Continued from Part 2 of Identity Theft Plagues Consumers and Businesses…

But the time and frustration involved with contacting law enforcement officials, creditors and other institutions – and convincing them your identity has been stolen – takes an additional toll on already stressed-out individuals. Harmon says she spent five to six hours per day with the police, the credit reporting agencies and lenders for the first month after discovering her identity was stolen. The anger and frustration, she says, was nearly crippling.

“You instantly feel victimized. You are on your own,” says Harmon, explaining that creditors did not believe her at first, “Mainly because there are so many unscrupulous people trying to get out of making payments.”

ID Theft is not Just a Consumer Concern

ID theft is most often considered a consumer problem, and yet businesses themselves can suffer similar damage with the theft of a tax I.D. number, a fake Web site or fake letterhead. A thief impersonating a business might send out fake invoices to other businesses (using a controlled post office box) or letters to customers asking for sensitive data in the name of the legitimate business, author and identity theft expert John Lenardon explains.

“If I can pretend to be a company or send out 1,000 letters, all I need is a 2-3% return to get some good income coming in,” says Lenardon, based in Vancouver, British Columbia. He is the author of “Identity Theft Toolkit.”

Lenardon says the biggest problem for businesses, however, is internal staff. While some unscrupulous employees might steal data outright, he says, others are coerced or threatened – or even tricked – into giving up sensitive information.

Another concern is the theft of employees’ own identifications, prompting some businesses to offer identity theft coverage as a benefit. Considering the more than 100 hours Harmon (at the time a salesperson with a flexible schedule) spent on the phone just in the first month, some executives see this as a way to keep employees focused on their jobs. It takes between 200 and 600 hours to restore one’s identity after an I.D. theft, according to the FTC.

>>> Part 4 of Identity Theft Plagues Consumers & Businesses >>>