Northwestern University Newsfeed

February 23, 2005

MATWYSHYN: Fraud that’s been reported to the FTC is currently topping $500 million a year, and I think the last identity theft statistics that I saw were something like over nine million US residents were victimized by identity theft in 2004.

Matwyshyn says data vulnerability often leads to ID theft…and there are two common ways information is taken…

MATWYSHYN: One is corporate entities like ChoicePoint who arguably may not have adequate security measures in place to prevent employees or unauthorized individuals from accessing information that they shouldn’t have. The other half of it is consumer behavior…for example consumers who don’t have good password practices on websites.

Matwyshyn says most people don’t know they are victims of identity theft until the damage is already done…

MATWYSHYN: Consumers don’t even realize they’ve been victimized until they are at the point of getting a credit report pulled by a third party that they are trying to do business with. For example, if they are trying to get a mortgage.

Matwyshyn says efforts are underway by Congress to prevent identity theft…

MATWYSHYN: Congress has started passing laws like the Gramm-Leach-Bliley Act which regulates financial institutions and the way they can handle consumer information. And the Health Insurance Portability and Accountability Act which governs the handling of medical information.

Matwyshyn gives advice for those who think they may be victims of ID theft…

MATWYSHYN: One step is to contact all the major credit reporting agencies and certain states have laws that allow consumers to freeze people from pulling their credit reports. By putting a freeze on pulling your credit report, in effect you can foil an identity thief that is trying to take out that second mortgage on your home.