Online Fraud And Identity Theft

Published Date: 02 Nov 2017

Identity theft is one of the fastest growing crimes statistically according to the Federal Trade Commission. With all the advancing in technology today, there is an estimate of 9 million Americans that are victims of identity theft each year. Furthermore, The Federal Trade Commission said law enforcement officials and other agencies had received millions complaints of identity theft last year. This research paper examines the topic of identity theft as well as technology and the relation between them.

Keywords: Identity theft, Internet fraud, cybercrime

Introduction

Identity theft is one of the fastest growing crimes statistically according to the Federal Trade Commission. Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain. The FTC estimates that as many as 9 million Americans have their identities stolen each year. According to PRnewswire, the number of identity fraud victims increased by 12% in 2009 and the amount of fraud increased by 12.5%. This is the highest rate of increase in the seven years that the U.S. has been issued. Furthermore, The Federal Trade Commission said law enforcement officials and other agencies had received a total of 8.1 million complaints last year, which was a 28 percent increase from 2010, according to Reuters. According to 10spot, Identity theft has become a major issue in recent years, costing Americans over $52 billion per year. (Jolie) The cost to businesses worldwide adds up to a staggering $221 billion each year. Identity theft is a serious crime whereby criminals impersonate individuals, usually for financial gain. In today's society, we live in a very technological society so everyone is online almost all the time. In the Internet world, we in most cases need to reveal personal bits of information about yourself, such as social security numbers, name, address, phone numbers, and even banking and credit card information (Beal). Internet identity theft is a part of identity theft and it can be much worse than common identity theft. The Internet is providing new ways for people to steal your personal information and to commit fraud (Beal). Online identity theft or fraud is on the rise, affecting more lives and costing individuals and businesses more money year after year. This paper will present the online identity theft problem and how to protect your identity from thief and impostor.

Research Questions

This research will attempt to answer the following questions:

1- What the useful information that an impostor needs to steal someone’s identity?

2- Is the Internet become such an easy way for staling identities?

Literature Review

The FBI, Federal Trade Commission (FTC) has jointly issued a warning on how the growing ranks of Internet crooks are using new ways to steal your identity (Longley). Internet fraud has become a major issue due to the ever increasing population of internet users, because the internet is such an easy solution to fast sufficient services readily available for busy lives that is why most of us are now dependent on the internet in some shape or form and each time we use the internet we input data that are related to use from our name, address and even bank details with the assurance that the site is safe and trustworthy, but this is not always the case because the security system implemented like all things in this world has weaknesses.

In these days, we live in a world where information is the currency, and money moves at the speed of light and identities are as easy to steal as bicycles (Eds., 2005). The growing use of computers has thrust us into a virtual world where we have a false sense of security. No longer do we stand in line at the bank. Direct Deposit and online banking has replaced this chore and allowed us to complete this task from the comfort of our home on our personal computer. No longer do we have to go to the stores to make our purchases. Renting movies, ordering flowers, or even ordering diner, consumers can purchase virtually anything over the internet (Internet Retailing, 2007). People sit behind their computers and feel safe within cyberspace. They trust that when they order something or bank online that they are safer than if they were out in public. But don’t be fooled, criminals live in cyberspace as well. Identity thieves thrive on the unsuspecting and if you do not keep your personal information safe, you are almost asking to be robbed. Social Security numbers, credit card numbers, ATM personal identification numbers, date of birth, mother’s maiden name, are only a few pieces of information that a criminal needs to become you.

People that are using the internet have to be very careful about this kind of criminalities. Identity theft can occur when the user is using or typing his/her account and at the same time, there is someone spying or hacking the user computer system. This case usually happens on bank site, in order to get the user personal data or credit card data and get money from the user account (Community Safety 2009). Internet auction, phishing, adware, spyware, and spamming are the exemplars of fraudulent online threats. These online threats are also known as computer crimes, because typically, these kinds of criminalities are happened using computer device through computer network (internet) (Computer crimes 2009). "Online crime is constantly evolving, and the fraudsters do not discriminate against any organization or person. It is working day and night to steal identities, online credentials, credit card information, or any other information that fraudsters can efficiently monetize" (RSA 2009).

Methodology

In methodology section, generally the study will take place in Hawaii State. The data will be collected by using online survey focusing on adult people who have knowledge in security skills and have information technology skills. Also, I will try to find the people who their identities have been stolen through the internet and do survey with them, asking them several questions to find out what they have done that made them such victims. Furthermore, I will do manual survey with employees who work at banks and find out how many issues of identities theft they got, and how they deal with such a identity theft thing.

Summary

In summary, Identity theft is the fastest growing and most popular crime in the United States. Identity theft has a tremendous impact on the victims. Identity theft is one of the most difficult crimes to track and prove which means that most identity thieves are neither caught nor prosecuted. There are millions of Americans that have had their identity stolen. Identity theft has cost billions to both consumers and businesses, and society as a whole. This is how identity theft has become big problem in the United States.