Identity theft investigations

DEFINITION: Illegal appropriation of another person’s personal data for the purpose of gain or profit.

SIGNIFICANCE: According to the U.S. Department of Justice, identity theft has become one of the fastest-growing crimes in the United States. For law-enforcement personnel, the complexity of identity theft makes tracking, investigating, and prosecuting the perpetrators extremely difficult.

The Identity Theft and Assumption Deterrence Act of 1998 made it a federal crime when someone “knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes…a felony.” In simpler terms, identity theft occurs when individuals, without permission, transfer, take, or use for their own benefit the personal or financial information of others. After 1998, almost all U.S. states, following the federal government’s lead, enacted versions of identity theft legislation to deal with this growing problem. Most states constructed their laws hastily, however, and the results for investigation and prosecution of identity theft cases have been mediocre at best. By 2023, all fifty states had enacted laws regarding identity theft, and twenty-nine states offered restitution for identity theft cases, though, with increasing technology, identity theft continued to thrive.

Identity theft is not typically a stand-alone crime; rather, it is almost always a component of one or more types of fraud, such as credit card fraud, passport fraud, or counterfeiting. In fact, identity theft is typically categorized as a gateway crime because after individuals steal others’ information, this opens possibilities for more criminal activity to take place. Stolen personal information is often used to create new or false identities. Criminals use stolen personal information such as Social Security numbers to establish credit, run up debt, and take over existing financial accounts.

In establishing the criminal intent they must prove to convict the perpetrators of identity theft, prosecutors focus on the willful and purposeful taking or transferring of others’ information for the sole purpose of committing other crimes. In other words, they must show that the perpetrators were fully aware of their actions when they took the information and were cognizant that their actions were in direct violation of known law. Crimes of identity theft are becoming increasingly difficult to investigate and to prosecute because of the complexity and sophistication of the technologies that have become available.

Identity Thieves: Why, What, and How

The most common cause of identity theft in the United States is personal greed. Most identity thieves are motivated by the opportunity for quick credit or monetary gain. Technological advances, the internet, and social media have made it easy and profitable for identity thieves to operate and steal from multiple victims. Using the Internet, they can bring in thousands of dollars while taking minimal chances that they will be detected and investigated; the benefits to these criminals thus far outweigh the potential risks.

Identity thieves vary in the types of information they seek to steal, but very often, they are after some if not all of the following: Social Security numbers, driver’s license data, bank and other financial statement information, insurance records, tax return information, passport or other citizenship information, credit card numbers and corresponding account information, military records, and birth, marriage, and death records. They are also interested in any other forms of information, particularly financial information, that they might ultimately use for some sort of personal gain.

Identity thieves are known to use several common techniques. Some criminals go through trash cans and larger refuse receptacles to find copies of checks, credit card and bank statements, credit card solicitations, or other records that contain personal information; this is known as dumpster diving. They can use such information to assume the identities of those whose information they have stolen and then take control of active accounts or even establish new accounts in the victims’ names.

In a second technique, known as shoulder surfing, perpetrators watch over the shoulders of potential victims as these persons enter personal information into phones, computers, or automatic teller machines (ATMs). Identity thieves also sometimes watch and wait for people to leave credit card receipts on tables in restaurants or to throw receipts away near ATMs and banks. With their victims’ personal identification numbers (PINs) and other passwords, as well as their account information, the thieves can begin the process of posing as their victims and gaining access to their accounts.

One of the most innovative techniques used by identity thieves is the electronic method known as phishing. With the ever-growing use of the internet around the world, this technique has made the crime of identity theft a global concern. In phishing, criminals send out unsolicited e-mail messages (spam) advertising various products or services; the messages state that in order to receive the products or services advertised, the recipient needs to provide a credit card number as well as other personal information.

