Identity Theft: #1 FTC Complaint in 2009

If you thought identity theft was rare, you were wrong. Statistics from law agencies like the Federal Trade Commission show that identity theft happens quite often. In fact, in 2009 the agency received more complaints related to identity theft and fraud than any other crime or consumer service.

Complaints on fraud and identity theft

Each year the Consumer Sentinel Network (CSN) publishes statistics about consumer complaints from agencies like the FTC and the Better Business Bureau. This year, the CSN says it received more than 1.3 million complaints in 2009 with the vast majority of complaints related to fraud and identity theft – 54% of complaints were fraud-related and 21% of complaints were identity theft-related. In second and third place were debt collector complaints (9%) and internet service complaints (6%), respectively.

One of the biggest problems with fraud is the cost to consumers. In 2009, consumers say they were scammed out of more than $1.7 billion. The median amount paid was $399. That means a lot of people were scammed out of just a little money each.

Of these fraud cases, credit card fraud ranked highest. Most people fell prey to email scams (48%) while others were tricked by an internet site (12%) or a phone scam (10%). These were most likely phishing scams where a scammer poses as a legitimate business and tricks you into buying something or giving out your credit card information, or sometimes both.

Identity theft statistics

Here's the breakdown of what, specifically, consumers are complaining to the FTC about when it comes to identity theft:

• 17% - credit card fraud
• 16% - government documents or benefits fraud
• 15% - phone or utility fraud
• 13% - employment fraud
• 10% - bank fraud
• 4% - loan fraud

Highest complaints by state

• Nevada, Colorado and New Hamsphire had the highest number of reported fraud cases per capita.
• Florida, Arizona, and Texas had the highest number of reported identity theft cases per capita.

About CSN

The CSN compiles complaints from a number of sources including the Federal Trade Commission, Internet Crime Complaint Center, Better Business Bureau, and the National Fraud Information Center. Since 1997, the CSN has compiled more than 5.4 million complaints.

Protect yourself

Identity theft and fraud affects millions of people each year. Even though there are laws protecting you from being financially responsible for fraudulent charges, you’ll still spend your time and money clearing your name of the charges. According to a recent Javelin study, the average victim spends 21 hours and $373 dealing with identity fraud.

Make sure you know the signs of identity theft, like calls from debt collectors about accounts you never opened. If your identity is stolen, you can place a fraud alert or security freeze on your credit report to keep thieves from hurting you even more.

If you do fall victim to fraud or identity theft, you should file a complaint with the FTC. Check out their how-to video here: