U.S. Department of Justice
Office of Justice Programs
Bureau of Justice Statistics
Bulletin

First Estimates from the National Crime Victimization Survey
Identity Theft, 2004


April 2006, NCJ 212213


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This file is text only without graphics and many of the
tables. A Zip archive of the tables in this report in
spreadsheet format (.wk1) and the full report including
tables and graphics in .pdf format are available from:
http://www.ojp.usdoj.gov/bjs/abstract/it04.htm 
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By Katrina Baum, Ph.D.
BJS Statistician

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Highlights

In 2004, 1 in 33 households discovered at least 
one type of identity theft during the previous 
6 months

* Credit card theft was the most common type of
identity theft (1.5% of households).

* Households headed by persons age 18-24 and
those in the highest income bracket ($75,000 or
more)were the most likely to experience identity
theft.

* Rural households were less likely than urban or
suburban households to have a member experience
identity theft(2% versus 4% and 3%, respectively). 

* 3 in 10 households experiencing any type of
identity theft discovered it by missing money or
noticing unfamiliar charges on an account; almost 
1 in 4 were contacted by a credit bureau.

* Overall a third of households experienced one 
or more problems as the result of the episode of 
identity theft. 

* The most common problems encountered included 
being contacted by a debt collector or creditor, 
banking problems, or problems with credit card 
accounts.

* 1 in 5 of victimized households with problems
spent at least one month resolving problems. 

* Credit card thefts were the least likely among
identity thefts to still be causing problems at 
the time of the interview to the victims or their
households (9%).

* The estimated loss as a result of identity theft 
reported by the victimized households was about $3.2 billion. 

* About two-thirds of households experiencing
identity theft reported some type of a monetary 
loss as a result of theft.
--------------------------------------------------

In 2004, 3.6 million households, representing 
3% of the households in the United States, 
discovered that at least one member of the
household had been the victim of identity theft
during the previous 6 months. The households most
likely to experience identity theft  
  
* earned $75,000 or more

* were headed by persons ages 18-24

* were in urban or suburban areas.

These findings represent 6-month prevalence 
estimates and are drawn from interviews
conducted from July to December 2004 for the
National Crime Victimization Survey(NCVS). 
(See Methodology).

For the NCVS, identity theft was defined to 
include three behaviors (see Appendix)--
  
* unauthorized use or attempted use of existing
credit cards

* unauthorized use or attempted use of other
existing accounts such as checking accounts

* misuse of personal information to obtain new
accounts or loans, or to commit other crimes. 

Estimates in this report are drawn from interviews
with knowledgeable respondents age 18 or older in
each sample household about discoveries of identity
theft of anyone in their household during the
previous 6 months. 

All estimates refer to the numbers or proportions 
of households in which one or more members
discovered one or more episodes of identity theft
during the reference period. Estimates presented 
are not the number of episodes experienced.

A period of identity theft is referred to as an
"episode" and encompasses all of the individual
incidents or actions that occurred. An incident 
refers to each individual action that was taken 
during the period of the identity theft. A 
person can experience more than one incident
during an episode. (See Methodology.)

People often discover that they have been victims 
of identity theft long after the theft has taken 
place. Because people may not know exactly when 
the actual identity theft occurred, the survey 
asks about thefts discovered by victims during 
the previous 6 months, regardless of when the 
theft actually took place.

------------------------------------------------
Defining identity theft

There is no one universally accepted definition 
of identity theft as the term describes a variety 
of illegal acts involving theft or misuse of 
personal information. Under the Fair Credit 
Reporting Act(FCRA), identity theft is defined 
as the use or attempted use of an account or 
identifying information without the owner's 
permission.

The 1998 Identity Theft and Assumption Deterrence
Act makes it a Federal offense to knowingly transfer 
or use, without lawful authority, a means of 
identification of another person with the intent 
to commit, or to aid or abet, any unlawful activity 
that constitutes a violation of Federal law, or that 
constitutes a felony under any applicable State 
or local law.  
 
