Continued from Part 1 of Identity Theft Plagues Consumers and Businesses…

Certified ID theft risk management specialist Joseph Campana works with small businesses to help prevent this type of crime, but he says it’s not even on the radar of many executives.

“Unfortunately, some businesses just don’t care. In fact I’ve had many businesses tell me that they’ll worry about it if it happens to them,” says Campana, based in Madison, Wisconsin.

I.D. Theft: How It Happens & How It Hurts

All it takes is a valid S.S. number, date of birth and a name for someone to steal an identity. But most victims don’t know it until after the identity has been used to obtain credit cards, post bail after an arrest, pay for medical procedures, secure a loan or apply for a job under someone else’s name. Sensitive information can be obtained in a number of ways, including Internet fraud, security breaches at businesses, telephone fraud and even dumpster diving.

Consumers usually find out about a theft either by surprises on their credit report or through the unexpected denial of credit, but only 30% of identity thefts are funneled through one’s credit report, according to one expert.

“If I was an illegal immigrant and used your S.S. number for a job application, that wouldn’t show up in your credit report. If I rent a house, get a cell phone or go to the hospital in your name, it doesn’t get reported in your credit report,” explains Justin Yurek, president of Denver-based identity-protection company ID Watchdog Inc.
The damage from identity theft goes way beyond financial loss, though. For example, if someone uses your identity to avert law enforcement, it could tarnish your criminal record. If your identity is used to charge your insurance carrier for cancer treatment, and you have no such condition, it could affect your ability to maintain coverage.

>>> Part 3 of Identity Theft Plagues Consumers & Businesses >>>