Identity Theft Damages Estimated at 50-100 Million Dollars

September 2, 2008 – 2:48 pm

In most identity theft incidents, it is almost impossible to fully assess the damage because it is so hard to track. Most victims of identity theft have no idea how their data was compromised, and many incidents are never reported to the authorities. It is only after an identity thief is caught, brought to justice, and fully investigated, that we can get an idea of the actual damage that was done. Philip Cummings was sentenced to 14 years in prison for his involvement in an identity theft scam in 1999-2000. Prosecutors estimate the financial damages caused to individuals and companies are between $50 million and $100 million. This was just one of the multitudes of data breaches recorded to date.

The perpetrator was a computer help desk employee at Teledata Communications. His company gave banks and lenders access to credit histories compiled by TransUnion, Equifax, and Experian. During his employment, Cummings sold passwords and codes that led to the exposure of over 30,000 people. He pleaded guilty to charges of conspiracy and fraud, and was sentenced to 14 years in prison nearly 5 years after his crimes.

This data breach can give us some insight into how devastating any data breach can be. The $50-100 million scam can give us some perspective on a dollar amount on data breaches. This incident has since been far outdone by many recent data breaches, some affecting over 100,000. The possible dollar value of the damage is staggering.

LifeLock offers coverage from the crippling damages incurred by identity theft. Life Lock takes measures to prevent identity theft from happening before it starts. It also keeps watch over your credit to make sure you don’t fall victim to identity theft. Life Lock backs its services with a million-dollar-guarantee* to cover you in case your assets are compromised. To receive a discount on your LifeLock membership, use the LifeLock Promo Code, Defense.

*Guarantee applies only if you become an id theft victim because of a failure in our service. Other restrictions apply. See LifeLock.com for details.

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