Protect Yourself From the Politics of ID Theft

The U.S. Justice Department recently indicted 11 hackers in the largest identity theft scam in U.S. history.
The scammers allegedly hacked into the wireless computer networks of major retail chains like TJX (TJX), OfficeMax (OMX), Boston Market, Sports Authority (GSIC), Forever 21, BJ’s Wholesale Club (BJ) and DSW (DSW) and stole passwords, credit cards numbers and personal account information.

But despite these massive numbers, a recent Consumer Reports study found the biggest source of identity leaks is none other than the U.S. government!

THE SURPRISE PROBLEM
The report found more than 230 security lapses in the federal, state and local government from 2005 to mind-June 2008 that ended with the loss or exposure of nearly 44 million consumer records. These records included Social Security or driver’s license numbers and other personal information.

While the numbers represent roughly one out of five ID breaches reported during the three-year period, Consumer Reports says the statistic doesn’t “accurately portray the problem.” In 2006, an investigation by the House Oversight and Government Reform Committee uncovered 788 breaches between January 2003 and July 2006. Those breaches were linked to 17 federal departments and agencies – agencies often expected to protect information. The most common reason for the breaches? Pure negligence: officials simply loosing laptops. The IRS reported 24 incidents where laptops went unaccounted for, after employees checked the devices with baggage at airports, left them in unlocked cars or lost them on trains and buses. Those incidents compromised the information of 480 taxpayers.
The numbers are staggering, but according Robert Tiernan, managing editor, Consumer Reports, are rarely publicized. “With government data breaches, even fewer get identified because the government, unlike business, doesn’t have a financial incentive to do so.”
But lost laptops are just one way personal information is leaked. Medicare cards, in addition to military identification cards and public court records all contain visible Social Security numbers. It’s an easy target for identity thieves, who might use a stolen ID one to two years later.