This case involves the ID theft of numerous individuals after a major insurance company suffered a massive spyware breach of its customer databases, allowing sensitive personal information including social security numbers to be compromised. A large portion of individuals who had information accessed as a result of the breach reported fraudulent lines of credit, loans, and tax returns being filed in their name. It was alleged that the insurance company failed to take adequate data management measures to prevent a breach of this magnitude, and that the losses sustained by individuals affected by the breach should be compensated by the firm.
Question(s) For Expert Witness
- 1. Please provide information regarding your experience and expertise in identity theft.
Expert Witness Response E-061146
I have 24 years’ experience in the FBI including 18 years of white collar crime experience investigating identity theft matters and supervising the Financial Crimes Program and the Identity Fraud Task Force. My post FBI experience includes running a Background Screening business and providing identity fraud subject matter expertise for corporate clients including Guaranteed Rate Mortgage. In calculating the financial impact of identity theft on victims I would utilize information and statistical data from the Department of Justice and other sources to include my professional background. A starting point for determining loss would include DOJ statistics reflecting the following: Financial losses for victims experiencing ONLY ONE successful identity theft are reflected in the mean aggregates below: Direct Loss $1349.00 Direct out of pocket loss $3931.00 Indirect Loss $503.00. The numbers above would change by factoring in the following: diminished credit score, impacted mortgage rate, auto and insurance premiums, and the long-term cumulative impact could be thousands of dollars.