Prevalence and Scope of the Problem

The true prevalence of identity theft victimization in the United States is unknown. However, in 2021, roughly 23.9 million people in the United States reported that they had been a victim of identity theft in the previous twelve months. The overall prevalence of this crime is difficult to track, as the theft of a single identity is often the means by which criminals commit numerous other crimes. Most victims of identity theft, moreover, do not even come to realize they have been victimized until months after the fact. The U.S. Department of Justice has estimated that, on average, identity theft victims may not know that they have become victims for fourteen to sixteen months after their information has been stolen. Many, because of embarrassment or shame that they were victimized, will not file criminal complaints.

The federal government estimates that the crime of identity theft costs U.S. taxpayers close to fifty billion dollars per year. One of the principal credit-reporting bureaus , TransUnion, has reported receiving on average more than one thousand calls per day from known victims of identity theft. In fact, credit bureaus now estimate that two-thirds of all their consumer complaints relate to identity theft, more than 500,000 per year.

Investigation and Prosecution

On the federal level, violations of the 1998 Identity Theft and Assumption Deterrence Act and the 2004 Identity Theft Penalty Enhancement Act are investigated by several law enforcement agencies, including the Social Security Administration, the Federal Bureau of Investigation, the Secret Service, the Office of the Inspector General, the Immigration and Naturalization Service, and the U.S. Postal Inspection Service. These federal agencies usually tend to focus only on high-profile cases or on those cases involving very high dollar amounts, however. Most victims in the United States must rely on state and local authorities to assist them in restoring their good names. This can be quite problematic, as many local and state agencies lack sufficient personnel who have the training, education, and general skills needed to investigate and prosecute these complex offenses.

In the investigation of identity theft, one of the most difficult issues facing law enforcement agencies on all levels is that of jurisdiction—it is not always clear which agencies have the authority to pursue particular cases. In addition, law-enforcement personnel and prosecutors may be unfamiliar with the relevant state and federal statutes concerning identity theft. For these reasons, arrests and prosecutions for identity theft are rare, a fact that can be tremendously frustrating for victims.

Since 1999, the U.S. Department of Justice has spearheaded the Identity Theft Subcommittee of the Attorney General’s Council on White-Collar Crime. The subcommittee brings together members from federal, state, and local law enforcement and regulatory agencies on a monthly basis to share data about identity theft issues and to discuss new developments in an attempt to promote a united interagency front to help in combating this fast-growing crime. The Federal Trade Commission has also enacted an annual Identity Theft Awareness Week that focuses on educating communities about identity theft and ways to mitigate one’s risk. By 2024, with identity theft still a rampant social issue, the week’s programs had been expanded to include podcasts, webinars, and other education vehicles to discuss the physical, emotional, and psychological effects of identity theft.

Bibliography

Arnold, Tom. Internet Identity Theft: A Tragedy for Victims. Mountain View, Calif.: Software and Information Industry Association, 2000.

Collins, Judith M. Investigating Identity Theft: A Guide for Businesses, Law Enforcement, and Victims. Hoboken, N.J.: John Wiley & Sons, 2006.

“FTC Marks Identity Theft Awareness Week for 2023 on January 30-February 3.” Federal Trade Commission, 29 Jan 2023, www.ftc.gov/news-events/news/press-releases/2023/01/ftc-marks-identity-theft-awareness-week-2023-january-30-february-3. Accessed 15 Aug. 2024..

Hammond, Robert J., Jr. Identity Theft: How to Protect Your Most Valuable Asset. Franklin Lakes, N.J.: Career Press, 2003.

Harrell, Erika, et al. "Victims of Identity Theft, 2021." Bureau of Justice Statistics, Oct. 2023, bjs.ojp.gov/library/publications/victims-identity-theft-2021#:~:text=In%202021%2C%20about%2023.9%20million,credit%20card%20or%20bank%20account. Accessed 15 Aug. 2024.

Hayward, Claudia L., ed. Identity Theft. New York: Novinka Books, 2004.

Sullivan, Bob. Your Evil Twin: Behind the Identity Theft Epidemic. New York: John Wiley & Sons, 2004.

"2023 Identity Theft Facts and Statistics." IdentityTheft.org, /identitytheft.org/statistics/. Accessed 15 Aug. 2024.