Student and non-student perceptions and awareness of identity theft.

• Author: Winterdyk, John

Introduction

"I feel completely violated"--this phrase is commonly heard from those who have experienced identity theft and then had their personal information used to commit a fraudulent act. Why? Our identity is something that we all value. We are given a name at birth, we are assigned a Social Insurance Number (SIN), and we can readily obtain credit cards and bank cards. We are given a birth certificate with personal identifiers on it, and we have various forms of identification that contain our facial images (e.g., photo identification on our driver's licences, passports, and even student ID cards). (1) It is virtually impossible to engage in any social interactions without disclosing, at some level, some degree of who and/or what we are.

One telephone survey of 1,005 adult Canadians, conducted by Environics Research Group, found that almost 6 in 10 Canadians carry their SIN card, even though 81% of the respondents felt that losing their SIN card would put them at the greatest risk for identity theft (MasterCard 2006). The survey also round that most Canadians believe that losing their driver's licence or a credit card would put them at considerable risk as well (78% and 77% respectively). (2)

As noted on the website of the Office of the Privacy Commissioner of Canada, "Every year, thousands of people are victims of identity theft." Security breaches of both privately and publicly held databases that hold our personal information is increasingly common. The recent security breach of the "Winners" and "HomeSense" retail chains are just one example. One estimate is that "thousands of Canadian credit-card holders have been victimized by fraud after a security meltdown" at Winners in which their personal information was "stolen" and then used to commit fraudulent acts (Stewart 2007: A1). Credit and debit-card security breaches are not the only source of identity theft, as we now know that medical, personal insurance, and employment databases have also been targeted. Yet, according to Cherry and Legatos (2006), until we have been a victim of identity theft, most of us do not fully realize the possible financial and personal implications and consequences. Cherry's (2005) report indicates that more than 11,200 Canadians were victims of identity theft in 2005. In the same article, a crime-prevention officer notes that it can take up to four years to get one's affairs back in order, depending on how diligent people are in documenting the tracking of precautions they have taken to protect their identities. Although not based on scientific research, such anecdotal observations serve as useful insights worthy of closer scrutiny.

There is a growing body of academic and non-academic information on identity theft. A search of Canadian Newsstand through the ProQuest search engine for the term identity theft revealed that since 2000 there has been a marked increase in the number of articles that included some type of coverage of identity theft (see Table 1). A similar search of Canadian Business and Current Affairs (CBCA) Business produced a list of 533 documents for identity theft from 2002 to 2006 with a trend similar to that found among the newspapers.

Although much of the research on identity theft is limited to data from the United States, some Canadian research is emerging. Typically, the Canadian literature tends to focus more on strategies individuals can take to protect themselves, while the American research tends to offer more insight on what strategies are being used by law-enforcement agencies to detect and prevent identity theft. The majority of research on identity theft focuses on four key areas: the amount and financial impact of identity theft, techniques being used to perpetrate identity theft, groups at greatest risk of being victims of identity theft, and law-enforcement strategies to detect and prevent identity theft.

Amount of identity theft and its financial impact

Academic and business-related sources have noted that identity theft is on the rise in North America and represents a significant concern to law-enforcement agencies (Chua 2003; Henderson 2005; Mayer 2005; Saffran 2005; U.S. Department of Justice 2005; Ward 2005).

In 2006, PhoneBusters, which collects information on ID theft and other forms of fraud in Canada, reported that there were 7,778 victims of identity theft (Perkins 2007). This figure is down noticeably from the 12,409 incidents in 2006 and the 11,938 incidents in 2005. (3) Yet the value of reported loss for 2006 was significantly greater, at $16.2 million versus $8.6 million in value of reported loss in 2005. In addition, a 2005 telephone poll conducted by Ipsos Reid found that nearly 9%, or 2.7 million Canadians, have been victims of some type of identity theft at some point in their lives (Consumer Measures Committee 2005). In addition, 80% of the respondents said they consider identity theft to be a serious problem in Canada (38% a "very serious problem," 42% a "somewhat serious problem"). In 2006, the Royal Bank reported that in Canada alone there were in excess of 2 billion fraudulent credit card and debit card transactions in 2005 (Moneris Solutions ... 2006). Fraudulent business transactions made using credit cards and Internet shopping sites such as eBay, Plusone, Shoptoit.ca, and so on, have been growing at an ever-increasing rate.

