfortable when using the Internet. This service provides each member a personalized watermark graphic so they know they are dealing with the real credit union. (San