	Prevalence of Identity Theft Appears to be Growing

No single hotline or database captures the universe of identity theft victims. Each of these various sources or measures seems to indicate that the prevalence of identity theft is growing. Fraud alerts constitute a warning that someone may be using the consumer’s personal information to fraudulently obtain credit. In addition to drivers’ licenses, there are web-sites that offer birth certificates, law enforcement credentials (including the FBI), and Internal Revenue Service forms.”
Similarly, the SSA/OIG has noted that, “The ever-increasing number of identity theft incidents has exploded as the Internet has offered new and easier ways for individuals to obtain false identification documents, including Social Security cards.”

	Aliens Use Fraudulent Documents to Obtain Entry, Employment, and Other Benefits

Aliens and others have used identity theft or other forms of identity fraud to create fraudulent documents that might enable individuals to enter the country and seek job opportunities. At ports of entry, INS inspectors annually intercept tens of thousands of fraudulent documents presented by aliens attempting to enter the United States. Attempting to Obtain Other Benefits with Fraudulent Documents

Aliens have also attempted to use fraudulent documents or other illegal means to obtain other immigration benefits, such as naturalization or permanent residency. Alien Smugglers Use Fraudulent Documents

In addition to using identity theft or identity fraud to enter the United States illegally and seek job opportunities, some aliens have used fraudulent documents in connection with serious crimes, such as narcotics trafficking and terrorism.
What GAO Found

Identity theft involves "stealing" another person's personal identifying information, such as their Social Security number, date of birth, or mother's maiden name, and using that information to fraudulently establish credit, run up debt, or take over existing financial accounts. Another pervasive category is the use of fraudulent identity documents by aliens to enter the United States illegally to obtain employment and other benefits. The prevalence of identity theft appears to be growing. Moreover, identity theft is not typically a stand-alone crime; rather identity theft is usually a component of one or more white-collar or financial crimes. According to Immigration and Naturalization Service (INS) officials, the use of fraudulent documents by aliens is extensive, with INS inspectors intercepting tens of thousands of fraudulent documents at ports of entry in each of the last few years. These documents were presented by aliens attempting to enter the United States to seek employment or obtain naturalization or permanent residency status. Federal investigations have shown that some aliens use fraudulent documents in connection with more serious illegal activities, such as narcotics trafficking and terrorism. Efforts to combat identity fraud in its many forms likely will command continued attention for policymakers and law enforcement to include investigating and prosecuting perpetrators, as well as focusing on prevention measures to make key identification documents and information less susceptible to being counterfeited or otherwise used fraudulently.