State laws pertaining to the theft or misuse of
personal information vary in offense definition. 
A listing of Federal and State laws pertaining to 
identity theft may be found at: 
<http://www.consumer.gov/idtheft/law_laws_state_
criminal.htm>.
---------------------------------------------------

Overall estimates

In 2004, 3.6 million households, representing 3% 
of all households, discovered during the previous 
6 months that at least one member of the household
was a victim of identity theft (See Highlights). 
The most common type of identity theft was
unauthorized use of credit cards, experienced by 
1.7 million (1.5%) households. 

About 900,000 households (0.8% of all households)
were victimized by the theft of an existing account
other than a credit card account. This includes 
the use or attempted use of a wireless telephone
account, bank account, or debit/check card account
without the account holder's permission to incur
charges or to take money from the account. 

Approximately 500,000 households (0.5%) were
victimized by the use of personal information to
obtain new credit cards or loans, run up debts, open
other accounts, or otherwise commit theft, fraud, or
some other crime. 

Households were more likely to discover thefts
from existing accounts than they were from misuse
of personal information or multiple types of theft 
at the same time. For more than 400,000 households
(0.4%), the identity theft encompassed two or more
types of thefts that occurred at the same time. 

Characteristics of households victimized 
by identity theft 

Households headed by persons ages 18-24 were more 
likely to experience identity theft than others.
***Footnote 1: A household member who owns, is 
buying or renting the sample housing unit. This 
person is generally age 18 years or older. See
Methodology.*** About 1 in 20 households headed
by a person age 18-24 had a member who was the
victim of an identity theft during the previous 
6 months. Households headed by persons ages 65 
or older were the least likely to experience 
identity theft. There were no differences 
detected by race or ethnicity in the percentage 
of households experiencing identity theft.

Households in the highest income bracket, those
earning $75,000 or more, were the most likely to
experience identity theft.

Rural households were less likely than urban or
suburban households to have a member experience
identity theft during the past 6 months. Urban 
and suburban households experienced similar
percentages of identity theft.

Characteristics of identity theft

About 6% of households experiencing identity theft
during the 6-month reference period reported that
they experienced multiple episodes. If more than
one episode was discovered during the previous 6
months, the characteristics of the most recent
episode are discussed. 

Awareness

Almost a third of households experiencing any type
of identity theft discovered it by missing money or
noticing unfamiliar charges on an account. One in 
five victimized households were contacted by a 
credit bureau, and 1 in 9 became aware of the theft 
as a result of having banking problems. About 1 in 
18 households experiencing identity theft discovered 
the theft as the result of noticing an error in a 
credit report.

The way in which members of a household experiencing 
identify theft discovered the theft varied by type 
of theft. Households experiencing theft of other 
existing accounts were more likely than households 
with credit card theft, personal information theft, 
or multiple types of theft at the same time to 
discover the theft by missing money or noticing 
charges on an account (42% versus 31%, 8%, and 30%).

Households with credit card thefts were equally
likely to have missed money/noticed charges on an
account or have been contacted by a credit company
or bureau (31% and 31%, respectively). Almost a
fifth of households experiencing theft of personal
information discovered it by being contacted by a
credit bureau.

Problems experienced

Overall a third of households that experienced
identity theft reported they experienced one or 
more problems as the result of the theft. 

Among households that had problems, households
were equally likely to have been contacted by a 
debt collector or have banking problems (34% 
versus 31%). They were somewhat more likely to
be contacted by a debt collector than they were to
have problems with their credit card accounts(34%
versus 26%). 

About 1 in 6 victimized households had to pay
higher interest rates as the result of the identity
theft, and 1 in 9 households were denied phone or
utility service. Households were equally likely to 
be turned down for insurance or pay higher rates, 
be the subject of a civil suit or judgment, or be 
the subject of a criminal investigation (7%, 5%, 
and 4%, respectively). About a fifth of households
reported they experienced some other kind of
problem.

