NEW YORK (MainStreet) — Identity theft robs about 8 million Americans annually, with the average out-of-pocket loss creeping up to $631 per incident in 2010. Americans are fed up with this fraud, and willing to pay higher taxes to help the government cut it out of their lives, according to a new study from Florida State University.
By examining taxpayer attitudes about I.D. theft and the government’s role in combating it in four states (llinois, Pennsylvania, Louisiana and Washington), the study found that people would pay up to $87 each for the government to establish an I.D. theft protection program.
The criminologists from Florida State University who authored the study say that 75% of the 2,300 participants were willing to pay for a government program that would reduce I.D. theft by 75%, even though no such program is currently in place; 40% said they would even pay more taxes to fund an I.D. theft protection program that cut consumer fraud by only 25%.
The individual tab for identity theft clocks in at between $2,800 and $5,100, say the researchers. Total losses related to I.D. theft, as estimated by the Federal Trade Commission (and cited in the FSU report) reach up to $42 billion annually in the U.S. Looking at the last 10 years, the damage done by consumer I.D. fraud rose to “hundreds of billions of dollars,” said the study.
“Identity theft has affected between 5% and 25% of U.S. households,” Piquero says. “Because of our increasing reliance on technology, and given the resourcefulness of hard-to-catch identity thieves, it seems likely that most, if not all, of us will at some point be victims of this crime, or know others that have been.”