Identity theft a daily occurrence for High Desert bank
BARSTOW - A crafty computer hacker in Russia or Nigeria shoots off thousands of e-mails, pretending to a be a reputable bank and soliciting account information. The hacker trolls the Internet for an unsuspecting people, ready to snatch personal financial information and exploit it for gain.
An enterprising Dumpsterdiver spends the night sorting through a heap of mail pulled curb-side trash cans, looking for a gem - but not pearls. The diver examines mail for the one that got away - a bill or bank statement full of personal information.
Ron Wilson, CEO, president and chairman of the Desert Community Bank Board, said his bank, which has eight branches in the High Desert and one in Barstow, deals with identity fraud, whether hightech or low-tech, on a daily basis and that instances of fraud increased 20 percent in 2006.
"It's easy to steal people's information," Wilson said. "It's even easier with technology."
Wilson said that of the 31,000 Desert Community Bank customers, at least one experiences an instance of identity theft every day. Scammers digitally alter checks, employees of stores and businesses steal account information, and debit accounts become compromised, Wilson said.
Last year, the approximately 300 reported instances of identity theft cost Desert Community Bank more than $300,000. Though customers experience the initial theft when illegal transactions are made or false checks written, the bank usually takes the final hit.
"At the end of the day, if you stay on top of your accounts, identity fraud becomes the bank's problem," Wilson said.
Banks have instituted different protections and systems to help customers stay track their accounts. Wilson said. Desert Community Bank monitors check numbers, amount of money spent by individual customers and the number of transactions made by individual customers. If something appears suspicious, the bank will contact the customer to verify the transactions. Wilson said helping protect the customer will ultimately protect the bank from losing money to identity fraud.
Fraud down nationally, study finds
The efforts of banks around the country to protect against identity fraud appears to have made an impact on instances of identity theft nationally. According to recent study prepared by the Javelin Strategy and Research group, half a million fewer Americans reported instances of fraud in 2006 than in 2005. The study found that 8.4 million Americans reported being victims of identity fraud. The total amount of money lost due to fraud last year was $49.3 billion, down 12 percent from 2005.
The study also stated that although Internet hacks and scams are increasing as a threat, the chances of suffering identity fraud from a lost or stolen wallet is three times greater. The study also observed high success rates in obtaining information by stealing mail and Dumpster-diving.
The faster someone detects fraud, the less the fraud will cost the victim and the bank, the study found. On average, fraud on an existing account costs $587 per victim. If a new account is opened with fraudulent information, it will on average cost the victim $617.
Young adults suffer higher rates of identity fraud than any other age group. According to the study, 18- to 24-year-olds are twice as likely to be victimized by someone they know, a friend, neighbor or roommate, and the least likely to use Internet protection and to properly dispose of paper statements.
