BULLETIN INTELLIGENCE

U. S. D E P A R T M E N T O F J U S T I C E

Key Findings

• Methamphetamine abusers and distributors 

are increasingly engaging in identity theft; 

methamphetamine abusers are doing so to 

acquire funds for drug purchases, while methamphetamine distributors are committing 

identity theft to generate income for use in 

their trafficking operations.

• Methamphetamine-related identity theft appears 

to occur most often in southwestern and western 

states where distribution and abuse of the drug 

are most prevalent. 

Overview

Federal Trade Commission (FTC) data show 

that reported incidents of identity theft in the United 

States rose significantly between 2000 and 2005 

before decreasing slightly in 2006 (see Figure 1).

Moreover, the Better Business Bureau estimates that 

approximately 8.9 million Americans had their identities stolen in 2006 at a cost of $56.6 billion that 

year, up from $54.4 billion in 2005.1

 Contributing to 

this problem are rising levels of methamphetaminerelated identity theft reported by federal, state, and 

local law enforcement officials.2 Law enforcement 

reporting indicates that methamphetamine users 

commonly engage in identity theft to acquire 

1. It appears from these data that a significant number of identity theft victims do not file a complaint with the Federal Trade Commission.

2. Data specific to methamphetamine-related identity theft are not currently available.

Figure 1. Number of Reported Identity Thefts, 2000 to 2006.

Source: Federal Trade Commission.

31,103

215,177

255,565 246,847 246,035

86,168

161,819

0

50,000

100,000

150,000

200,000

250,000

300,000

2000 2001 2002 2003 2004 2005 2006

Year

Number

Methamphetamine-Related Identity Theft

Product No. 2007-L0424-003 May 2007
Methamphetamine-Related Identity Theft

2

another person’s personal information, which they 

either sell to obtain money for methamphetamine 

purchases or exchange for the drug. The prevalence 

of such identity theft is rising in many areas where 

rates of methamphetamine distribution and abuse are 

high or increasing.

MethamphetamineRelated Identity Theft

Some methamphetamine abusers engage in various forms of identity theft in order to obtain methamphetamine. For example, methamphetamine 

abusers often generate cash by stealing and subsequently cashing personal checks or by using stolen 

credit cards to purchase merchandise that they sell 

for cash or trade for methamphetamine. Some 

abusers also trade stolen credit cards or personal 

documents (such as checks, bank statements, workplace pay statements, etc.) to distributors in 

exchange for methamphetamine. The distributors 

then sell the stolen credit cards and documents or 

provide them to methamphetamine producers as 

payment for the drug. For example, the Central 

Valley California High Intensity Drug Trafficking 

Area (HIDTA) reports that drug trafficking organizations (DTOs) and criminal groups that traffic 

methamphetamine in the HIDTA region organize 

groups of methamphetamine abusers and direct 

them to steal personal identity documents in 

exchange for drugs or cash. Identities traded for 

methamphetamine are then used by the DTOs and 

criminal groups in a variety of ways, including:

• To launder drug proceeds: 

■ By opening bank accounts in victims’ names 

to deposit, transfer, and withdraw funds. 

■ By using victims’ identities to transfer large 

sums of money through money services 

businesses and to purchase money orders in 

amounts that require proof of identification.

■ By applying for mortgages in victims’ names.

■ By using victims’ identities to acquire 

online credit and to make purchases.

• To supply criminal fugitives within the DTOs 

and criminal groups with fresh identities in order 

to evade law enforcement, incarceration, or even 

deportation (in the case of illegal aliens).

• To sell for cash to brokers, who resell the identification documents to other criminals for their use.

• To purchase precursor and essential chemicals 

with fraudulent credit cards or checks.

Law enforcement reporting indicates that methamphetamine abusers typically acquire another person’s personal information and identification 

documents by sorting through victims’ garbage as 

well as through mail theft, car break-ins, and Internet 

and e-mail scams. Law enforcement reporting also 

reveals that methamphetamine abusers commonly 

form organized groups to facilitate identity theft. The 

groups typically consist of Collectors, Converters, 

and Passers, who work within a specific geographic 

area and are responsible for specific tasks. 

• Collectors acquire identification documents 

through theft of personal information—usually 

from mail boxes, dumpsters, landfills, and 

parked cars. 

• Collectors provide stolen identification documents to Converters, who use the information to 

establish fraudulent bank and credit accounts 

and to obtain fraudulent checks and monetary 

instruments. 

• Passers use the fraudulent accounts and instruments to purchase expensive consumer items in 

person or to cash fraudulent checks. 

