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September 1, 2005 — Record-setting gas prices have caused consumers to exercise caution when it comes to their credit situations, according to the latest Experian-Gallup Personal Credit Index. Gains made in August have been negated (and then some), with the Personal Credit Index falling 21 points to 77, the lowest level since establishing the benchmark level of 100 in March.
America's lack of confidence in September is illustrated by the fact that nearly half of the points in this month's decline (10 of 21) come from questions concerning consumers' perceptions on their abilities to meet current and future monthly payments. The numbers indicate they're also concerned with their ability to borrow more money, both now and in the near future.
Hot on the heels of last month's statistic that one in six Americans report being a victim of identity theft, comes this month's revelation: 21% of those whose personal or financial information was stolen say the theft was done by someone they know!
Exactly what constitutes identity theft, however, is not universally agreed upon. While identity theft is typically defined as the use of a victim's personal information to steal money, most consumers define it more generally - three-quarters of consumers feel that using a stolen credit card to purchase goods constitutes identity theft.
Identity Thieves Keep Busy
No matter how you define identity theft, once thieves have acquired your personal information, most of them don't just sit on it. Of those Americans who've had their bank or credit card numbers stolen:
- 62% report unauthorized charged purchases against their credit cards
- 54% report that thieves charged purchases against or withdrew money from their bank accounts
Roughly one in eight American adults (12%) report having other personal information like Social Security numbers, birth certificates, or driver's licenses stolen. Among these victims, nearly one in ten (9%) report having an unauthorized bank account set up in their name, and 15% report that a new credit card was established in their name.
Americans Remain Optimistic - But Alert
Despite the growing number of identity-theft cases, American consumers haven't thrown in the towel. Most consumers polled (66%) feel that identity theft can be thwarted, with only one in three (33%) taking a more fatalistic viewpoint that identity theft can't be prevented no matter what they do.
The majority of consumers also believe that identity theft isn't just something that happens to someone else. Fifty-four percent of the consumers polled disagree that it is "unlikely" they will personally become a victim of identity theft. They're willing to take measures to prevent it, too - 74% said they're willing to do more to protect themselves…if they only knew what to do.
Proactive Steps Taken by Consumers
So, what can the three out of four Americans who are willing to do more to protect themselves from identity theft do? Taking a look at what others are doing seems a good place to start. When asked specifically about what steps they're taking to fight identity theft, consumers responded with the following actions:
- 81% shred financial documents or credit card offers before throwing them away
- 52% regularly check their credit reports
- 46% have paid for anti-hacking software to protect their computers
- 19% have purchased a credit monitoring service
- 11% have paid for identity-theft insurance
About the Experian-Gallup Personal Credit Index
The Experian-Gallup Personal Credit Index is a monthly survey among a nationally representative sample of 1,000+ respondents, focusing on consumers' ever-changing attitudes and perceptions relating to their current credit situation and future expectations. Specific areas of inquiry include debt load, credit score, borrowing, and repayment ability. The survey's margin of error is +/- 3%.
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Personal Credit Index Careens to All-Time Low
Experian-Gallup Personal Credit Sputters to 77 - a 21-point dip since August 2005
- Reflects some Americans' rising fear over their inability to make their monthly payments and qualify for additional credit, both now and in the future
- The recent drop in consumer sentiment could also be driven by recent rises in gas prices
What Are Americans Doing to Protect Against ID Theft?
Specific Actions Taken to Prevent ID Theft
1-in-5 Instances of ID Theft Are Committed by Acquaintances
Relationship of ID Theft Perpetrator
(Based on Actual ID Theft Victims)
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