Identity theft (or identity fraud, iJacking) occurs when someone wrongfully acquires or uses another person’s personal data, typically for their own financial gain. Sometimes it is referred to as “identity fraud” since the criminal impersonates rather than ‘removes’ the victims identity.
Most commonly, this term is used in relation to credit card fraud although mortgage fraud and other kinds of financial fraud are common. Less commonly, it is used to enable illegal immigration, terrorism or espionage. It may also be a means of blackmail if activities undertaken by the thief in the name of the victim would have serious consequences for the victim.
Techniques for obtaining information include :
stealing mail or rummaging through rubbish (dumpster diving in the USA)
eavesdropping on public transactions to obtain personal data (shoulder surfing)
stealing personal information in computer databases
infiltration of organizations that store large amounts of personal information
impersonating a trusted organisation in an electronic communication (phishing)
Spam (electronic): Some, if not all Spam requires you to respond to alleged contests, enter into “Good Deals”.
Identity theft is not possible without serious breaches of privacy. If corporate or government organisations do not protect consumer privacy, client confidentiality and political privacy the execution of identity theft becomes much easier for criminals.
Surveys in the USA from 2003 to 2006 showed a decrease in the total number of victims but an increase in the total value of identity fraud to US$56.6 billion in 2006. The average fraud per person rose from $5,249 in 2003 to $6,383 in 2006.
The 2003 survey from the Identity Theft Resource Centre found that :
Only 15% of victims find out about the theft due to a proactive action taken by a business
The average time spent by victims resolving the problem is about 600 hours
73% of respondents indicated the crime involved the thief acquring a credit card
The emotional impact is similar to that of victims of violent crime.
In a widely publicised account, Michelle Brown, a victim of identity fraud, testified before a U.S. Senate Committee Hearing on Identity Theft. Ms. Brown testified that : “over a year and a half from January 1998 through July 1999, one individual impersonated me to procure over $50,000 in goods and services. Not only did she damage my credit, but she escalated her crimes to a level that I never truly expected: she engaged in drug trafficking. The crime resulted in my erroneous arrest record, a warrant out for my arrest, and eventually, a prison record when she was booked under my name as an inmate in the Chicago Federal Prison.”
In Australia identity theft was estimated to be worth between AUS$1billion and AUS$4 billion per annum in 2001.
In the United Kingdom the Home Office reported that identity fraud costs the UK economy £1.7 billion although privacy groups object to the validity of these numbers, arguing that they are being used by the government to push for introduction of national ID cards.
Confusion over exactly what constitutes identity theft has lead to claims that statistics may be exaggerated.
The following precautions are recommended by the US Federal Trade Commission:
Shred documents and paperwork which contain personal information before you discard them.
Don’t give out personal information unless you know who you are dealing with.
Never click on links in unsolicited emails; instead, type in a web address which you know
Use firewalls, anti-spyware, and anti-virus software to protect your home computer;
Don’t use obvious passwords like your birth date or your mother’s maiden name
Keep your personal information in a secure place at home
Be alert for discrepancies in your financial bills and statements and query them immediately
Report fraud as soon as you detect it
The following have also been recommended:
Collect delivered postal mail as soon as possible.
Use reliable ATM’s at reputable sites only.
Look for any suspicious attachments to an ATM and if in doubt, do not use the ATM but report the problem.
Be aware of your surrounding when using an ATM. Hide what you type on a keypad from others.
Limit the amount of personal information you publish on the web.
When shopping online, make sure the company is reputable and displays an approved security symbol.
When handing over your credit card, do not let it out of your sight.
If you are traveling, tell the post office to hold your mail until your return or have someone you trust collect it
The following are specific to the USA :
Protect your Social Security number. Don’t carry your Social Security card in your wallet or write your Social Security number on a check. Give it out only if absolutely necessary or ask to use another identifier.
Don’t order checks pre-printed with your driver’s license or social security number.
Don’t carry your social security card unless absolutely needed. In states where your driver’s license number is your social security number, be equally careful about who sees your license.
Freeze your credit, if available in your state so that no one can open any form of credit in your name.
Request your own credit report each year and check the reports for inaccuracies and new lines of credit issued that you did not request.
