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Addressing identity theft. Read more

Working with Regulators and the Public to Address Identity Theft

During the past decade, identity theft was the fastest growing white collar crime in the United States. More than 10 million Americans fall victim to identity theft each year. Depending upon the source of information, identity theft costs US businesses between $3.2 billion and $50 billion annually.

The range is wide because of the tendency for financial institutions to under-report and because identity theft is perpetrated in two distinct manners, which makes accounting difficult. “True name” identity theft involves the misuse of a person’s identifying information to open new accounts. “Account takeover” involves the misuse of information relating to an existing account.

Today, despite widespread media coverage to the contrary, statistics published by the Federal Trade Commission (FTC), the Department of Justice (DOJ) and others show tht incidents of identity theft are dropping. This is good news for consumers, Experian, the financial services industry, public policy officials and law enforcement officials – all of whom have been at the forefront of the fight against identity theft.

The FTC’s 2007 report on identity theft showed that the incidence of identity theft decreased 19 percent between 2003 and 2006. The US Department of Justice reported an 11 percent decrease in identity theft complaints between 2004 and 2005.

Despite this welcome news, identity theft is still a big problem and there is much left to do to reign in this insidious crime. Identity theft is still the FTC’s top consumer complaint. Last year 8.1 million people became victims of identity theft.

Data loss is still a major problem in the U.S. and ongoing media attention continues to fuel consumer concern about identity theft. As a result, Experian expects to spend considerable time and resources responding to public policy proposals aimed at preventing identity theft.

The drop in identity theft statistics is in no small part due to leadership and initiatives undertaken by Experian and our allies in the financial services world.

For example, Experian has taken a leadership role in fashioning more than a dozen federal laws, and hundreds of State laws that form a baseline of consumer protection and that provide law enforcement and corporations tools to go after identity thieves.

Meanwhile, Experian business leaders have rolled out new commercial information products and services that help creditors detect and prevent identity theft and other forms of commercial fraud. These tools also help creditors authenticate consumers in remote channels such as over the Internet, by telephone and through direct mail.

Experian’s extensive efforts in the area of consumer financial literacy have also begun to show positive results. Since we began working to educate consumers on pro-active steps they can take to protect against identity theft such as placing fraud alerts and utilizing credit monitoring, consumers have become active participants in the monitoring of their personal financial information. Educating consumers on the importance of safeguarding their financial information is one of the most efficient and cost-effective tools we can utilize in preventing identity theft.

In conclusion, Experian can be proud that it has played a role in reducing the incidence of identity theft in the U.S. There is still much to do, but a strong foundation of consumer protection law and improved consumer financial literacy programs, combined with Experian’s innovative fraud detection and identity verification products and services, is having a positive effect.

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To use and protect data properly, respecting all the relevant laws, helping evolve industry guidelines and new legislation and ensuring a culture of compliance with high standards of integrity.



The importance of protecting data under Experian’s stewardship is embedded within our company’s culture. Protecting and using data properly is our most important responsibility. Our credibility as a business depends on it, and we work hard to maintain some of the highest standards in the industry. We continually review and improve our technical and physical security systems and provide full resources to the talented team we have leading this function to educate our people and to ensure they are aware of their roles and responsibilities.

Data and people are our two of our three key resources recognised in our central strategy. Every year we make a considerable investment in these key resources, and each year creates new challenges and opportunities for improvement. This year we have been involved in several major developments including independent advice through our helplines for UK consumers following the major data loss by HM Revenue and Customs (HMRC) and  the debate and legislative process behind the inclusion of positive data in consumer credit files in Brazil and in the US a proactive involvement in continually reviewing new and effective solutions that will offer ongoing support of third party risk management practices.

We’re also pleased to be able to report a decrease in the incidents of identity theft in the US and are proud of the role we’ve taken in leading initiatives, along with other allies in the financial services world, to fashion legislation to enable the police and corporations to take action against identity thieves. Identity theft is still a major problem, a top reported consumer complaint and a focus for media attention, so we anticipate continued investment of considerable time and resources in new tools, products, consumer education and support in the coming year.