Nature and Ways of Combating Identity Thief - Research Paper Example

Nature and Ways of Combating Identity Thief Introduction One satirical cartoon shows a criminal stealing his victim’s identity. In a narrow corner, the “identity theft” violently takes off the face of his victim; the perpetrator then wears it on his own face. As a consequence, the victim becomes faceless while the criminal becomes his victim! This cartoon, like all other cartoons, is a hyperbole of how an identity theft transpires: faceless victim and “multiple-personality” perpetrator. Historically speaking, identity theft was on the rise during the 1980s. Nonetheless, it is still a major concern in our era despite its declining rate. The satirical cartoon above may appear funny, however, the popular Michelle Brown’s story proves how serious identity fraud is. Her life is never the same again after the traumatic event. She even exposed that the political system, at least during her time, failed to help her rise after the unsolicited nightmare. This essay examines the many and varied forms of fraud. Also, this paper explores the ways on how to avoid becoming a victim of fraudulent activities. Character Identity Theft Character identity theft or simply identity fraud is defined as the “misuse of personal identifying information to commit various types of financial fraud” (qtd. in Etzioni 108-109). The term “identity theft” is a misnomer because one’s identity cannot literally be stolen. Identity fraud is an appropriate term to describe the misuse of a stolen personal data. However, the phrase “identity theft” has become a popular usage rather than identity fraud. Identity theft is not a fraud at all even if someone stole or possessed other’s personal identifying information. A person cannot categorically be considered an identity theft merely for having the personal information of someone else. On the other hand, identity fraud occurs when someone steals other’s personal data and uses it for criminal acts. There must be an action taken for a crime such as identity fraud to actually happen. Unlike the cartoon’s exaggeration, identity thief is not literally taking off other’s face but rather stealing other’s personal data. The information that one fills up on the Biodata Form are the information that the identity thieves would likely steal. Identity thieves usually steal and misuse other person’s personal data, such as his or her name, address, driver’s license, credit cards, and the like (Etzioni 109; Jefson 373). These are basic personal identifying information that, when stolen and misused, leads to the victim’s nightmare. Michelle Brown’s story is a good example of character identity theft. The perpetrator blatantly misused Brown’s stolen identity. There are two apparent motives for committing fraudulent activities: financial and personal. Typically, the primary cause why acts of identity fraud happen is because perpetrators desire for material things. The motive is essentially an economic one. Identity thieves usually rent apartments, purchase cars, take out loans, and among others charged in the victim’s name (Etzioni 109). The economic nature of this sort of crime is in sharp contrast to the petty crimes motivated by one’s need for survival. What the identity thieves buy, as a product of misusing other’s identity, tells about their true intention. Obviously, apartments, cars, and even pornographic viewing are not basic human needs. One identity thief used other’s credit card to view the pornographic materials over the Net (Stafford 201). Identity thieves then commit fraudulent acts for luxury’s sake or personal gain. Another motivation for committing fraudulent activities is to clear one’s real name from criminal records. As it appears, identity thieves want to elude the negative effects or prejudices inherent in having a criminal background. In fact, some identity thieves give their stolen identity to the authorities when caught and arrested for their committed crimes (Etzioni 109). They misuse their victim’s identity in the hope of escaping from the punishment or verdict accorded to their criminal acts. Identity thieves resort to use the identities of the children and even the dead people for the reason that: (1) it is easy to steal their identities; and (2) nobody would notice it. First, children are vulnerable to the lies and deceptions of the adult. Another caricature shows how a superhero impersonator tried to persuade the child to get his father’s credit card. The adult impersonator reminded the child not to tell anyone about the plot to steal his father’s personal information. And second, no one will notice that the identity of a dead person has been stolen. The dead person cannot react or even know that his or her personal identifying information are being misused by a mischief criminal. Thus, the identity thieves can abuse the dead man’s identity for as long as life holds in them. Medical Identity Theft Medical identity theft is a sort of fraud committed via stealing, obtaining, and