Identity Theft
Identity theft (or identity fraud, iJacking) occurs when someone wrongfully acquires or uses another person’s personal data, typically for their own financial gain. Sometimes it is referred to as “identity fraud” since the criminal impersonates rather than ‘removes’ the victims identity.
Most commonly, this term is used in relation to credit card fraud although mortgage fraud and other kinds of financial fraud are common. Less commonly, it is used to enable illegal immigration, terrorism or espionage. It may also be a means of blackmail if activities undertaken by the thief in the name of the victim would have serious consequences for the victim.
Techniques for obtaining information include :
stealing mail or rummaging through rubbish (dumpster diving in the USA)
eavesdropping on public transactions to obtain personal data (shoulder surfing)
stealing personal information in computer databases
infiltration of organizations that store large amounts of personal information
impersonating a trusted organisation in an electronic communication (phishing)
Spam (electronic): Some, if not all Spam requires you to respond to alleged contests, enter into “Good Deals”.
Identity theft is not possible without serious breaches of privacy. If corporate or government organisations do not protect consumer privacy, client confidentiality and political privacy the execution of identity theft becomes much easier for criminals.
Surveys in the USA from 2003 to 2006 showed a decrease in the total number of victims but an increase in the total value of identity fraud to US$56.6 billion in 2006. The average fraud per person rose from $5,249 in 2003 to $6,383 in 2006.
The 2003 survey from the Identity Theft Resource Centre found that :
Only 15% of victims find out about the theft due to a proactive action taken by a business
The average time spent by victims resolving the problem is about 600 hours
73% of respondents indicated the crime involved the thief acquring a credit card
The emotional impact is similar to that of victims of violent crime.
In a widely publicised account, Michelle Brown, a victim of identity fraud, testified before a U.S. Senate Committee Hearing on Identity Theft. Ms. Brown testified that : “over a year and a half from January 1998 through July 1999, one individual impersonated me to procure over $50,000 in goods and services. Not only did she damage my credit, but she escalated her crimes to a level that I never truly expected: she engaged in drug trafficking. The crime resulted in my erroneous arrest record, a warrant out for my arrest, and eventually, a prison record when she was booked under my name as an inmate in the Chicago Federal Prison.”
In Australia identity theft was estimated to be worth between AUS$1billion and AUS$4 billion per annum in 2001.
In the United Kingdom the Home Office reported that identity fraud costs the UK economy £1.7 billion although privacy groups object to the validity of these numbers, arguing that they are being used by the government to push for introduction of national ID cards.
Confusion over exactly what constitutes identity theft has lead to claims that statistics may be exaggerated.
The following precautions are recommended by the US Federal Trade Commission:
Shred documents and paperwork which contain personal information before you discard them.
Don’t give out personal information unless you know who you are dealing with.
Never click on links in unsolicited emails; instead, type in a web address which you know
Use firewalls, anti-spyware, and anti-virus software to protect your home computer;
Don’t use obvious passwords like your birth date or your mother’s maiden name
Keep your personal information in a secure place at home
Be alert for discrepancies in your financial bills and statements and query them immediately
Report fraud as soon as you detect it
The following have also been recommended:
Collect delivered postal mail as soon as possible.
Use reliable ATM’s at reputable sites only.
Look for any suspicious attachments to an ATM and if in doubt, do not use the ATM but report the problem.
Be aware of your surrounding when using an ATM. Hide what you type on a keypad from others.
Limit the amount of personal information you publish on the web.
When shopping online, make sure the company is reputable and displays an approved security symbol.
When handing over your credit card, do not let it out of your sight.
If you are traveling, tell the post office to hold your mail until your return or have someone you trust collect it
The following are specific to the USA :
Protect your Social Security number. Don’t carry your Social Security card in your wallet or write your Social Security number on a check. Give it out only if absolutely necessary or ask to use another identifier.
Don’t order checks pre-printed with your driver’s license or social security number.
Don’t carry your social security card unless absolutely needed. In states where your driver’s license number is your social security number, be equally careful about who sees your license.
Freeze your credit, if available in your state so that no one can open any form of credit in your name.
Request your own credit report each year and check the reports for inaccuracies and new lines of credit issued that you did not request.