Identity Theft: A Threat To Business Innovation

The integration of technology to almost every aspect of life has changed the expectations of the consumers to the quality of services that they deserve. Consumers now prefer convenient and hassle-free services that are readily available almost literally when and where they want. And many businesses recognize that adapting to this kind of market would make them sell more. Some would extend their business hours, even going as far as operating 24/7. Others would take advantage of the use of outsourcing and provide over-the-phone customer services. There are even those who have explored the use of mobile apps and online shops in bolstering their consumer reach. But sadly, these business innovations have also made proprietors vulnerable from threats concerning consumers’ safety—identity theft.

Identity theft is the fraudulent acquisition and use of a person's private identifying information, usually for financial gain. Identity thief often uses the information they have acquired such as social security number to open accounts, file taxes, or make purchases. In 2015, the U.S. Federal Trade Commission has reported 490,000 identity theft complaints. It has inflated by 47% since 2014. The sudden increase can be associated to the rise of consumers that are taking advantage of over-the-phone services and online services that require statement of personal information.

Identity thieves, once they get a hold of personal information, can find a way to drain an innocent user’s bank account, run up charges in credit cards, or get medical treatment using health insurance. There are many ways that identity thieves can get a hold of information: they can skim through trash and look for old bills or financial statement; they can also steal mail and take advantage of pre-approved credit card offers—some may even pose as a credible company and send you an email asking for your personal information.

Recognizing the threat that identity theft poses to the safety of the consumers and the stability of businesses, the House has finally passed the H.R. 3832, or the Stolen Identity Refund Fraud Prevention Act of 2016 this May 15, 2016 for the Senate’s review. The bill has been introduced by Rep. Jim Renacci (R-OH) and was co-sponsored by Rep. John Lewis (D-GA). It includes provisions to both establish a centralized point of contact at IRS for ID theft victims and improve taxpayer notification of suspected ID theft.

Identity theft is a serious issue that poses a threat to consumers and businesses and everyone should be aware of it. It puts businesses in a tight situation that consumers will make them question the safety of their information. If you think that someone has assumed your identity to file taxes, contact the Internal Revenue Services. Follow the instructions that they will provide to address fraudulent complaint. To report other identity theft cases, you may visit the Federal Trade Commission website that has been specified to help identity theft victims and spread awareness about it. The website comes up with questionnaires that will help you state the severity of the case. It also comes with a recovery plan and a walk though program in updating and tracking your progress.