Identity Thieves Can Be Patient

By KEVIN DEMARRAIS

Identity theft is rampant.

Or is it?

Despite being bombarded with tales of major security breaches, often involving files containing personal information on millions of consumers, rarely, if ever, do we hear of widespread use of that purloined data.

"There's no one who can tell you," Federal Trade Commission spokeswoman Claudia Bourne Farrell told me.

Even so, any breach of computer systems containing our personal information, even if no one attempts to use that data, can be a pain. That's because credit card companies have to issue new cards with each breach, forcing consumers to clean up their mess.

Miss one, as happened to me, and you can have problems.

Back in August I got a replacement Visa card because the issuer's accounts had been compromised by a security breach involving an unnamed business.

But it was up to me to notify all the merchants who bill directly to the card, such as E-ZPass and Verizon, and to update various Internet shopping sites.

But I overlooked my cellphone carrier, and my monthly charge was rejected because they had the wrong account number. It was easy enough to clear up, but I almost had my service cut just before I left for vacation.

The experience taught me to maintain an up-to-date list, including account numbers and phone numbers or Internet sites I can use to update information quickly.

It also made me wonder if fear of identity theft -- some of it generated by credit reporting and monitoring firms that have found a bonanza in selling protection -- is really justified.

Much of what we hear is anecdotal, and it's easy to discount the growing numbers -- reportedly, identity theft was up 22 percent last year -- as the result of state and federal regulators doing a better reporting job. The numbers also reflect stretching the definition of identity theft to include crimes that might have been classified as simple theft in years past.

But that doesn't mean we should let down our guard, said Adam Levin, a former director of the New Jersey Division of Consumer Affairs and co-founder and chairman of Identity Theft 911, which provides identity management, identity theft resolution and data breach services.

Crooks are increasingly sophisticated and patient, Levin said. "Since 2005, there have been at least 275 million files that have been illegally accessed."

The cost in direct losses and expenses is $50 billion to $60 billion a year, he said, most of it incurred by card issuers. The cost to consumers is measured more in time and frustration.

"People involved in identity theft are sophisticated, patient people," Levin said. They're willing to wait for a big payday, for people to become complacent and let their guard down.

When you hear that there is no evidence yet that a security breach led to identity theft, the operative word is "yet," he said. "They can afford to wait."

Unfortunately, consumers make the job easier by freely providing the kinds of vital personal information the crooks seek through online social networking sites, he said. "They can't give it away fast enough."

Look at Facebook, and you'll find birthdays. Online quizzes often reveal the name of a first pet, a favorite band, or high school information, info that is often used in security questions on various Web sites.

That information fed into the sophisticated programs crooks use could unlock your files and make you the next victim.

"Nobody really knows how bad it is," Levin says.

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Today is the 18th annual Action Against Hunger, and we hope you can be as generous today as you were in responding in August to our challenge to share your homestead rebate with the Center for Food Action.

I challenged those of us getting a rebate merely because we had reached our 65th birthday, while more-needy folks were getting nothing, to donate their checks to help feed our neighbors.

The final tally: $8,603 from 18 donors, an average of $478.

"Those who responded made a significant impact on [our] ability to help the most vulnerable of our neighbors during these difficult times," Patricia Espy, the CFA's executive director, said.

"Thanks to their generosity, many people have been able to put food on their tables."

But the number of people struggling financially grows, and "any gains in the economy will most likely reach our poorest neighbors last," Espy said.

You can donate food or money at any of the collection sites around the region. Details are in today's paper or online at ActionAgainstHunger.com.

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Read "Your Money's Worth" blog at njmg.typepad.com/moneyblog. Highlights appear in Wednesday's Record. E-mail: demarrais@northjer sey.com

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