exploiting other’s insurance card or similar identifying information to receive medical services (Holmes 114). Similar to all crimes, action must take place to call it an act of medical identity theft. In contrast to other forms of fraud, this type of fraud is very dangerous because the perpetrator’s medical history could be confused with the original insurance cardholder’s. Unlike the character identity theft, the medical identity fraud does not only cost financial problem to the victim but it can also cost one’s life. Unquestionably, a victim of medical identity fraud losses thousands of dollars for the attorney’s fee due to the perpetrator’s misuse. In addition, this could ruin the victim’s credit rating (Holmes 114; Howard 2). Nonetheless, the mere fact that the health records of the two persons can be interchanged could lead to fatality or “disaster” (Howard 2). There are many ways how a perpetrator can obtain other’s medical card. For instance, by losing the victim’s wallet can perpetrators able to obtain his or her insurance card (Holmes 114). It is therefore recommended that once one’s insurance card is lost, he or she should automatically inform the authorities about the incident. Also, by exploiting the traditional method can criminals possess the properties of others: stealing. Medical identity fraud is a growing concern although it is not “making a headline” (Holmes 114). The reason for the occurrence of the medical identity theft is fundamentally economic. Different from the identity theft’s financial aspect, the medical ID theft is largely motivated by the strong need to survive. Evidently, personal interest or mere luxury is not the primary aim of the medical ID theft. One has to see also the social element pertaining to the characteristics or nature of the health care system in a given place and time. In the U.S., for example, universal health care is not promoted and pursued by the majority of the American citizens. As a result, quality health care services are only accessible to the rich. Meanwhile, the middle class and the unprivileged class are having difficulty to avail or access the benefits of the health care program. It is poverty or lack of financial ability that primarily drives the medical ID thieves to commit such dangerous crime. These perpetrators continue to steal and use other’s insurance card whether or not they are conscious of the risk involved. Credit Card Fraud Credit card fraud is a type of fraud that uses or misuses a credit card or any of its similar nature or mechanism as a fraudulent source of fund. Like the identity thief, illegal transactions must occur for credit card fraud to transpire. Such fraud actually happens when a seller, company, or any type of a merchant is “tricked” into releasing material goods or rendering services. Following the credit card theory, the merchant expects that the transaction between the “cardholder” and his or her business enterprise is legitimate: due payment will be provided. There are three ways to create, obtain, or steal credit cards: (1) due to lost credit cards; (2) counterfeit credit cards; and (3) credit cards issued by a bank but never received by the cardholders (Arend 91). Character identity thief can be synonymous to credit card fraud when the perpetrator finds and misuses a lost credit card owned by someone else. In this way, the credit card thief assumes the identity of the original cardholder. This thief then utilizes the lost credit card as a fraudulent source of fund for transactions with the merchants. On the other hand, cards that are issued by a bank but never received by the cardholders can be categorically considered a character identity fraud only if the cardholders’ identities are real or non-fictitious. The main difference between the identity fraud and the credit card fraud is that the former steals other’s personal identifying information while the latter steals the merchant’s resources and services. Perpetrator of credit card fraud does not necessarily steal other real people’s identity but rather assumes a fictitious identity as a prelude to trick the merchants. A New Jersey man invented and obtained 1,000 credit cards under 300 names of unreal or fictitious people (Etzioni 110). Counterfeit cards as they are called rose 167% in the year 1990 (Arend 91). There are two chief motives for perpetrators to commit credit card fraud: (1) personal gratification; and (2) avoidance of payment. In the 1980s, people view credit cards as a “luxury payment method” (Scott 567). Presumably, this is one of the major reasons why there has been a growing credit card debt. The middle class people, for instance, tend to purchase expensive merchandises and services that are beyond their economic capacity. Like everyone else, perpetrators are motivated to commit credit card fraud due to the perception credited to credit card holding. Credit card per se offers greater possibilities and opportunities in contrast to paper money. In the Internet Age, credit cards have become an essential