Time it took to resolve all problems

A third of households victimized by any type of
identity theft reported that problems associated 
with the theft were resolved in 1 day. About 1 in 
5 households spent 2-7 days resolving problems; a
similar proportion of households spent 1 month or
more resolving problems.***Footnote 2: Estimates
of time spent resolving problems extend to the date
of the interview. If problems persisted, victims 
may have spent additional time resolving them.***
One in seven households reported that they did not
know how much time they spent resolving problems. 

When time spent resolving problems was examined
by type of identity theft, 1 day or less was the 
most common amount of time spent resolving 
problems as reported by households experiencing 
thefts of credit cards, existing accounts, and 
personal information (39%, 31%, and 32%, 
respectively. Households experiencing theft of 
personal information were more likely to spend 
3 or more months resolving problems than were 
households experiencing thefts of existing 
credit cards or other existing accounts(9% 
versus 4% and 4%).

Ongoing misuse associated with 
identity theft 

About three-quarters of the households that
discovered an episode of credit card theft or
experienced multiple types of theft during the 
same episode reported that the misuse had 
stopped by the time of the interview. Misuse 
was more likely to have stopped for households 
experiencing existing credit card theft than those 
experiencing theft of other existing accounts or 
misuse of personal information (78% versus 65% 
and 54%). Households victimized by theft of 
personal information were more likely to report 
that they did not know whether the misuse had 
stopped than households experiencing credit card 
theft or misuse of existing accounts(15% versus 
2% and 6%).

In addition to the misuse itself, victims of identity
theft may also experience problems such as clearing
up credit card accounts or reports and paying higher
interest rates. Overall, about 1 in 6 households
reported that the misuse associated with their
episode of identity theft was still causing problems
to the respondent or another household member.

About a third of households experiencing thefts 
of personal information and thefts of multiple 
types during the same episode reported that the 
misuse was still causing problems; this proportion 
was higher than the proportion of households that
experienced thefts of existing credit cards (9%) 
or other existing accounts (18%). Credit card thefts
were the least likely among identity thefts to still 
be causing problems to the victims or their households
(9%).

Economic loss

The estimated loss as a result of identity theft was
about $3.2 billion (not referenced in a table).
***Footnote 3: Estimate does not include all losses 
as a result of identity theft. Costs or 
losses to businesses as a result of identity theft 
may or may not be included.*** Although 6% of the victimized 
households reported more than one theft, information 
about the characteristics of identity theft including 
loss is based on only the most recent episode and of 
those who provided a dollar amount. The losses 
reported include money that may have been reimbursed 
by others such as credit card companies or insurance 
companies and exclude such things as costs associated 
with paying higher interest rates and wages lost from 
time spent clearing up problems associated with the 
theft. It is possible that households for which misuse 
was still ongoing at the time of the interview may have
continued to suffer losses after the interview.

Most households incurred a monetary loss as a
result of the identity theft. Of the households
experiencing identity theft 
  
* 69.2% reported a monetary loss

* 17.1% reported no loss

* 13.8% did not know the amount of the loss.

Households experiencing misuse of personal
information were more likely than other types of
households to have no money involved (33% versus
14%, 16%, and 10%). About a sixth of households 
experiencing thefts of existing credits cards or 
other existing accounts reported no money was 
involved in the theft.

Fifteen percent of households experiencing any 
type of identity theft sustained losses of at 
least $1 but less than $100. Households 
experiencing thefts of existing credit cards or 
other existing accounts were equally likely to 
sustain losses in this range (18% and 19%). 

Overall, 1 in 20 households reported $5,000 or 
more was involved. Households experiencing 
multiple types of theft at the same time were more 
likely than those with thefts of existing credit 
cards or misuse of personal information to have 
$5,000 or more involved (12% versus 5% and 5%). 
Similar proportions of households experiencing 
thefts of existing credit cards or misuse of 
personal information sustained losses of $5,000 
or more (5% and 5%). 

