This recent report (
http://www.attorneygeneral.gov.uk/nfa/WhatAreWeSaying/NewsRelease/Pages/identity-fraud-costs-27billion.aspx) estimates the identity fraud cost are huge for the UK economy (read us taxpayers).
There are tons of checklists, guidelines and web pages showing how to protect one's identity. However I am not sure if we have the best approach to the problem.
We should ask the question: "Why is it so easy to use stolen identities?" why does a credit card company accepts identity details so easily without checking?
In my country, one has to show ID card or passport to open any financial account. That means physically walk somewhere. Identity fraud is virtually unknown there.
I wonder if there is a correlation between lack of identity verification and identity fraud. Could be a good subject for an university research!
So instead of concentrating on protecting our identities we should urge financial institutions to strengthen processes that govern financial transactions and obtaining credit.
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