ILLINOIS IDENTITY THEFT #1 COMPLAINT ISSUE FROM CONSUMERS SAYS STATE ATTORNEY GENERAL SJ-R.COM - Identity theft tops complaints:

Identity theft tops complaints
Attorney general releases top 10 list for 2006

By ADRIANA COLINDRES
STATE CAPITOL BUREAU
Published Wednesday, January 31, 2007
Consumers complained to Illinois Attorney General Lisa Madigan’s office about identity theft more than they did about any other topic in 2006.

Identity theft for the first time captured the No. 1 spot on the yearly consumer complaint list that the attorney general compiles. Other complaints in the top 10 dealt with such subjects as credit, telecommunications and construction/home improvement fraud.

In a news release, Madigan also pointed to a disturbing new trend, saying her office received more than 700 mortgage-related complaints last year. While mortgage-related problems did not make the top 10 list of 2006 consumer complaints, last year’s figure represents more than double the number of mortgage-related complaints from 2005.

Of the 32,724 consumer complaints Madigan’s office received last year, 5,327 - or 16 percent - dealt with identity theft.

The fact that identity theft topped the 2006 list is not much of a surprise, said Deborah Hagan, chief of the consumer protection division in the attorney general’s office.

Hagan said Madigan’s office bolstered its efforts against identity theft last year, creating a consumer hot line that provides help to victims.

Consumers also have become increasingly aware of the threat of identity theft, so they are more likely to contact the attorney general if they suspect trouble, she said. For instance, consumers can become concerned about potential identity theft when they learn of a security breach that could make their personal information accessible to a thief.

“A lot of the calls to the identity theft hot line come there because of concerns about breaches,” Hagan said. “And when people call about breaches, what we do is tell them how to protect themselves in the future” to minimize potential damage.

One such breach became public in mid-January when The TJX Companies Inc. announced it had “suffered an unauthorized intrusion into its computer systems that process and store information related to customer transactions.”

A Jan. 17 company news release added: “This intrusion involves the portion of TJX’s computer network that handles credit card, debit card, check, and merchandise return transactions for customers of its T.J. Maxx, Marshalls, HomeGoods and A.J. Wright stores in the U.S.” as well as its stores in Canada and perhaps its stores in Europe.

The news release said TJX did not yet know “the full extent of the theft and affected customers.” A company spokeswoman could not be reached Tuesday.

Kim Daughton, vice president of branch administration at Springfield’s Marine Bank, said that in instances such as the TJX breach, Marine Bank notifies customers immediately and sends them replacement cards.

“We try to stay one step ahead,” she said. “We just stop (identity theft) before it gets started.”

Jay Foley, executive director of the California-based Identity Theft Resource Center, said identity theft has been the No. 1 complaint to the Federal Trade Commission for the past five years. Identity theft’s appearance as the top consumer complaint on the Illinois attorney general’s list is a good sign, he said.

“It means they’re getting the message out and consumers know where to turn,” Foley said.
Adriana Colindres can be reached at 782-6292 or Adriana.colindres@sj-r.com

Top 10 consumer grievances

1. Identity theft.
2. Credit-related, including about collection agencies, credit cards and credit reports.
3. Construction and home improvement fraud, including those related to remodeling, roofs and gutters.
4. Telecommunications, including wireless service and cellular phones, long-distance service and cable and satellite television.
5. Promotions and schemes.
6. Financial services.
7. Motor vehicles/used auto sales.
8. Mail order.
9. Business-to-business fraud.
10. Motor vehicle/non-warranty repair.