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ID Analytics Research Shows Highest Rates of U.S. Identity Fraud in New York and the Western States

Research is First Publicly-Available Data Based on Actual and Attempted Frauds Rather than Consumer Victim Reports

SAN DIEGO, CA, February 14, 2007 — ID Analytics, Inc., the Identity Risk Management company, today announced the results of analytical research on U.S. identity fraud by geography. The new research, which is the first ever to be based on actual and attempted frauds rather than on consumer victim reports, shows the states with the highest rates of identity fraud are New York and the Western states of California, Nevada and Arizona. The analytical research also shows that the highest metropolitan area rates of identity fraud are in New York, while the states with the lowest rates of identity fraud are Wyoming, Vermont and Montana.

By analyzing data from its ID Network®, a trusted third-party identity fraud prevention system, ID Analytics is able to gain a quantitative understanding of the nature of identity fraud. The ID Network comprises three billion identity elements-including names, addresses, Social Security numbers and phone numbers-which are contributed in real time, by organizations spanning multiple industries, for the sole purpose of preventing identity fraud. Sophisticated analytics applied against data in the ID Network enable ID Analytics to examine how identities behave across organizations. Further statistical analysis enables ID Analytics to determine where identity fraud is most common.

"It's significant that these are the first publicly-available, statistically valid research findings based on actual data about frauds. Previous research from other sources has had to rely on consumer victim reports, which are, by their nature, incomplete," said Stephen Coggeshall, ID Analytics' chief technology officer and the author of the research. "What's most meaningful about these findings is that they can help identify specific areas where identity criminals may be operating in an organized manner. We've actually analyzed the data down to the 5-digit zip code level which gives precise visibility into concentrations of identity fraud, which may indicate fraud rings or some other criminal activity."

The ten states with the highest rates of identity fraud are:

  1. New York
  2. California
  3. Nevada
  4. Arizona
  5. Illinois
  6. Hawaii
  7. Oregon
  8. Michigan
  9. Washington
  10. Texas

The ten states with the lowest rates of identity fraud are:

  1. Wyoming
  2. Vermont
  3. Montana
  4. North Dakota
  5. New Hampshire
  6. Ohio
  7. Maine
  8. Iowa
  9. West Virginia
  10. South Dakota

When examined at a 3-digit zip code level, the ten metropolitan areas with the highest identity fraud rates are:

  1. New York, NY
  2. Detroit, MI
  3. Los Angeles, CA
  4. Little Rock, AR
  5. Greenville, MS
  6. Atlanta, GA
  7. Phoenix, AZ
  8. Portland, OR
  9. Dallas, TX
  10. Springfield, IL

"This new data from ID Analytics is in line with what we've heard from the victims themselves, and from law enforcement," said Jay Foley, executive director of the Identity Theft Resource Center. "It's our hope that businesses will use this new research to further bolster their efforts in the fight against identity fraud, and that consumers living in these areas will be especially vigilant in protecting themselves." (Consumer education and resources can be found at the center's web site at www.idtheftcenter.org.)

Fraud rates were calculated based on the total number of reported identity frauds divided by the number of applications; as a result, the population density was scaled out, enabling comparisons among areas with differing populations. Applications in this analysis were submitted to credit grantors from January 2005 through June 2006. The addresses on the applications may belong to the victims of the identity fraud if the perpetrator were to use the complete and accurate identity information of the victim. However, based on prior research into the nature of "true-name identity theft" and "synthetic identity fraud," ID Analytics scientists believe the majority of the addresses are associated with the perpetrators of the fraud using synthetic identities of real and false identity elements. The research showed that identity theft victimizing an actual consumer (true-name identity theft) accounts for 10-15 percent of all identity fraud. Identity fraud using identities fabricated from real and false data (synthetic identity fraud) accounts for 85-90 percent of all identity fraud. While the applications include real addresses for the purposes of verification and receipt of credit cards and goods, the addresses may be residences, places of work or any other physical location where fraudsters can conveniently receive the tools and plunder of their trade.

A white paper with more detailed findings on the research can be obtained upon request by emailing marketinginfo@idanalytics.com.

About ID Analytics, Inc.

ID Analytics, Inc., the Identity Risk Management company, owns and operates the ID Network®, the nation's only real-time, cross-industry source for indentity information. ID Analytics' clients, which are also ID Network Members, span the financial services, telecommunications, e-commerce, healthcare, utility, retail, government, and consumer sectors. With an exclusive focus on stopping identity fraud, ID Analytics has built proprietary pattern recognition technology within the ID Network to find suspicious behavior patterns across multiple organizations and industries. As a result, ID Network Members lead their industries in preventing identity fraud, protecting consumers, and improving the consumer experience. ID Analytics is host of Identity 2007, the sixth annual Identity Risk Management conference Sept. 17-20. With headquarters in San Diego, Calif., ID Analytics has offices in the US and UK.

ID Analytics is a registered trademark of ID Analytics, Inc. All other trademarks and registered trademarks are the property of their respective holders.