Penalties For Identity Theft: Restitution

Anyone who commits the crime of identity theft -- stealing another person's identifying information for financial gain – will likely be ordered to repay the victim for all the damage suffered. This remedy, known as ‘restitution’ is in addition to any jail sentences or fines that also may be imposed under state or federal laws.

Understand Restitution

A criminal court judge typically orders an identity thief to “make restitution,” that is, to repay the victim’s losses. The losses may be far more than the sums that were stolen or siphoned from the victim’s account; they also include the many expenses involved in chasing down the identity thief and fixing the identity theft problem. So, for example, if an identity thief empties a victim’s bank account, restitution would include not only the sums taken from the account but any interest that the money would have earned as well as the fees and costs incurred with fixing the problem at the bank.

In other words, restitution is more than the amount by which the thief profited from the theft; it is the amount that is required to restore the victim to where they would have been if the theft had not occurred. For example, it is estimated that “fixing” a typical identity theft issue involving a bank or credit card averages between $800 and $1000 and may take dozens of hours. (In one case, a couple spent over $15,000 to restore their financial reputation).

When determining restitution a judge will typically include these factors:

• The amount of money stolen from the company or the person
• The direct costs to the victim for fixing his or her credit problems
• The legal costs triggered by the thief
• Any costs the victim incurs associated with the criminal identity theft prosecution

Of course, an award of restitution does not always mean a payment to the victim. Many identity thieves squander or hide their ill-got gains and the victim has difficulty tracking or chasing them down. Restitution is an effective remedy, however, when a thief’s financial gains have been located or profits seized.

Getting Legal Aid

Those who are facing identity theft penalties, or the risk of conviction, should work with an attorney to minimize restitution awards and to scrutinize all costs associated with the theft. The attorney will provide guidance and resources, and if possible, assist in lowering or avoiding harsh penalties.