Identity theft: An exploratory study with implications for marketers

Abstract

Identity theft is the fastest growing crime in America, and millions of people become victims each year. Furthermore, identity theft costs corporations over $20 billion per year, and consumers are forced to spend over $2 billion and 100 million hours of time to deal with the aftermath. This paper uses a system dynamics model to explore policy options dealing with identity theft and to provide implications for marketers. The results indicate that the current approach to combating identity theft will not work. However, inexpensive security freezes could be effective, because they result in a nonlinear reduction in identity theft that is similar to the “herd immunity” seen in epidemiology. Thus, identity theft can be addressed by protecting just a fraction of the total population.