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Identity Theft Targets the Affluent |
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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.
 Over half of the affluent (46%) view identity theft as a real concern in terms of electronic information, per Spectrem research. Unfortunately the affluent are among the most avidly targeted for identity theft scams, especially younger affluent investors. Assuring them that you are safeguarding their information, especially their electronic information, is safe.
At Risk are Those 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 same address or a postal redirect is placed on 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.Phishing E-mails On The RiseThe phishing email shown above was received 7/19/07, from a false company in Romania (home base for many organized hacker groups). Convincingly professional in appearance, the company is NOT endorsed by the major retailer whose image and name are appropriated. The spammer’s goal is to systematically acquire usable personal information such as: pass codes, account numbers, social security numbers, addresses, and names which they can exploit. Groups like these are increasingly run by organized crime syndicates, and are very successful at what they do. They are almost impossible to arrest and prosecute, because cyber-crime law is a very new and difficult category to force for many countries. And the international aspects add another layer of prosecutorial difficulty. 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.) 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 registering their credit cards, identity theft is still rampant.
Protect Electronic Assets
While 52% of the affluent believe that the government should be doing more to protect them from identity theft, 75% believe that their financial institutions should be doing more. This is a pressing fear for them and assuaging their fears about the safety of their electronic data will do much to encourage online, cost-saving interactions with clients.
Pay particular attention to customer information kept in electronic format. Because of internet connectivity and network accessibility, electronic information kept in databases and computers is often targeted by hackers who specifically seek software and network vulnerabilities, as in recent events where personal information was accessed through several financial institutions’ electronic systems in 2006.
Identity theft shows no signs of going away and as newer and faster technology emerges, novel 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 and your clients now and in the future. 
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High Net Worth Advisor Insights Newsletter April 2008
