Identity theft, a term given little attention a generation ago, has now become a huge problem for consumers. Estimates place identity theft at over 5 million persons each year.

Over half of the affluent (52%) view identity theft as a real concern, per Spectrem research. Unfortunately the affluent are among the most avidly targeted for identity theft scams, especially younger affluent investors.  

At Risk Are Those Living in Premium Urban Residences

Though Spectrem research shows that 53% of affluent women surveyed are very concerned about identity theft, as opposed to just 38% of men, there is an even split in terms of gender for identity theft victims, and more than half of identity theft victims fall between the 30-50 age range. Also at risk are those with high incomes living in premium urban residences. That group is especially affected by one of the newest trends in identity theft; misusing a victim’s current or previous address, with the high-risk targets being wealthy home owners. The victim’s details are used by someone living at the mail by the scammer. Another version of this swindle involves using an old address to cull credit history that has not been forwarded to the new address.

Affluent Are Especially Vulnerable to Phishing Scams

Estimates indicate that 109 million U.S. Adults received phishing emails in the last 12 months, as opposed to only 57 million in 2004. (Phishers attempt to fraudulently acquire sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity, like a bank or a company like PayPal, in an electronic communication.)

An average victim loses from $257 to $1,244, and only recovers about 54% of their funds through banks and credit card companies. The affluent are especially vulnerable to phishing scams because they tend to participate in more online transactions; like trading systems, online financial services, and e-commerce sites. It is estimated that an affluent person receives 112 phishing emails a year, while an average person receives 74 and the affluent lost four times as much to these scams as other victims.

Though 96% of the affluent say they have taken steps to protect themselves from identity theft, including simple things like using a paper shredder, installing security packages for their computer system, and registered their credit cards, identity theft is still rampant., because unfortunately it is extremely easy to fall victim to identity theft.

Identity theft shows no signs of going away and as new technology emerges, new ways to scam and cheat people will always follow. Staying vigilant, wary, and on top of the trends are the best ways to protect yourself now and in the future.

Simple steps you can take to help prevent identity theft:

¨ Never respond to unsolicited emails requesting that you provide personal information or passwords, even if they seem like official correspondence or if the website seems legitimate. Contact the company directly to confirm that the request is real, if you are suspicious.

¨ On a periodic basis, order and examine your credit report from each of the three main bureaus, Experian, Equifax, and TransUnion. This may seem obvious but it is the cornerstone of protecting yourself from identity theft.

¨ Close and/or cancel all unused credit cards and cross check against your credit report.

¨ Be very wary of unsolicited phone calls requesting private information, such as credit card numbers, passwords and social security numbers.

¨ Use a U.S. Postal Service mailbox to send mail or pay bills, not your personal mailbox outside your home.

¨ Make copies of all items you carry in your wallet and keep them in a secure location.

¨ Do background checks on all household workers, employees, and business associates (such as consultants or advisors). Most identity theft originates from within your “circle”.

¨ Donate money anonymously or under a different name whenever possible.

¨ Install efficient, effective and up-to-date firewall systems on all your computers and use a paper shredder for all correspondence that will end up in the trash.

¨ If you are the victim of identity theft, despite your best efforts, it is crucial to report the incident to the police, all three credit bureaus (Experian, Equifax, and TransUnion), the Social Security Administration, and the Federal Credit Reporting Agency.

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