Online giants go to war against ID thieves

Global businesses struggling to find an answer to the growing problem of ID theft mounted a united offensive against online fraudsters this week.

The Coalition on Online Identity Theft includes Amazon.com and eBay - two of the Internet's most commonly defrauded companies - with Microsoft in tow.

Online security services, including VeriSign and the credit card provider Visa will also join in the fight.

The "coalition" - overseen by the Information Technology Association of America (ITAA) - is tasked with:

• expanding public education campaigns;
• promoting technology and tips for preventing and dealing with online theft;
• documenting and sharing non-personal information about emerging online fraudulent activity to prevent future scams; and,
• working with governments to ensure effective enforcement of criminal penalties against cyber thieves.

Rip-off Britain

Britain has been hit especially hard by organised online ID theft.

In the UK last month, the Fraud Advisory Panel (FAP) - an independent non-governmental organisation - warned the growing problem of identity fraud is costing the UK economy a massive £1.3bn per year.

It said the number of identity thefts in Britain rose from 27,270 in 2001 to 42,029 last year, costing victims about £62.5m.

The Home Office says it takes an average of 300 hours for victims of identity fraud to reverse the damage done.

Global epidemic

The US-based Internet Fraud Complaint Centre (IFCC) website reported more than 75,000 Internet users contacted them in 2002.

The IFCC said it referred more than 48,000 of those complaints of fraud, with the total loss from cases put at $54m, up from $17m in 2001.

US-analysts TowerGroup say identity theft, reportedly America's fastest rising crime, cost US lenders at least $1bn last year.

The methods used by online fraudsters to separate users from their cash are becoming increasingly unscrupulous and complex, TowerGroup warned.

In March, the online jobs board Monster warned users of fake job postings, set up to steal applicants' personal information.

Monster sent out an email to users confirming fraudulent job positions were being posted and reminding users never to reveal social security, credit card or non work-related information to potential employers.

"Regrettably, from time to time, false job postings are listed online and used to illegally collect personal information from unsuspecting job seekers," the email said.