Old-School Identity Theft

By Barbara Kiviat

The term identity theft may conjure up notions of cyberhacks and Internet scams, but most ID fraud, it turns out, starts off-line. Last year 9.3 million Americans were victims of identity fraud, a problem that cost consumers and businesses some $52 billion. But fewer than 12% of cases start online, according to a survey by Javelin Strategy & Research and the Better Business Bureau. Most ID theft has an old-fashioned beginning: a lost wallet, stolen mail or a friend or relative with easy access to financial information. Another finding: People who monitor accounts online catch fraud earlier and minimize the damage. While the average loss for fraud detected by paper statements was $4,543, it was just $551 for such crimes discovered online. --By Barbara Kiviat