Henderson (2005) reports identity theft as the fastest growing crime in North America, costing businesses millions of dollars each year. The Economist made a similar observation when it said identity theft is "one of the fastest growing white-collar crimes in the United States" (cited in Milne 2003: 391). The American Federal Trade Commission reported that in 2005, identity theft represented the most common complaint for the sixth straight year. A recent American survey found that 3% of the households in the United States had at "least one member of the household who had been the victim of identity theft during the previous 6 months" (Baum 2006: 8). Another American report by Consumer Sentinel, a complaint database maintained by the Federal Trade Commission (FTC), in 2005 reported that 37% of all complaints involved identity theft and that the age-group 18-29 accounted for the highest proportion of identity theft complaints by victims (29%) (FTC 2005). (4)

The problem of identity theft and related fraud is a growing global concern. Most are familiar with financial fraud scams such as the West African fraud letters (WAFL) and the "Nigerian scam" (also known as 419 fraud) (Criminal Intelligence Service Canada 2007; Gaudin 2005). In addition, terrorists use identity theft as a source of funding their terrorist operations (Dart 2005; Hoar 2001; O'Brien 2004), (5) and a Canadian study reported that identity fraud has been an integral part of smuggling undocumented migrants (Ronderos 2000). (6) The growing diversity in the forms and methods of identity is not unique to North America. For example, a study on identity theft in the United Kingdom reported that organized crime has become heavily involved in identity-theft schemes because of the immense profits to be made and the difficulty in detecting and apprehending offenders because ID thieves are operating under the cover of another person's identity (Cabinet Office 2002). The Home Office of London estimates that more than 100,000 people are victims of identity theft in the United Kingdom each year, costing the economy over 1.7 billion pounds annually (approximately CAN$3.5 billion) (Home Office Steering Committee 2006). According to VAonline.org, five agencies are dedicated to assisting and addressing identity theft and identity fraud in the United Kingdom. This compares to eight in Canada, and seventeen in the United States, and only one for all of Continental Europe--the European Anti-Fraud Office (Victim Assistance Online 2007).

Forms and methods of identity theft

Academic sources (see Allison, Schuck, and Lersch 2005; Higgens, Hughes, Ricketts, and Fell 2005; Milne 2003; Ronderos 2000; Towle 2004) and governmental agencies (see online information posted by Public Safety and Emergency Preparedness Canada) categorize identity theft into four basic types. A further distinction is commonly made between the primary methods of identity theft (e.g., physical or electronic).

The most common form of identity theft occurs when offenders wrongfully obtain--usually through such physical means as "borrowing" or stealing other people's identification information--to falsely misrepresent themselves when they are encountered by an authority. As Higgins et al. (2005: 165) note, this "type of fraud is a 'true' misrepresentation regarding the stopped person's real identity." Students might use this method when underage and trying to gain entry into a bar. A more serious misrepresentation might involve the use of another's identity in order to avoid detection when dealing with the police or some other aspect of the criminal justice system.

A second form of identity theft involves using another person's identifying information in order to illegally establish a new bank/ financial account in that person's name. The theft of one's identity can be obtained through both physical and/or electronic means. The theft is often the result of the offender obtaining relevant personal details from people through electronic techniques known as "spear phishing emails," "spoofing," "carding," or "phishing." (7) Common physical methods of obtaining information include "shoulder surfing" (standing nearby and watching as the victim enters his or her PIN and password, or provides personal details to a clerk, etc.), and "dumpster diving" (rummaging through garbage in dumpsters or garbage bins to obtain discarded personal information). Lombardi (2006) reports that phishing is a rapidly growing form of identity theft, accounting for about 20-25% of such incidents. According to the 2006 Consumer Reports State of the...