Cyber Identity Theft: A Conceptual Model and Implications For Public Policy

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Cyber Identity TheftA Conceptual Model and
Implications For Public Policy

• Angeline G. Close, UGA/NGCSU
• George M. Zinkhan, UGA
• R. Zachary Finney, NGCSU

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A 1957 Sylvester Tweety Cartoon
Image source davemackey.com
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Identity Theft

• Most common classification of consumer complaints
  to FTC (42)
• Victimization costs beyond
• Growing problem attributed to the emergence of
  the e-marketplace
• Top online fraud (FBI 2003)
• Re-appraisals of research public policy are
  needed

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Cyber Stalkers Laughing Behind the ScreenFor Now
Image Source greenberg-art.com
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Objectives

• 1) Introduce 3 classification schemes, which
  synthesize conceptualizations of ID theft and the
  Internet a) methods, b) time-frame, c) victims
  behavioral responses
• 2) Recognize key issues regulations related to
  public policy and consumer welfare

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Cyber ID Theft Defined

• Online or electronic acquisition of personal
  information with the purpose of utilizing such
  information for deceitful activity either on the
  Internet or offline
• Using electronic (i.e., web-based) means to carry
  out any form of identity theft

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Cyber Identity Theft An E-Merging Public Policy
Issue
Process
Victim Response
Schemes
Time-Frame
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Cyber ID Theft Process
       
       
Table 2 Victim Reacts
Figure 2 (lower) ID Theft Recurs
Cyber- Identity Theft


Table 3 Public Policy Issues
Figure 2 (Upper) ID Theft Does Not Recur
Table 1 Methods of Cyber- ID Theft
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Cyber ID Theft Schemes Broad Scope
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Cyber ID Theft Schemes Narrow Scope
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Cyber ID Theft Schemes Narrow Scope
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Cyber ID Theft Time Frame
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Cyber- ID TheftVictim Response
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An Atypical Response
Image Source glasbergen.com
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A More Extreme ResponseSerious Password Strategy
Image Source glasbergen.com
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Public Policy Consumer Welfare

• Dissemination of cyber identity theft methods
• Employee access to data and associated potential
  for misuse
• III. Credit-reporting bureaus
• IV. The inherent difficulty associated with
  proving you did not commit acts

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Public Policy Consumer Welfare

• Regulation of data exchanges
• Uses of marketing databases
• VII. Use of data by financial institutions
• VIII. Liability issues
• IX. Assisting cyber identity theft victims

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Public Policy Consumer Welfare

1. Expanding public education/ awareness
2. Educating the populace so that overall crime
   rates decline
3. Effective criminal enforcement
4. Risk analysis risk assessment
5. What are the specific costs for consumers?

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Public Policy Consumer Welfare

• XV. What are the costs for business (at the firm
  level and the industry level)? What are the
  threats to our economic system?
• XVI. What are the best ways to promote safety
  tips and improved technologies?
• XVII. What are the best media for implementing
  education or remedial programs?
• XVIII. What are the best ways to reform
  identify thieves?

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Regulation

• The Identity Theft and Assumption Deterrence Act
  (governmental)
• 1) allows victims of identity theft to recover
  financial damages
• 2) imposes criminal penalties of lt15 years
  imprisonment fines of lt 250,000
• 3) directs the FTC to enforce the act

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Regulation

• The Coalition on Online Identity Theft
  (corporate-based)
• 1) expands public education campaigns, promoting
  technology and tips for preventing and dealing
  with online theft
• 2) documents and shares non-personal information
  about emerging online fraudulent activity to
  prevent future scams
• 3) works with the government to ensure effective
  enforcement of criminal penalties against cyber
  thieves

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Information Paradox
Image Source glasbergen.com
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Cyber ID Theft and the Market

• A threat to economic systems, e-commerce-
  demanding scholarly, practitioner and regulatory
  attention/ action
• Citibanks ID Theft Page
• TV Campaign 

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Reclaim Cyberspace

• A broader change in human identity
• Another paradox of technology
• Researchers have an important role to play in
  suppressing cyber-identity theft in the future.
• Reclaiming cyberspace as a means of enhancing and
  enriching (our own) human experiences