Rusty Saber: Identity theft problem continues to grow rapidly

Joe McAdoo is former chairman of the communication department at Drury University.

Identity theft is a subject more serious than customary Rusty Saber fare. It is the lead story in the October issue of Consumer Reports, a magazine with a reputation for straight-talk consumer information and ratings of an endless array of products and services. That it delves so deeply into the potential dangers of identity theft speaks to the gravity of the subject.

Consumer Reports defines identity theft as fraudulent use of your name and identifying data by someone else to obtain merchandise or services. Any victim of identity theft can easily explain why the magazine took the time to focus on this serious criminal activity.

Since 1990, more than 33 million Americans have been victims. According to the Wall Street Journal, the Federal Trade Commission recorded 10 million Americans as victims of identity theft last year. WJS labeled identity theft as an epidemic costing individuals and companies $50 billion last year. It is our fastest growing financial crime.

Without doubt, identity theft is a downside to partially counter the myriad benefits of modern computer technology. The computer brings quality into our lives. One would be hard-pressed to find an area of everyday life not affected by computer technology; it is at the heart of the quality of life we enjoy. The downside: the computer makes identity theft relatively easy for felons with the know-how to commit it.

It is a scary 21st-century reality because so much information that should be private is floating about in cyberspace. The three basic ingredients thieves need to open accounts in your name, drain your bank accounts or charge items to your credit card are your full name, Social Security number and date of birth. More simply, a thief learning your credit card number and expiration date will be able to charge merchandise to your account. You and the company will share the loss.

Consumer Reports describes individuals fleeced by modern day electronic pickpockets; among them is a disabled woman who was arrested in front of her child because a thief had stolen personal information and passed checks in her name. Another victim was an assistant district attorney who leads seminars on, of all things, how to avoid identity theft. He had $28,000 charged to his accounts. A dishonest hotel clerk and his accomplices were the culprits who were unlucky enough to pick on the wrong guy. They were caught because they got greedy and charged items after the victim was on to them.

The Wall Street Journal reports the average victim spends 175 to 200 hours trying to recover from damages caused by identity theft. Huge bills, emptied bank accounts, ruined credit ratings and possibly criminal records that are nearly impossible to expunge can be the fallout. Consumer Reports offers some common sense tips to protect yourself. They include such things as checking credit card, banking and brokerage accounts immediately for discrepancies. Order copies of your annual credit rating from reporting agencies.

Its just common sense to refrain from giving important personal information to anyone unless you initiate the transaction or it is required for official documents. Dont carry items with such things as your Social Security number unless absolutely necessary; be certain that all such documents are securely stored at home. Consumer Reports recommends shredding documents containing personal data.

To aid in this venture the magazine rates various document shredders on the market. As would be expected, there are numerous tips for safeguarding your computer from outside data seekers.

A measure to protect consumers from identity theft is making its way through Congress. Hopefully, it will be strong enough to stamp out a despicable crime that can strike anyone at any time. Its a jungle out there; be careful.