Highest Rates of U.S. Identity Fraud in New York and the Western States

By analyzing data from its ID Network(TM), a trusted third-party identity fraud prevention system, ID Analytics is able to gain a quantitative understanding of the nature of identity fraud. The ID Network comprises three billion identity elements -- including names, addresses, Social Security numbers and phone numbers -- which are contributed in real time, by organizations spanning multiple industries, for the sole purpose of preventing identity fraud. Sophisticated analytics applied against data in the ID Network enable ID Analytics to examine how identities behave across organizations. Further statistical analysis enables ID Analytics to determine where identity fraud is most common.

"It's significant that these are the first publicly-available, statistically valid research findings based on actual data about frauds. Previous research from other sources has had to rely on consumer victim reports, which are, by their nature, incomplete," said Stephen Coggeshall, ID Analytics' chief technology officer and the author of the research. "What's most meaningful about these findings is that they can help identify specific areas where identity criminals may be operating in an organized manner. We've actually analyzed the data down to the 5-digit zip code level which gives precise visibility into concentrations of identity fraud, which may indicate fraud rings or some other criminal activity."

"This new data from ID Analytics is in line with what we've heard from the victims themselves, and from law enforcement," said Jay Foley, executive director of the Identity Theft Resource Center. "It's our hope that businesses will use this new research to further bolster their efforts in the fight against identity fraud, and that consumers living in these areas will be especially vigilant in protecting themselves." (Consumer education and resources can be found at the center's web site at http://www.idtheftcenter.org.)

Fraud rates were calculated based on the total number of reported identity frauds divided by the number of applications; as a result, the population density was scaled out, enabling comparisons among areas with differing populations. Applications in this analysis were submitted to credit grantors from January 2005 through June 2006. The addresses on the applications may belong to the victims of the identity fraud if the perpetrator were to use the complete and accurate identity information of the victim. However, based on prior research into the nature of "true-name identity theft" and "synthetic identity fraud," ID Analytics scientists believe the majority of the addresses are associated with the perpetrators of the fraud using synthetic identities of real and false identity elements. The research showed that identity theft victimizing an actual consumer (true-name identity theft) accounts for 10-15 percent of all identity fraud. Identity fraud using identities fabricated from real and false data (synthetic identity fraud) accounts for 85-90 percent of all identity fraud. While the applications include real addresses for the purposes of verification and receipt of credit cards and goods, the addresses may be residences, places of work or any other physical location where fraudsters can conveniently receive the tools and plunder of their trade.

A white paper with more detailed findings on the research can be obtained upon request by emailing marketinginfo@idanalytics.com.