Thursday, February 23, 2006

Schwarzenegger Summit on Identity Theft

Governor Arnold Schwarzenegger Opened Second Annual Summit to Fight Identity Theft before representatives of law enforcement, the financial services industry, consumer groups and state and local government.
Nearly 10 million people in the United States are victims of identity theft each year - more than one million of them are Californians. In 2005, this crime cost businesses and financial institutions more than $57 million nationwide.
Note the statistics on the cost to BUSINESSES but no mention of the cost to CONSUMERS in lost dollars, time to fix credit histories and lost time from work which likely amounts to more in dollar amounts than that cost to financial institutions. ChoicePoint was fined $15 million for it's role in the theft of financial data to criminals (and probably made back a good portion of that in fees paid by those crooks to access the data).

Just one of the criminals convicted in the data thefts involved was suspected of $65 million haul in just his small portion of resulting identity thefts. Business and financial institutions will eat a portion of that loss, but data broker ChoicePoint -the original source of the losses - should see larger losses than the financial institutions. Insurance carriers of affected credit cards and other identity theft targets will probably bear the brunt of the costs.

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posted by RealitySEO at 3:28 PM


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