ID-Theft Victimizing Family Members and Relatives

A female cashier (39) working for a grocery in Kimhae City, South Kyungsang Province received a phone call from a credit card company last October. She was told that her credit card payment was overdue and outstanding. Later, she got to know that her husband Kang, who had been unemployed, took out 10 credit cards in her name. Then, he went on a shopping and drinking spree, using the cards. He had paid for bills by taking out cash advances. So far, he has run up bills worth 50 million won (approximately $42,000).

His wife reported his husband to the police on January 9, saying, "He did the same 5 years ago, putting me on the black list and, thereby, rendering me unable to make financial transactions. Two years ago, I got to pull myself off the list. I think I`m going through the same nightmare. I want to teach him a lesson."

Another lady, Mrs. Chung (41), is also in a similar dilemma. She got victimized by her sister-in-law in an ID-theft case. Her sister-in-law, using her social security number and other personal information, has run up bills amounting to fifteen million won. Now, Mrs. Chung is pondering over whether to bring a formal charger against her sister-in-law.

The credit car debt also motivated the bomb suspect who threatened to detonate bombs in the CGV cinema malls. While threatening to blow up the cinema malls to clear out 60 million won in debt, he got arrested on Thursday. These days, credit card debt has emerged as the "culprit" that is shattering our society and families into pieces. Pushed up against the wall, people steal the ID`s of their relatives or spouses. In other cases, debtors, using social security numbers of their family members, take out credit cards and go on a shopping and drinking spree. Thereby, the trust among family members has been on the verge of collapse.

A leading credit card company confirms that more 60% of the ID-theft claims filed with it were due to the misuse of the personal information by victim`s family member or relative. Another credit card company`s official also confirmed, "Most of the ID-theft cases are being committed by family members and relatives."

Consumers` Union of Korea (CUK), a consumer protection body, reportedly receives more than 30 phone calls a month seeking consultation and advice for their relatives` and family members` unauthorized use of the personal information.

A senior employee of a legal consulting firm said, "About 3-4 people call in and confess that they are considering getting a divorce due to the heavy credit card debt of their spouses. The problem is that the number is on the rise."

CUK`s senior official Doh Young-sook worries, "It was unthinkable only a year ago. It`s like we are now unable to believe in our own family members due to the credit card debt."

Secretary General Suk Sueng-uk of Citizens` Coalition for Credit Society diagnoses, "In dire situations, debtors are allured to take out credit cards in their family members` or relatives` names."

According to the Korea Non-bank Financial Association, South Koreans have taken out about 52.3 trillion won (approximately $443.5 billion) worth of cash advance as of last September. Out of the total, 483 billion won is overdue and outstanding. In the meanwhile, the Korea Federation of Banks has tallied that, as of December of 2002, approximately 1.5 million people have been officially pronounced insolvent due to various forms of credit card debt. Most of them, or 1,293,451 people, have more than 10 million won (approximately $8,300) in debt.

Sung-Kyu Kim kimsk@donga.com