ID theft is a misnomer which is hurting the fight against fraud, according to encryption guru Bruce Schneier. Instead of talking about ID theft it’s better to talk about fraud due to impersonation, he claimed.
The crime exists because identifying information about a person is easy to steal and valuable once it is stolen. Schneier said that rather than focusing on making identity harder to steal it makes more sense to make information harder to use for criminal purposes. “The industry is going the wrong way in the US by worrying about keeping identity details secret. The focus should be on fraud. European countries, such as Holland [The Netherlands], are doing better than the US,” he said.