Six years after becoming a victim of identity theft, Honolulu resident Dave Thompson still isn't sure if he's through dealing with the fallout.

Thompson, 40, learned in early 2000 that someone had taken out a $17,000 home-equity loan in his name in Memphis, Tenn., a city he's never visited. Somehow, thieves had obtained his name, Social Security number and birth date and used the information to get the loan.

"It's been extremely expensive for me," said Thompson, who as recently as six months ago had to prove to a collection agency that he wasn't responsible for the debts. "It just went on and on and on."

The tally so far includes higher interest rates on a home purchase, a missed chance to refinance his house at rates that would have saved him $37,000, and time spent writing letters and sending faxes trying to clear his name.

Thompson is one of thousands of Hawai'i residents who've been hit by identity theft, a crime that encompasses activities ranging from the mundane, such as using credit cards after stealing a wallet, to the more technically sophisticated operations, such as those that hack computer systems to get sensitive personal information.

The crime has become commonplace, and victims seemingly are everyone, from college students to some of Hawai'i's most prominent citizens, including Judge John Lim, attorney Bill McCorriston and Hawaii Parent magazine publisher Charles Harrington.

"Everyone seems to know someone that's been victimized by identity theft," said state Office of Consumer Protection executive director Steve Levins, who has relatives who have been victimized.

Digging out from the theft depends on how long it goes undetected and its severity. Someone who reports a stolen credit card may take an hour to clear up problems, according to a survey for the Federal Trade Commission. Those with fraud that's gone undetected for months face a larger mountain to climb.

On average, victims spend 30 hours untangling problems, according to the same FTC survey. Overall, the survey determined about 10 million U.S. residents probably spent 297 million hours in 2003 calling credit card companies, banks, credit agencies and police — and dealing with collection agencies seeking payment on debt run up by thieves.

The average victim had out-of-pocket costs of $500, though much of this is incurred by people who learn too late that thieves have opened credit card accounts, taken out loans or used their information to pay for wireless phones or other services, according to the survey.

It's especially attractive to crystal methamphetamine addicts and others who view the theft as crimes that keep on giving, said Honolulu Police Department financial fraud Detective Dennis Yamashiro. He said some criminals steal the information for their own use, while others will trade it for drugs to small, informal theft rings that will make fake IDs and open credit accounts with someone else's identity.

"It's a lot less risky for them than breaking into cars," Yamashiro said.

In Thompson's case, the criminals were able to print up bogus checks and convince a finance company to make a loan. They bought tires, telephones and tried to buy a Volkswagen before an investigator at a Memphis credit bureau stumbled on his case. Suspicious, the investigator called Thompson's home and asked his wife why someone who lived in Honolulu was making purchases 4,300 miles away.

Thompson said he was buying a home at the time and couldn't lock in his mortgage while credit agencies sorted out the situation. Fortunately for Thompson, his mortgage broker also was a victim of identity theft and stood by him. Thompson finally got the loan, but not before mortgage rates had moved up to 6.6 percent from 6.4 percent.

While a pair of thieves eventually were caught and sent to prison, Thompson said, his problems continued. The Memphis loan had been turned over to a series of collection agencies.

While Thompson was able to convince each one that he wasn't responsible for the debt, he said, the agencies would then sell or transfer the case to another agency, forcing him to repeat the process of clearing his name. That prevented him from getting his mortgage refinanced when rates were at 5 percent, he said.

Thompson finally got through to a collection-agency officer, who agreed to expunge the case for good if he provided them with a police report. Six months ago, Thompson showed his three-inch thick document file to a Honolulu police officer, hoping the problem finally would be cleared from his credit report once and for all.

"It was horrible," Thompson said.

Levins, of the state consumer protection office, recommends people file a police report as part of a paper trail to show they weren't responsible for transactions linked to identity theft.

If collection agencies get involved, "they want some sort of report that there's an investigation going on," said Yamashiro of the Honolulu Police Department.

Levins said other steps include calling credit card companies, credit reporting agencies and each of your creditors' fraud departments. Along the way, write a letter to whoever you spoke with, confirming the details of the conversation and what they said they'd do about your identity theft report, he said.

Dealing with the aftermath "can be extremely aggravating," Levins said.

"It can take some people several months, some several years."

Levins said Hawai'i consumers may get more help in the future if a package of bills proposed by Gov. Linda Lingle and law enforcement officials to fight the fraud are enacted.

These include freezing the release of credit reports of identity theft victims unless they consent, something that should prevent thieves opening new credit card accounts without the victim knowing.

Another bill would require companies to notify individuals that their personal information has been compromised, while a third measure would require local businesses to establish security procedures for storing customer data.

Distribution of Social Security numbers, the most common identification number used in storing consumers' personal information, would be limited under another proposed law.

The crime that keeps on taking can continue to drain victims even after thieves are caught

Reach Greg Wiles at gwiles@honoluluadvertiser.com.