Identity theft: do definitions still matter?

Despite a statutory definition of identity theft, there is a continuing debate on whether differences among the financial frauds associated with identity theft warrant further distinction and treatment, not only by lenders and financial institutions but also by consumers and regulatory and law enforcement agencies. In this Discussion Paper, Julia S. Cheney examines four types of financial fraud – fictitious identity fraud, payment card fraud, account takeover fraud, and true name fraud – that fall under the legal term identity theft to better understand how criminal behavior patterns, risks for consumers and lenders, and mitigation strategies vary depending upon the sort of data stolen, the type of account compromised, and the opportunity for financial gain. Three areas key to developing effective solutions that, in the view of the author, would benefit from further definitional delineations are identified: measuring the success (or failure) of efforts to fight this crime, educating consumers about the risks and responses to this crime, and coordinating mitigation strategies across stakeholders and geographies.Identity theft ; Fraud ; Credit cards

Identity theft

Identity theft

Risks of identity theft: Can the market protect the payment system?

Identity theft has been a feature of financial markets for as long as alternatives have existed to cash transactions. But identity theft has recently occurred on a much larger scale. Data breaches often involve the apparent loss or acknowledged theft of the personal identifying information of thousands--or millions--of people. ; Identity theft poses risks, not only to individuals, but to the integrity and efficiency of the payment system--the policies, procedures, and technology that transfer information for authenticating and settling payments among participants. Identity theft can cause a loss of confidence in the security of certain payment methods and an unwillingness to use them. Markets can cease operating or switch to less efficient payment methods. Either represents a loss of efficiency for the economy. ; Schreft looks at the nature of identity theft today and the factors underlying its mounting risks. She also explores whether markets are able to limit the risks identity theft poses to the payment system.Identity theft ; Payment systems

Identity theft: a pernicious and costly fraud

On October 3, 2003, the Payment Cards Center of the Federal Reserve Bank of Philadelphia sponsored a workshop on identity theft to examine its growing impact on participants in our payments system. Avivah Litan, vice president and research director of financial services for Gartner Inc., led the workshop. The discussion began and this paper follows with a broad study of identity theft, at times compared with traditional payment fraud, and continues with an evaluation of its overall risk to consumers, merchants, and credit providers. The paper compares the incentives each such party has to address identity theft in concert with current market response to the crime. Finally, the paper concludes by posing several questions for further study. This paper supplements material from Litan’s presentation with additional research on the crime of identity theft.Fraud ; Identity theft

Identity theft hits the UK

Bruce Grant-Braham examines the latest hospitality information technology application

A Holistic View of Identity Theft Tax Refund Fraud

This thesis attempts to explain what identity theft tax refund fraud is and how the issue has developed over the years. It presents a holistic, historic view of the problem as well as how it has been addressed. It primarily relies on reports from the Internal Revenue Service (IRS), Treasury Inspector General for Tax Administration (TIGTA), Government Accountability Office (GAO) and National Taxpayer Advocate (NTA) in its assessment. It does not examine foreign tax administrations’ methods of dealing with identity theft refund fraud or the extent of the issue in other principalities, and therefore this is an area in need of further research. This thesis does not attempt to make an argument for the efficacy of funding for the IRS either, which is an area that could be further studied. It also does not deal with employment-related identity fraud, which some relate to identity theft refund fraud

What you should know about identity theft

Identity theft—appropriating someone else’s identity for illicit gain—is the fastest-growing financial crime. It can cause considerable financial losses, and cleaning up a trashed credit history can be time consuming and frustrating. This Economic Commentary examines the identity theft phenomenon—how it works, how lawmakers, regulators, and financial institutions are combating it, and what consumers can do to protect themselves.Consumer protection

A breach of trust : protecting privacy in the age of electronic payments

Identity theft ; Privacy

Data breaches and identity theft

This paper presents a monetary-theoretic model to study the implications of networks' collection of personal identifying data and data security on each other's incidence and costs of identity theft. To facilitate trade, agents join clubs (networks) that compile and secure data. Too much data collection and too little security arise in equilibrium with noncooperative networks compared with the efficient allocation. A number of potential remedies are analyzed: mandated limits on the amount of data collected, mandated security levels, reallocations of data-breach costs, and data sharing through a merger of the networks.

Data security, privacy, and identity theft: The economics behind the policy debates

Privacy ; Identity theft ; Data protection