Among households actually sustaining a loss and
for which the amount of the loss was known, over
half (55%) reported less than $500 was involved
(figure 2). Three in ten of the victimized 
households that sustained a loss reported the 
amount of money involved was between $500 to 
$2,499. 

About 1 in 14 (7%) victimized households with a 
loss had $5,000 or more involved.

The average amount of money involved in any type
of identity theft in which there was a loss was
$1,290 (table 7). For households experiencing
misuse of personal information the average loss 
was $2,360, and it was $2,630 for households
experiencing multiple types of theft at the same
time. On average, $640 was involved in the thefts 
of other existing accounts. 

Averages, or arithmetic means, are influenced by
extremely low or high values. A median, or midpoint 
at which half the households fell above or below, 
is not impacted by extreme values. The median 
amount of loss was $400 for all victimized
households sustaining a loss. Households
experiencing thefts of existing credit cards 
or other existing accounts both had medians 
of $300. Households experiencing misuse of 
personal information sustained a median loss 
of $800.

Methodology

In July 2004 questions were added to the National
Crime Victimization Survey (NCVS) to provide
ongoing estimates of identity theft victimization
(appendix). To minimize cost and burden to
respondents, these questions were administered
once in each household to the household respondent. 
In the NCVS, the household respondent answers more 
in-depth questions about crimes the entire 
household may have suffered as a whole, such as 
burglaries. 

-----------------------------------------------
The Federal Trade Commission
The Federal Trade Commission (FTC) has released
a report on estimates of identity theft which 
can be accessed at <http://www.ftc.gov/os/2003/09/
synovatereport.pdf>.

Estimates of identity theft from the NCVS differ
from the FTC survey. The FTC reported that about
10.1 million people experienced identity theft in 2003.
Methodological differences between the programs may 
account for the differences in estimates.
Differences include: unit of analysis, reference
period, counting method, and use of a "reference
person" (person owning, buying, or renting the
unit).
-----------------------------------------------

Time limitations permitted asking only about the
circumstances of the most recent episode of identity
theft if more than one had been experienced by the
household during the six months of the reference
period. For more information refer to the Final
Report of Cognitive Research on the New Identity
Theft Questions for the National Crime
Victimization Survey <http://www.census.gov/srd/
papers/pdf/ssm2004-02.pdf>.

The estimates presented in this report are 6-month
prevalence estimates, that is, the households
victimized by identity theft in a 6-month period in
2004. Annual prevalence estimates will be published 
when data are available for 2005. It is likely that 
the 6-month prevalence estimate presented in this 
report, 3% of households, would be somewhat more 
than half that of an annual estimate if a full year's 
data were available. This is the case because the 
NCVS utilizes a 6-month reference period. To 
construct annual prevalence estimates of 
victimization from the NCVS, it is necessary 
to aggregate responses from two(and sometimes 
three) interviews at each sample address.
Households that reported being victimized by
identity theft in more than one interview in a 
given year would still be counted only once for 
the overall annual measure.

Demographic characteristics presented in this 
report are of the household member age 18 or 
older who owns, is buying or is renting the sample 
housing unit. This person, designated the household 
head or reference person, is usually the first 
person listed in the household membership roster. 
If all household members are under 18, the 
interviewer will choose the person identified as 
owning or renting the living quarters.   
 
Because the person designated as the household
head may arbitrarily be either the husband or wife 
in households with married couples, gender was
omitted from demographic comparisons. Similarly,
the age distribution presented in this report 
refers to the age of the household head but not 
necessarily the age of the person who experienced 
the identity theft. The survey did not ask which 
member of the household was the victim of the 
identity theft. 