Law enforcement reporting indicates that methamphetamine is the drug most commonly implicated in the drug-related identity theft complaints 

reported each year. For instance, law enforcement 

officials in Arizona, Arkansas, California, Colorado, Kansas, Oregon, and Washington indicate 

that stolen mail and other documentation consistent 

with identity thefts have become increasingly commonplace at locations investigated under methamphetamine-related search warrants. Moreover, data 
National Drug Intelligence Center

3

from the National Association of Counties (NACo) 

2006 Survey of U.S. Counties show that the percentage of sheriffs reporting methamphetaminerelated identity theft in their county increased 4 

percent in just 1 year—from 27 percent in 2005 to 

31 percent in 2006.3

 However, a precise comparison of the rate of methamphetamine-related identity theft with rates of identity theft associated with 

other drugs is not feasible because drug-specific 

identity theft statistics are not currently collected 

by any federal, state, or local agency. Nonetheless, 

2006 FTC data show that rates of reported identity 

thefts are highest in states that have high and sustained levels of methamphetamine distribution and 

abuse. For example, Arizona, Nevada, California, 

Texas, and Florida (all states with well-documented and long-standing concerns regarding high 

levels of methamphetamine distribution and abuse) 

ranked first through fifth for identity theft complaints per 100,000 population (see Table 1). 

Outlook

In areas of the country where methamphetamine trafficking is increasing, such as in the Great 

Lakes, Southeast, and Mid-Atlantic Regions, identity theft will quite likely increase. 

The incidence of identity theft and methamphetamine trafficking and abuse have increased and 

gained national attention in recent years. Likewise, 

the awareness that the two crimes are linked has 

increased among federal, state, and local law 

enforcement. To this end, in January 2007 The 

Methamphetamine and Identity Theft Study Act of 

2007 (H.R. 246) was introduced4

 for the purpose of 

initiating an 18-month national study that will culminate in a report to Congress on the relationship 

between methamphetamine and identity theft. If 

H.R. 246 is enacted, the study will evaluate:

• The possible outcomes of imposing sentencing enhancements if a person commits methamphetamine-related identity theft.

• The feasibility of establishing a federal-wide 

database for information sharing on methamphetamine-related identity theft among federal, state, and local law enforcement agencies.

• The tendency of methamphetamine abusers to 

commit specific types of identity theft.

Growing rates of methamphetamine distribution 

and abuse and ensuing increases in methamphetamine-related identity theft very likely will expose 

the public to other forms of fraud as methamphetamine traffickers find new ways to exploit stolen 

identification information. For instance, methamphetamine abusers may begin to use stolen identities to seek treatment for methamphetamine-related 

illnesses or may sell identities to individuals for 

their use in seeking medical treatment, prescription 

drugs, and even insurance payouts from a health 

insurance provider. The effects of such medical 

identity theft parallel those of financial identity 

theft; however, in addition to financial losses, victims’ medical records could be altered without their 

permission. Incorrect entries on a person’s medical 

record could lead to exclusion from certain types of 

employment, preclusion from acquiring health 

insurance, misdiagnoses, injury, and even death if 

the victim receives medical care based on incorrect 

information in his or her medical records.

3. National Association of Counties (NACo), The Meth Epidemic in America: The Criminal Effect of Meth on Communities, A 2006 Survey of 

U.S. Counties, July 18, 2006.

Table 1. Top 5 States for Identity Theft 

Complaints per 100,000 Population, 2006

State Complaints per 100,000

Arizona 147.8

Nevada 120.0

California 113.5

Texas 110.6

Florida 98.3

Source: Federal Trade Commission.

4. The Act was introduced in April 2005 but failed to be enacted and was reintroduced in January 2007. In February 2007 the Bill was referred 

to the House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security.
Methamphetamine-Related Identity Theft

061907

319 Washington Street 5th Floor, Johnstown, PA 15901-1622 • (814) 532-4601

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Sources 

Federal

Executive Office of the President

Office of National Drug Control Policy

High Intensity Drug Trafficking Areas

Arizona

Central Valley California

Federal Trade Commission

Bureau of Consumer Protection

Division of Consumer and Business Education

U.S. Postal Inspection Service

State

Arizona

Attorney General’s Office

California

Computer and Technology Crime High-Tech Response Teams

Los Angeles

Sacramento

San Diego

San Francisco

San Jose

Office of Senator Dianne Feinstein

Washington

Office of Senator Maria Cantwell

Other

The Council of Better Business Bureaus

National Association of Counties

World Privacy Forum