Identity Theft...Is There Anyone to Blame?

Everywhere you look you see news on identity theft. How it's growing, what to do to prevent it, how criminals access our information, but there is one big thing that is overlooked.

Why is identity theft so common and easy for thieves to commit?

There are all kinds of identity theft, but the most common form is credit fraud. I think our access to credit is one of the reasons why identity theft is growing.

In the 1980's the government deregulated many industries and the financial industry benefitted from these new laws. Deregulation basically means the government eases up on policies and restrictions that govern people or businesses.

As a result, the financial industry, in this case, the credit industry was able to reach customers like never before. Prior to this deregulation, the government actually had laws which restricted mass mailings of credit cards to consumers. Can you imagine how little mail you would receive if this were the case today?

Any credit card today comes with a couple unique features. Special low introductory interest rates, points you can use to buy things, 0% for balance transfers, to name a few. These were born in the eighties, after the deregulation took place.

After having success with such a new and attractive product, the credit companies became more liberal in their application process. Giving people more access to money was a good way to grow the credit business.

Today, as a result we get probably hundreds of mailings each year telling us we've been pre-approved for this credit card or that credit card. Sure, its nice to know that access to money is available if you use it properly. But with such a widespread access to easy credit, its no wonder credit fraud is so popular.

All someone has to do is get your personal information like your social security number, address, birthdate, go online and fill out an application. Obviously Im simplifying the process, but you get the idea.

Im all for capitalism and free enterprise, but I bet in the 1970's with the government keeping a tight leash on the credit industry, identity theft was probably nonexistent, consumer debt was low, and mailboxes had a lot more space due to the lack of credit offers.

Of course there are many reasons and ways to steal someone's identity, and ultimately the thief is the only person to blame, but with easy access to credit these days the thieves sure have a lot more options.

Always keep a close eye on your credit report to prevent credit fraud and consider opting out of pre-approved credit offers. For more information on identity theft prevention check out our page on prevent identity theft.