Standard error computations

Comparisons of estimates discussed were tested to
determine if the differences were statistically
significant. Differences described as higher, lower,
or different passed a hypothesis test at the .05 level
of statistical significance (95%-confidence level).
That is, the tested difference was greater than twice
the standard error of that difference. For comparisons 
of estimates which were statistically significant at 
the 0.10 level (90%-confidence level), differences 
are described as somewhat, marginal, or slight. 
Caution is required when making comparisons of 
estimates not explicitly discussed in this report. 
What may appear to be a large difference in estimates 
may not test as statistically significant at the 95%-
or even the 90%-confidence level. Significance testing 
calculations were conducted at BJS using statistical 
programs developed specifically for the NCVS by the 
U.S. Census Bureau that consider the complex NCVS
sample design when calculating generalized variance 
estimates.

----------------------------------------------------
Appendix. Identity theft questions included in the
National Crime Victimization Survey

45c. During the last 6 months, that is since-- 
--,20--_have you or anyone in your household
discovered that someone--  

(a) Used or attempted to use any existing credit
cards or credit card numbers without permission
to place charges on an account?

(b) Used or attempted to use any existing accounts
other than a credit card account -- for example, 
a wireless telephone account, bank account or
debit/check cards -- without the account holder's
permission to run up charges or to take money
from accounts?

(c) Used or attempted to use personal
information without permission to obtain NEW
credit cards or loans, run up debts, open other
accounts, or otherwise commit theft, fraud, or
some other crime?

45d. Was the misuse of -(the credit card 
account(s)/any existing accounts other than credit
cards/personal information or new account(s)) one
episode or more than one episode of identity theft?

45e. Did these episodes occur separately or at the
same time?

45f. Which episode of identity theft was most
recently discovered?

45g. How did you become aware of the identity
theft?

45h. What was the total dollar amount of the
credit, loans, cash, services, and anything else 
the person obtained while misusing (the credit 
card account(s)/any existing accounts other than 
credit cards/personal information or new account(s))? 

45i. Has the misuse of--(the credit card
account(s)/any existing accounts other than credit
cards/personal information or new account(s))
stopped (e.g. you or a household member closed a
checking account)?

45j. Is the misuse of--(the credit card
account(s)/any existing accounts other than credit
cards/personal information or new account(s)) still
causing problems for you or any other household
member? For example, are you still spending time
clearing up credit accounts or your credit report.

45k. How much time did it take to resolve ALL
PROBLEMS associated with the misuse of--(the
credit card account(s)/any existing accounts other
than credit cards/personal information or new
account(s)) after the misuse was discovered?

45l. As a result of (any of) the misuse of--(the
credit card account(s)/any existing accounts other
than credit cards/personal information or new
account(s)) discovered in the last 6 months, have
you or anyone in your household...  
Been turned down for a loan?
Had banking problems?
Had problems with credit card accounts?
Had phone or utilities cut off or been 
denied new service?
Had to pay higher interest rates on credit
cards, loans, etc.?
Been turned down for insurance or had to pay 
higher rates?
Been contacted by a debt collector or creditor?
Been the subject of a civil suit or judgment?
Been the subject of a criminal investigation,
warrant, proceeding, or conviction?
Had some other problems? Specify --
----------------------------------

The full NCVS questionnaire and additional
methodology are available at the BJS World 
Wide Web Internet site:
<http://www.ojp.usdoj.gov/bjs/cvict.htm#ncvs>.
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The Bureau of Justice Statistics is the 
statistical agency of the U.S. Department 
of Justice. Maureen Henneberg is acting 
deputy director.

BJS Bulletins present the first release of 
findings from permanent data collection 
programs.

This Bulletin was written by Katrina Baum 
under the supervision of Michael Rand. 
Patsy Klaus verified the report, and Kristen 
A. Hughes provided comments.

Tina Dorsey and Marianne Zawitz produced and
edited the report. Jayne Robinson prepared 
the report for publication.

April 2006, NCJ 212213
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This report in portable document format and 
in ASCII and its related statistical data 
and tables including five appendix tables 
are available at the BJS World Wide Web 
Internet site: <http://www.ojp.usdoj.gov/bjs/>
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End of file
03/30/06 ih