, 2008-02-13
Americans lost over 45 billion dollars in identity-related fraud in 2007. Reports are so commonplace that we've actually become de-sensitized to them. "200,000 victims reported..." "500,000 victims reported..." Even figures into the millions don't seem to faze us anymore. And that is a Bad Thing.
Expand all |
Post comment
The author spends too much time trying to maintain the credit history linkage through the SSN. If there is a clear path from old SSN to new SSN it won't help anything.
Identity fraud occurs because industry wants an easy (read 'cheap') way to keep track of people without having to actually verify/authenticate them. SSN's are handy because everyone (in the US) gets one, they are almost impossible to change, and they are mostly unique.
Industry doesn't want to work at authenticating people. It would cost too much to confirm that charge x on credit card y actually was made by person p. Much easier to link everything on SSN and call it good.
The only way to combat it is to:
1.Forbid industry to utilize government issued identifiers.
2.Put the cost of identity-related fraud on the industry. You didn't take adequate care before you gave a mortgage or a $10,000 line of credit, then you eat it. (like you aren't liable for more than $50 in credit card fraud).
3. In those cases where someone's credit history is completely fubared due to illegal information exposure (oops, lost records on another 100,000 people) or other similar reason, make it easy to get a no penalty bankruptcy. New credit identifiers and all of your debt erases. Creditors woulds have to eat it or they could go after the party that causes the debacle.
[ reply ]
Link to this comment: http://www.securityfocus.com/comments/columns/465/34945#34945