NCJ Number
194631
Date Published
2002
Length
75 pages
Annotation
The objective of this report is to provide information on four main areas of concern regarding identity theft: it's prevalence, it's cost to the financial services industry, it's cost to victims, and it's cost to the Federal criminal justice system.
Abstract
According to this report, the prevalence and cost of identity theft appear to be increasing. In order to obtain data concerning the prevalence of this offense, researchers contacted several entities to compile appropriate statistics. The three national consumer reporting agencies were contacted during March 2001 and January 2002, as were the Federal Trade Commission, the Social Security Administration's Office of the Inspector General, the Executive Office for the U.S. Attorneys, the Federal Bureau of Investigation, the Internal Revenue Service, the Secret Service, the Financial Crimes Enforcement Network, and the Postal Inspection Service. Researchers found that although there were no comprehensive statistics on the prevalence of identity theft, the crime does seem to be increasing based on the statistical information regarding white-collar crimes, consumer complaints, and law enforcement investigations and prosecutions. The results of this study concerning the cost of identity theft to the financial services industry are more difficult to quantify. The researchers concentrated on three categories in compiling their data: direct fraud losses, operating costs of fraud departments, and consumer confidence in online commerce. Some indicators suggest that the cost is increasing while other indicators suggest that researchers cannot conclude that the cost is either increasing or decreasing. The reason for this ambiguity is that precise statistical measurements of identity theft are not currently available. The third component of this research concerns the cost to victims of identity theft. Researchers relied on statistical information from the Federal Trade Commission to reach conclusions concerning harm to victims. They found the costs to victims include the nonmonetary harm of denial of financial services, time lost to resolve problems, and criminal investigation, arrest, or conviction. Victims also suffered monetarily; out of the 2,633 victims reporting out-of-pocket expenses, 207 lost above $5,000 while 203 lost above $10,000. The final component of this research concerns the cost to the Federal criminal justice system. Researchers obtained estimates of costs associated with investigations, prosecutions, incarcerations, and community supervision. Although figures specific to identity theft are not available, estimates indicate the cost of an investigation totals $15,000-$20,000, a prosecution costs approximately $11,443, an incarceration totals approximately $17,403 per inmate annually, and community supervision totals $2,900 annually per offender. Tables, appendices