Identity Theft

Identity theft is part of identity fraud, and specifically refers to the theft and use of personal identifying information of a person, as opposed to the use of a fictitious identity. This includes the theft and use of personal information of persons either living or dead.

Identity Fraud

Fraud is gaining a benefit by deception. Usually, but not always, such gains are financial. The cost of fraud is increasing both in Australia and internationally, and can be devastating to both business and individuals.

Normal transactions involve only 2 parties —you and the supplier. Identity fraud normally occurs when a third party uses deception to get a benefit. Identity thieves can appear like a legitimate customer and pass the procedures and tests that businesses and organisations use to verify clients' identities. This breach of procedure usually occurs in one of these ways:

• the creation and use of an entirely new fictitious identity for fraudulent purposes

• the unauthorised use of a identity stolen from a real person to gain a benefit.

Identity theft - how can it happen?

Identity theft happens in a multitude of ways. It can range from somebody using your credit card details illegally to make purchases over the internet or telephone, through to having your entire identity assumed by another person. This could be to open bank accounts, take out loans, make tax returns and conduct other business illegally in your name. Identity theft can happen easily. 

Most often you will not even know you are a victim until well after the event has transpired, along with this the perpetrator may be known to you personally.

What are the costs?

With the rise and spread of globalisation, identity fraud has become one of the fastest growing crimes in the world. The rapid development of new technologies, telecommunications and internet access, and the growth in trade and the deregulation of financial markets have extended the reach of international fraudsters.

Globally, false and stolen identities are being used in an expanding range of criminal and terrorist activities. The cost of identity fraud in Australia has been estimated at $1.1 billion for 2001-02. Although, this figure does not account the non-financial costs to organisations or victims, or undetected identity fraud. The figure therefore may be much higher.

How does a thief gain information?

Despite your best efforts, a determined thief may still be able to access your personal information. Here are some ways this can happen:

• Your wallet or purse contains personal information such as your licence, credit and ATM cards, Medicare card and other personal documents, that may be stolen.

• Your home is burgled and your personal information and documents, or those of close family members, may be taken.

• Many important documents are posted to you and can be stolen from your letterbox. For example, bank and credit card statements, new cheque books, ATM and credit cards, taxation returns or cheques, or pre-approved credit card offers. You may be unaware that these were sent to you if they do not arrive.

• Your mail may be diverted to another address. It is simple for a thief to use a false identity and fill in a change of address form.

• Your rubbish (or that of businesses you have dealt with) may be searched. Information found in the garbage could provide a thief with a head start in stealing your identity.

• You may be the victim of a scam and be conned into providing personal information over the telephone or by email.
  
  
• Your personal computer may be hacked into, or hackers may get into the computers of businesses that hold your personal information.
  
  
• Your ATM or Electronic funds transfer point of sale (EFTPOS) transactions may be monitored by hidden devices or seen by the person next in the queue. Your password or PIN may be noted for subsequent unauthorised use.
  
  
• Your personal information may be stolen and used or sold by employees of legitimate businesses: for example, credit card skimming at retail outlets or restaurants (Credit card skimming occurs when your credit or EFTPOS cards are secretly 'skimmed 'with a small device that copies the information on the card 's magnetic strip. Your information can then be transferred to a blank credit card to be used without your knowledge).

Preventing Identity Theft

• While it may never be possible to stop identity theft entirely, there are a number of very simple safeguards you can take to protect yourself from becoming a victim of this type of crime:
• Order a copy of your credit report regularly
• Place passwords on important accounts
• Secure your personal information
• Don't carry personal information unless you have to
• Destroy personal information before disposal
• Avoid giving personal information out over the phone, by mail, or on the Internet
• Secure your mail
• Check your billing and account records regularly
• Limit the amount of credit you have in accounts
• Write cheques and fill out forms carefully
• List all account details
• Remove your name from mailing lists

Secure computers

More and more people use computers and the Internet to communicate, store information, and conduct business. Your computer could be your weakest link in preventing theft of your identity. If you follow a few simple steps you can make identity theft via your PC more difficult:

• Use passwords
• Update your password
• Use the latest protection software
• Use a personal firewall to secure your PC when online
• Beware of unsolicited emails
• Do not follow up unsolicited emails
• Only conduct transactions with secure websites
• Wipe your hard drive
• Don't use public computers to access personal information

Action after the theft

Unlike other crimes, victims of identity theft may not know they are victims until weeks or months after the theft has occurred. Through what you do when you realise you are a victim of identity theft can minimise the damage and prevent further crimes being committed. This could be through:

• reporting to the police
• contacting the credit reporting agency
• reviewing your credit file carefully
• closing all accounts and correct your credit file
• keeping all documentation
• clearing criminal records

Article reproduced from http://www.crimereduction.gov.uk/theft1.htm