Identity theft: An exploratory study with implications for marketers

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jbusres.2007.11.012 Byline: Eric M. Eisenstein Keywords: Identity theft; System dynamics; Security freezes Abstract: Identity theft is the fastest growing crime in America, and millions of people become victims each year. Furthermore, identity theft costs corporations over $20 billion per year, and consumers are forced to spend over $2 billion and 100 million hours of time to deal with the aftermath. This paper uses a system dynamics model to explore policy options dealing with identity theft and to provide implications for marketers. The results indicate that the current approach to combating identity theft will not work. However, inexpensive security freezes could be effective, because they result in a nonlinear reduction in identity theft that is similar to the 'herd immunity' seen in epidemiology. Thus, identity theft can be addressed by protecting just a fraction of the total population. Author Affiliation: The Johnson Graduate School of Business, Cornell University, 321 Sage Hall, Ithaca, New York 14853 USA Article History: Received 1 March 2007; Revised 1 August 2007; Accepted 1 November 2007 Article Note: (footnote) [star] I thank Charles Nicholson, Peter Otto, George Richardson, and the participants of the System Dynamics and Marketing Strategy workshop held at Cornell University in May of 2007 for their insightful comments, suggestions, and aid in model development. This research was funded by Cornell University.