Essay on Computer Literacy: Identity Theft
Today identity theft is a growing problem in the USA. Although identity theft is a relatively new form of crime, in the last ten years, the incidents of identity theft as well as the cost to the U.S. economy have been increased dramatically. Identity theft is the unauthorized use of personal information, including credit information. This information is used in different ways, such as “securing credit, making purchases, obtaining medical services, getting jobs, or evading criminal investigation” (Hanel 9). Under the Fair Credit Reporting Act, this form of crime is defined as “the use or attempted used of an account or identifying information without the owners’ permission” (Fisher & Lab 469). As a result of identity theft, a number of problems can arise, including serious banking problems, paying higher interest rates to the banks, financial losses, etc. Identity theft is a crime and it should be prosecuted.
There are several types of identity theft, such as financial identity theft, medical identity theft, immigration identity theft, and some other forms. In financial identity theft, thieves use personal information of victims in order to use the existing account of the victim, or to open a new account using the victim’s name. The statistics show that “60% of victims reported that the thieves used their existing credit cards for committing crimes, while 17 % of victims reported that the thieves opened new accounts in their names”, according to Hanel (27). In medical identity theft, the thieves use victims’ personal information for medical purposes, such as obtaining health services, buying prescription drugs and getting patient’s insurance information “to submit false bills to the insurance company” (Hanel 28). As most hospitals and clinics have adopted policies that require the use of electronic medical records, identity thefts can occur practically in any medical facility. In immigration identity theft, the identities are stolen by illegal immigrants who want to be employed under a different name. In many cases, “people who come to the USA without proper documentation have used alternative identities to secure employment,” according to Hanel (32). It is known that many employers are interested in the background information about their employees. In this case, the thieves use not only the victim’s name, but also his/her Social Security Number. In addition, identity thieves use the victims’ names to obtain disaster benefits. It is known that today the U.S. Government provides financial assistance for victims of natural disasters, including tornados, hurricanes and floods. Besides the above mentioned facts, identity thefts are used for funding terrorist activities. For example, terrorists may use identity theft “to obtain employment in someone else’s name and to gain access to secure areas” (Hanel 39).
According to the statistical data, “in the USA, identity theft resulted in corporate and consumer losses of $56 billion in 2005, with up to 35% of unknown identity thefts caused by corporate data breaches” (Romanosky et al. 256). That is why many states have adopted data breach disclosure laws which require business organizations to notify their clients of the loss or theft of their personal information. It is expected that the laws will reduce identity theft caused by data breaches. These laws and regulations are focused on “documenting the theft, dealing with credit reporting companies, dealing with creditors, debt collectors, and merchants; and limiting financial losses caused by the theft of your identity” (Identity Theft Victim’s Statement of Rights, 2012).
In addition, it is known that many criminals are attracted to the lower risk and higher rewards of the crimes based on identity theft. As the federal law treats identity theft as a crime against property, the penalties for the property crimes are less severe than the penalties for the crimes against a person. In many cases, the law enforcement agencies pay more attention to such high-profile crimes as homicide, rape and robbery than to identity crimes.
The best way to prevent identity theft is to be more careful with personal information. Today thieves can not only steal a wallet with credit cards and get the victim’s personal information online (through e-mails, websites), but also through such transactions as online banking, online purchases, etc. Identity theft can be prevented by practicing the following tactics: share identity information only when necessary, do not carry unnecessary personal information in wallet, secure mailbox and all information on personal computer, keep financial records and medical records in a secure location, avoid the use of non-necessary identity information, etc. (Fisher & Lab 470).
CONCLUSION
Identity theft can be defined as a serious crime because it causes financial and moral damage. Today law enforcement agencies, both federal and non-federal, are working together to develop and implement the appropriate strategies for the prosecution of identity thieves. In addition, the law enforcement agencies have developed effective education programs that help the U.S. citizens to prevent identity theft. However, to stop identity theft, the joint actions of law enforcement and the public should be taken. These actions should be based on cooperation and effective communication.