means to buy things or services sold in the Net (Lunt 75). Undoubtedly, the World Wide Web is a “fertile field” for fraud-related crimes (Orr 59). From books to clothes, and from hardware to software, only credit card acts as a bridge or an “easy way” for a customer to own, hold, or enjoy any selected items he or she desires (Valentine 39). Thus, the temptation of creating or stealing a credit card is very strong for weak humans to resist. And to steal a cardholder’s number is easy -- hacking via the person’s PC (Lunt 75). Moreover, credit card numbers can be stolen via: lost laptops, lost storage devices, misplaced flash drives, printed accidentally, and discarded PC (Prosch 58). Eluding the payment from credit card usage is also a motive why fraudulent people commit such crime. Perpetrators are not worried on how much money they have spent in purchasing some things because they are not the ones who have to pay for those things. He or she is not liable to pay an equivalent amount of money to its creditors since the name inscribed in the credit card is not the perpetrator’s. Things To Do There are eight practical steps in order to stop becoming a victim of fraudulent crimes (“8 Things”). The first to thing to do is to dial and call using the phone number of any of the three main credit reporting agencies to place a fraud alert; these reporting agencies are Equifax, Experian, and TransUnion. It is not necessary to call all the three credit reporting agencies since the agency that one has called over the phone will inform the rest of the agencies about the matter. In addition, the agency will provide the victim a copy of his or her credit report for review purposes (“8 Things”). Second, contact and notify one’s creditor about the fraudulent activity, if the perpetrator was able to successfully open a new account. The creditor will automatically close the account and most likely will require the victim to fill out a fraud affidavit (“8 Things”). Third, for the accounts that were compromised, contact and inform the creditor that one’s identity has been stolen (“8 Things”). Fourth, contact and alert one’s local police about the fraud under question. Fifth, file a complaint with the Federal Trade Commission. Sixth, change all the passwords that one uses online. Seventh, visit the Secretary of State or similar government agency if one believes that an impersonator is using one’s driver’s license. And eight, keep records accurately and safely (“8 Things”). Conclusion Stealing other’s identity is definitely a crime: one’s privacy is invaded. Identity theft does not merely disrupt the society in general but also upsets the individual person in particular. In stealing identities, billions of dollars are wasted and lives are torn apart. But more than anything else, human lives are compromised because of the perpetrator’s ineptitude and lack of concern. Fortunately, it has been recorded that identity fraud is decreasing in number and frequency due to the government’s political will and the ordinary people’s involvement. Perhaps Michelle Brown’s public testimony has greatly contributed to the decline of fraud-related crimes. Indeed, fraud in whatever form destroys the lives of the ordinary people. It disturbs the emotional and mental tranquility of the person. Perpetrators may have motives on their own; however, its aftermath is catastrophic to human lives. By and large, identity theft, credit card fraud, and most especially, medical identity theft are crimes not worth justifiable. Works Cited “8 Things You Must Do If Your Identity Is Stolen.” Creditpro.wordpress.com. Credit Score Tips and Advice, 11 Feb. 2007. Web. 2 Sept. 2010. Arend, Mark. “New Card Fraud Weapons Emerge.” ABA Banking Journal 85.9 (1993): 91+. Print. Etzioni, Amitai. The Limits of Privacy. New York: Basic Books, 1999. Print. Holmes, Tamara E. “Patient or Perpetrator? Protect Yourself from Medical Identity Theft.” Black Enterprise Aug. 2008: 114. Print. Howard, Lee Bowman Scripps. “Protect Your Medical Identity from Theft.” Daily Herald 2 Nov. 2009: 2. Print. Jefson, Cristy A. “Identity Theft and Consumer Health Education: A Case Study Teaching the Skill of Decision Making.” Journal of School Health 77.7 (2007): 373+. Print. Lunt, Penny. “Will SET Kill Card Fraud on the Internet.” ABA Banking Journal 88.4 (1996): 75. Print. Orr, Bill. “Will E-Commerce Reverse Card Fraud Trend?” ABA Banking Journal 92.4 (2000): 59. Print. Prosch, Marilyn. “Preventing Identity Theft throughout the data Life Cycle.” Journal of Accountancy 207.1 (2009): 58+. Print. Scott, Robert H. III. “Credit card Use and Abuse: A Veblenian Analysis.” Journal of Economic Issues 41.2 (2007): 567+. Print. Stafford, Marla Royne. “Identity Theft: laws, Crimes, and Victims.” Journal of Consumer Affairs 38.2 (2004): 201+. Print. Valentine, Lisa. “The Fraudsters' Playground: The Web is Becoming more Bane than Boon as Online Credit Card Fraud Soars. Several New Initiatives may Cut the Losses.” ABA Banking Journal 95.8 (2003): 39+. Print. Read More