A new white paper measuring the impact of identity theft in the state of New Jersey was released today by CyberScout (www.identitytheft911.com), the recognized leader in identity theft victim resolution, defense, and education. The 12-page white paper, entitled "Analysis of Significant Identity Theft Trends and Crime Patterns in the State of New Jersey," reveals just how seriously this crime threatens New Jersey residents.

Key findings of the New Jersey study include the following:

• Identity theft in New Jersey increased by 36% over the past 2 years (FTC). 
• Nationwide, New Jersey ranked 15th per capita and 11th in absolute terms for identity theft in 2004 (FTC). 
• An estimated 300,000 New Jersey residents (3.5% of the population) were victimized in 2004. 
• Identity theft is broadly endemic in New Jersey and is not concentrated in metropolitan areas or large cities. 
• Identity theft cost New Jersey enterprises and victims nearly $2 billion and more than 14 million hours in victim resolution in 2004. 
• Nearly one household in ten (9.8%) was victimized in 2004. 
• Identity theft losses in New Jersey are 4.6 times higher than aggregate losses from burglary, larceny theft, and motor vehicle theft. 
• The most heavily victimized New Jersey cities include Trenton, with 14.6% of households; Newark (13.6%); and Jersey City (13.2%). 

"This research and recent high-profile data breaches underscore the urgent need for tough federal laws to reduce the national epidemic of identity theft," said Sen. Bill Nelson (D-FL), a sponsor of far-reaching legislation on identity theft, to Privacy Times. "Unless Congress acts quickly and boldly, Americans risk completely losing their privacy."
Privacy Times said the "potentially groundbreaking" CyberScout study "indicates that the crime could be spreading more misery to greater numbers than previously thought. The research findings were significant because experience has shown that when an individual becomes a victim of identity theft, the entire household often feels the effects, either because of economic loss, loss of time, or increased stress."

"Identity theft — the fastest-growing crime in America — is a form of financial terrorism, plain and simple," said Adam Levin, Chairman of CyberScout and former Director of the New Jersey Division of Consumer Affairs. "This extremely serious threat has American consumers deeply concerned about the safety of their personal information. As the public begins to ask questions — and, more importantly, to demand answers — they're looking to the businesses and institutions they trust to take proactive steps to protect them against this crime."

Some businesses and institutions are already responding to this threat on behalf of customers, families, and communities:

Affinity Federal Credit Union, based in Basking Ridge, New Jersey, recently announced that it is the first financial institution in the state of New Jersey to provide comprehensive identity theft education and victim resolution at no charge to its 115,000 members. Under the program, CyberScout's industry-leading victim resolution services will be available free to Affinity members. Members also have immediate and ongoing access to the nation's leading consumer education program on identity theft risks and defenses.

"Identity theft is a growing epidemic and of the highest concern to the American public and to Affinity's members," said David Snodgrass, Senior Vice President of Affinity Federal Credit Union. "At Affinity, our members come first, and they deserve the best. As a true partner and advocate for our members, we wanted to take action that would alleviate their concerns and enable them to focus on the truly important things in life. That's why we've partnered with industry leader CyberScout to provide identity theft education and victim resolution services to our members free of charge."

New Jersey Skylands Insurance Association has entered into a partnership with CyberScout that will make New Jersey Skylands the first automobile insurance company in America to provide identity theft victim resolution and proactive education to its member owners. CyberScout's victim resolution and education services will be available to all New Jersey Skylands Insurance Association members at no additional charge (New Jersey Skylands Insurance Association is a reciprocal exchange owned by its policyholders).
"We're proud of the trust policyholders have placed in us," said Alex Archimedes, President & CEO of New Jersey Skylands Management, LLC. "Living up to that trust means continually finding new and innovative ways to protect Skylands' members, while ensuring that the services the Association provides are the very best available. Partnering with CyberScout enables New Jersey Skylands to provide a safety net to all of its Association members against this rapidly growing threat."

Rutgers University administrators are moving to phase out the use of Social Security numbers (SSNs) as default student identifiers and strengthen protection against data and identity theft at the same time. As the university takes on the challenge of creating a new identification system for more than 50,000 students, Rutgers has partnered with CyberScout to make identity theft resolution and education available at no charge to students, faculty, and staff. The program became available to employees in July and becomes available to students in September. Rutgers is the first university in America to offer such a program. 

"This report is unique in that state-specific data has never been extrapolated from the national data collected and maintained by the FTC and other federal sources," noted
Steve Christenson, President of CyberScout. "The good news here is that a number of organizations in the state of New Jersey are stepping up to the plate and putting into place the appropriate infrastructure to educate and protect their customers, members, and employees against identity theft."

"It's also noteworthy," added Levin, "that many of the organizations CyberScout is working with in New Jersey — including Affinity Federal Credit Union, New Jersey Skylands, Rutgers University, Credit Union of New Jersey, MetLife Auto & Home, and many other leading businesses and institutions — are providing these services to their constituents free of charge. American consumers need help here and now in dealing with this epidemic. Addressing their needs first and foremost is essential for the fight against identity theft to succeed."