Identity theft is the nation’s greatest safety fear, cited as the top concern by 43% of adults in the research from American Express Insurance Services. Anxiety about the crime has nearly doubled since this time last year, when just 22% ranked it as their number one fear.

The study showed that small business owners and young adults are particularly worried about having their identities stolen.

Burglary is still a significant security fear, with more than one in three adults naming it as their top concern. Vandalism is also a perceived threat, with respondents more anxious about their cars being attacked than their homes or neighbourhoods.

Chris Rolland, head of American Express Insurance Services, said: “As fast-paced working life drives more people to rely on technology in the way they manage their lives, so the safety landscape is changing and ID theft is becoming a bigger issue year on year.”

The Denver Post reports that the Division of Motor Vehicles put 3.4 million Coloradans at risk of identity theft due to flaws in the way driver’s-license information is handled.

At an interim transportation committee hearing, it was revealed that the DMV regularly sends large batches of personal information over the Internet without encryption and has failed to properly limit access to its database, according to a recent audit. At one point, 33 former DMV employees could access names, addresses, dates of birth and Social Security numbers — some workers more than a year after their departure.

Revenue Department leaders who oversee the division say they are working to hire internal watchdogs and build up their technological defenses.

But the state, facing a budget shortfall, will have no additional money in the foreseeable future for new computer systems. Auditors said the division must better ensure that its employees know how to spot fake documents, don’t fraudulently issue IDs, deactivate the licenses of the deceased and perform checks of applicants’ immigration status. And while the state checks employee backgrounds for crimes committed in Colorado, it does not look at other states or federal crimes.

According to Bloomberg News, tax-related identity theft grew more than seven times over four years. And a new report suggests that efforts by the Internal Revenue Service to deal with problem are further hurting victims.

Nina Olson,a National Taxpayer Advocate, said in a report to Congress that identity theft is one of the biggest problems facing taxpayers today. She said her office handled 644 percent more cases in fiscal 2007 than in fiscal 2004 as crooks used stolen Social Security numbers to seek fraudulent refunds or employment.

Efforts by the IRS to combat the problem have resulted in delayed or frozen refunds for legitimate taxpayers or collection actions such as liens and levies. The IRS also has trouble preventing income, and tax liability, earned by workers using stolen Social Security numbers from being allocated incorrectly to the real owner of the number.

“While the IRS is reforming some aspects of its approach to identity theft, its procedures for dealing with victims have been a significant part of the problem,” Olson said in the 156-page report released by the IRS today. The mid-year report is one of two required by law.

Olson also said the IRS must do a better job educating taxpayers about rules for avoiding taxes on forgiven debt.

According to Internet Business Law Service, the Federal Trade Commission plans to study the experiences of identity theft victims by conducting a survey of consumers who contacted the FTC after they were victimized.

The proposed survey will examine the remedies available to victims under the Fair and Accurate Credit Transactions Act of 2003 (FACT Act). Among other things, the FACT Act gave consumers the right to place fraud alerts on their credit files if they are, or suspect they may become, victims of identity theft; block information on their credit reports that resulted from identity theft; and obtain copies of their credit reports free of charge. The survey will seek information from identity theft victims who contacted the FTC between January 1 and May 30, 2008, and will inquire about their experiences when they contacted one or more credit reporting agencies and when they sought to use their FACT Act rights. The survey results will help guide the FTCՉ۪s efforts to enforce the law and educate consumers and the consumer reporting industry about their rights and duties.

The study is being carried out pursuant to a recommendation by the President’s Identity Theft Task Force in its Strategic Plan. Information about the Task Force is available at www.idtheft.gov.

Reuters reports that Canadians distrust stores that ask them for personal information, showing greater awareness of the dangers of identity theft.

One in two people surveyed by the Office of the Privacy Commissioner of Canada said they questioned a retailer’s request for information such as a phone number or postal code, asking why it was necessary and how it would be used.

“Our personal information is increasingly invaluable in the marketplace, and I am very pleased to hear that consumers are taking charge and questioning requests for their information,” said Privacy Commissioner Jennifer Stoddart.

Forty-five percent said they had refused to hand over any information whatsoever and 13 percent deliberately gave false information.

Safety and security concerns were the top reason for protecting personal information, the survey found. Some consumers said they simply worried about how the information might be used while others expressed concerns specifically about identity theft, fraud and computer hackers.

Privacy officials aim to use the poll results to boost awareness among shoppers and retailers of Canada’s privacy laws.