Identity Theft | ASU Center For Problem-Oriented Policing

Identity Theft

Guide No. 25 (2004)

by Graeme R. Newman

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The Problem of Identity Theft

This guide addresses identity theft, describing the problem and reviewing factors that increase the risks of it.† It then identifies a series of questions to help you analyze your local problem. Finally, it reviews responses to the problem, and what is known about them from evaluative research and police practice.

† The term identity fraud is sometimes used to include the whole range of identity theft related crimes (Economic Crime Institute 2003).

Identity theft is a new crime, facilitated through established, underlying crimes such as forgery, counterfeiting, check and credit card fraud, computer fraud, impersonation, pickpocketing, and even terrorism. It became a federal crime in the United States in 1998, with the passage of the Identity Theft Assumption and Deterrence Act.1 This act identifies offenders as anyone who

…knowingly transfers or uses, without lawful authority, any name or number that may be used, alone or in conjunction with any other information, to identify a specific individual with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law.

A significant feature of identity theft is the offender's repeated victimization of a single person. This may include repeatedly using a stolen credit card, taking over a card account, or using stolen personal information to open new accounts.‡

‡ A victimization survey conducted by the Federal Trade Commission (FTC) found that 16 percent of victims whose credit cards were misused said the people responsible had also tried to "take over" the accounts by doing such things as changing the billing address or adding themselves to the card as an authorized user (Federal Trade Commission 2003a).[Full Text]

Congressional hearings on identity theft in the 1990s revealed that police generally did not regard those whose identities had been stolen as the true victims, since the credit card companies took the financial loss. In addition, the companies typically did not report their losses to local police (or to anyone else, for that matter). Studies also showed that victims rarely reported the loss or theft of a card to the police, since they believed that the card company would cover the loss. However, because the repeated use of a victim's identity caused serious disruption and emotional damage, more victims began to report the offense.

It is likely that your initial exposure to identity theft will be the request of a victim for a police report about the incident. Credit-reporting agencies now require that victims do so as part of the an "identity theft affidavit." that the victim submit a police report. Until recently, victims had a hard time getting such reports from the police. However, in response to growing media coverage and congressional testimony concerning identity theft, the International Association of Chiefs of Police (IACP) adopted a resolution in 2000 urging all police departments to provide incident reports and other assistance to identity theft victims.† It is also possible that people you have stopped or questioned have given you a fake ID—or a legitimate ID acquired with a false or forged document.

† "WHEREAS, reports of identity theft to local law enforcement agencies are often handled with the response 'please contact your credit card company,' and often no official report is created or maintained, causing great difficulty in accounting for and tracing these crimes, and leaving the public with the impression their local police department does not care.… RESOLVED, that the International Association of Chiefs of Police calls upon all law enforcement agencies in the United States to take more positive actions in recording all incidents of identity theft and referring the victims to the Federal Trade Commission…" (International Association of Chiefs of Police 2000).

It is difficult, though not impossible, for local police to influence some important factors that contribute to identity theft. These concern

• The ways that businesses and government agencies manage clients' personal information (for example, the procedures your motor vehicle department uses to authenticate driver's license applications)
• The policies and practices of financial institutions in dealing with fraud (for example, the ease with which they provide applicants with credit cards and convenience checks).

That said, this guide will help you determine what you can do to prevent identity theft and help victims in your jurisdiction.

Related Problems

The following problems are closely related to identity theft, but not specifically addressed in this guide:

• Financial crimes against the elderly.†
• Various telemarketing and Internet scams.2
• Theft of autos and auto parts aided by fraudulent documentation. As the effectiveness of car security has increased in recent years, making cars more difficult to steal, offenders have exploited weaknesses in documentation systems that link cars to their owners, including registration and owner's certificates, license plates, and vehicle identification numbers.3
• Thefts from autos. Offenders commonly target wallets and purses, and dispose of their contents for profit.
• Burglary. Burglaries of residences or businesses may reward offenders with a wide range of personal and business records that can be converted into loans or bank accounts, or provide access to existing accounts.
• Pickpocketing. Even if there is no credit card in a wallet, or even if the victim notifies the credit card issuer that a card has been stolen, the offender can use the victim's driver's license or other personal information to obtain a new card, or even establish credit with banks. Health insurance cards commonly list the holder's social security number as an identifier.
• Street robbery. Personal information and credit cards are an important target of muggers, who may sell such information and cards on the street.
• Counterfeiting and forgery. Offenders use the latest technologies to reproduce credit cards, checks, driver's licenses, passports, and other means of identification.
• Trafficking in human beings. Studies have found that stolen identities and false documentation are essential to successful international trafficking in prostitution and other illegal labor markets.4
• Check and card fraud. This is complex but very easy to commit once an offender has a victim's checks or credit cards. Retailers give only cursory attention to card users' identity (the signature), and on the Internet or telephone, there is no easy way to authenticate the user.