When it comes to identity theft and other financial fraud, the perpetrator is sometimes close to home.
While people worry about having their identity or money stolen by strangers online, family, friends and acquaintances are increasingly the ones stealing and profiting from personal information, according to one survey. This creates a tricky and potentially expensive situation for victims to resolve.
Experts say theft by a family member or acquaintance is vastly underreported.
The National Crime Victimization Survey by the Bureau of Justice Statistics from 2016 found that just 6% of all victims of identity theft knew something about the offender. But another more recent report by Javelin Research & Strategy, which surveyed 5,000 adults, found that the number of victims who knew the offender in cases of identity theft spiked to 15% in 2018 from 7% in 2017. Because victims were hesitant to report the crime, about three-quarters of these victims personally bore all or some liability for the fraud that occurred.
Experts said that victims generally do not report the fraud because they don’t want to get friends or family in trouble with the law or cause personal rifts. They often feel some shame and embarrassment that it occurred. And in some cases – such as with children or the elderly – they may be unaware or reliant upon the perpetrator.