Identity Theft: By the Numbers

“But I’m too young.”

“Only old people have to worry about that.”

    If you are in the 18-39 age range and find yourself responding to identity theft with these answers, then you, like many, are mistaken. Between 1998 and 2003 a study published by the Federal Trade Commission found that 27.3 million Americans had been the victims of identity theft. In 2005 alone, there were an estimated 10 million instances of identity theft. Most agencies project that this figure has grown in 2006 and 2007. While many ad campaigns have targeted senior citizens and claimed them as the most vulnerable demographic for identity theft, FTC studies show that the 18-39 range makes up 70% of all identity theft cases. Many possible solutions for identity theft have been offered, but two have established themselves above all: Credit Report Monitoring and Identity Scoring.

What’s the Difference: Credit Report Monitoring vs. Identity Scoring

    Credit Report Monitoring has been a staple in the fight against identity theft for over a decade. Credit scores are created by credit report monitoring agencies from a compilation of information sources relating to credit. Though this may be broad, it generally falls into three categories: the number of lines of credit, balances that exist on each line of credit, and if applicable, dates of collection activity. Credit scores do not include or reflect any personal activity that is not directly related to credit. As a result, identity theft that does not involve credit will not be monitored by a credit report monitoring agency, and will not appear on your credit report or affect your credit score. As the scope of credit report monitoring is very specific, little deviation occurs between different credit monitoring agencies and their credit scores.
    Identity scoring was developed as a system for marking and authenticating a person’s identity. Identity scores are created by identity scoring agencies using a wide range of consumer and personal data that determine a person’s authenticity. Identity scores can include personal records, government records, public records, corporate information, forecasted behavior patterns based upon observed information, self-evaluated behavior patterns, and credit records. Identity scoring information sets fall into three categories: public records, private records, and credit records. Summed up, this information produces an identity score. This identity score is capable of detecting possible identity theft when changes occur within the score itself. However, these identity scores vary between identity scoring agencies, and are subject to fluctuation when changes are made to private and public records, such as a job change or an arrest.

Problems: Unreliable Data and an Unreliable World

    Many of the problems associated with both credit report monitoring and identity scoring are in the accuracy of the information that is used and monitored. While credit report monitoring may be limited in its scope, and identity scoring may be inconsistent and mutable, both methods indicate and combat a much greater problem at hand: identity theft. As the number of identity theft cases and their overall damage has continued to grow, the need for personal protection has increased alongside it. While many consumers wait for the day when identity theft protection services like identity scoring and credit report monitoring are free, the fact remains that they will likely have to wait a very long time. Whether one has to pay a monthly or yearly premium for either credit report monitoring or identity scoring, the old adage remains true: an ounce of prevention is worth a pound of cure.

    Most identity theft protection services offer features that will monitor and detect identity thieves, but several also take proactive measures to deter and even prevent certain types of identity fraud. While no service can absolutely guarantee that your identity won’t be stolen, some do more to protect your identity than others. Check out a side-by-side comparison of all reviewed identity theft protection services, or jump straight to our top reviewed service, LifeLock.