This chapter outlines components of a strategy for government and a conceptual identity fraud enterprise management framework for organizations to manage identity crime occurring via cyberspace. Identity crime, related cybercrimes and information systems security breaches are insidious motivators for governments and organizations to protect and secure their systems, databases and other assets against intrusion and loss. Managing identity crime is a critical step in cyber security and global information assurance. Strategy components and conceptual model elements are constructed through analysis and synthesis of models from academic literature, and reports by industry and government professionals. A comprehensive government strategy with a legislative component reinforces organizational policies to combat identity crimes. Model components used to develop our identity fraud organizational framework were selected from cost of identity fraud, identity risk management, identity fraud profiling, and fraud risk management literature. Our framework is organized into anticipatory, reactionary and remediation phases.
TopIntroduction
Identity crime and related crimes, cybercrime and information systems security breaches are insidious motivators for governments and organizations to protect and secure their systems, databases and other assets against intrusion and loss. The economic cost to society and more directly to enterprises provides significant impetus for a comprehensive framework for organizations to prevent and combat the growth of identity and related crimes. Table 1 shows the estimated economic impact of identity crime and related crime costs. For example, the accumulated losses caused by identity crime and related crimes, such as money laundering, terrorism, trafficking – drugs, people, weapons, illicit material, etc., globally were estimated at US$221 billion by the end of 2003 and up to US$2 trillion by the end of 2005 (Hurley & Veytsel, 2003). Approximately half of the estimated global cost could be attributed to money laundering alone (see KPMG, 2007).
Table 1. Summary of identity crime costs (figures are in billions in stated currency)
| Country (or Region) | Year | Economic Impact of Identity Crime (billions) | Source |
| Global | 2005 | US$2,000.0 | Hurley & Veytsel, 2003, p.1 |
| 2003 | US$221.0 | Hurley & Veytsel, 2003, p.1 |
| United States | 2008 | US$45.3 | Kim 2008, p.21* |
| 2007 | US$51.0 | Kim 2008, p.21* |
| 2006 | US$57.7 | Kim 2008, p.21* |
| 2005 | US$57.4 | Kim 2008, p.21 |
| 2003 | US$56.0 | Kim 2008, p.21 |
| 2002 | US$48.0 | Foley & Foley 2003, p.27 |
| United Kingdom | 2006 | £1.7 | UK Home Office 2006, p.4 |
| 2002 | £1.3 | The Fraud Advisory Panel, 2003, p.1 |
| Canada | 2002 | C$5.0 | Brown & Kourakos 2003, p.12 |
| Australia | 2007 | A$1.0+ | Australian Bureau of Statistics 2008, p.1 |
| 2002 | A$1.1 | Cuganesan & Lacey 2003, p.55 |
| South Africa | 2007 | Rand1.0# | Joseph 2008, p.1 |
| The Netherlands | 2006 | Euro5.0 | Model Criminal Law Officers’ Committee 2008, p.13 |
# Estimate based on first 3 months of 2008 figure of 276 million Rand by Alexander Forbes Insurance.
* Three-year moving average - original amounts are US$40 (2008), $36 (2007), and $60 (2006) billion.
+ This amount also aggregates costs from lotteries, pyramid schemes, financial advice, and other scams.
Note there may be gaps in years between estimates gathered for some countries.