Identity theft is when a criminal illegally obtains and uses an individual’s personal information such as their social security number and driver’s license number, for fraudulent purposes. Once Identity theft criminals gain access to this private information they will pose as that person usually to acquire credit, merchandise, or services.
There are two main types of identity theft, account takeover and true name ID theft. Account takeover identify theft is when a thief uses the stolen personal data to gain access to existing bank accounts. True name identity theft they will use the personal information to open new accounts, credit cards, and services.
The Internet provides these types of criminal with a perfect hunting ground. It’s extremely easy to target Internet users because of the vast accumulation of information as well as the effortlessness of performing a transaction without verification. Although recently the number of database hacking attacks has dramatically increased, most identity thieves still obtain our information from spying over our shoulders or digging through our trash.
According to a recent survey from Javelin Research and Strategy
“In 2010, identity theft and fraud claimed fewer victims than in any other period since Javelin began conducting surveys in 2003. Driving that decrease was the reduced rate of existing account fraud, although incidents of all types of fraud dropped from 2009. Meanwhile, consumer costs, the average out?of?pocket dollar amount victims pay, increased, reversing a downward trend in recent years. This increase can be attributed to new account fraud, which showed longer periods of misuse and detection and therefore more dollar losses associated with it than any other type of fraud.”
The survey also identified account takeover, friendly fraud, and improper use of privacy settings on social media networks to be the growing problems. Several other issues include people not shredding important documents, using weak online passwords, and neglecting to use anti-malware software. The survey found that 48% of the reported identity theft cases were initially identified by the consumers. This statistic clearly expresses the dire need for individuals to routinely monitor their accounts and financial statements.
Everyone should also protect themselves by requesting their credit reports. You can obtain your free credit report three times a year from Annual Credit Report.com. Consumers can request to view their credit report up to three times a year because there are three different Nationwide Credit Reporting Agencies Equifax, Experian, and Trans Union.
How Identity theft can occur Online:
On the Internet, we are made of a digital identity. This identity groups information like our IP address, physical address, usernames, passwords, personal identification numbers, social security numbers, birth dates, account numbers and other personal information. Hackers and identity thieves’ main goals are to obtain this information. The Internet makes it extremely easy for these criminals to trick people into unwittingly handing over their information rather than having to dig through their trash. Some of the techniques that hackers use to obtain out information are
- Phishing-
Phishing is when emails or websites falsely claim to be an existing organization that you do business with. These emails redirect users to websites that are created to look like the legitimate site. Users are then typically asked to update their personal information. Meanwhile the real company has no need to ask for updated information and you just supplied it all to a criminal. Be cautious of emails expressing urgency and avoid links or submission forms asking for financial information. Sensitive information like this should only be communicated using a secure webpage. (Learn more about protecting yourself against phishing!)
- Pharming-
Pharming is a more sophisticated version of phishing. With pharming a cyber-criminal creates a vulnerable spot in an Internet Service Provider’s DNS server and then hijacks the domain name of a commercial site. When people visit the legitimate website they are immediately redirected without knowing. Unsuspecting users will enter their login information as usual, only this time they will be providing it to the pharmers. The personal information gained can be used at the website to purchase merchandise, clean out bank accounts, or open new ones.
- Spam and Spyware-
Spyware is used to gather information like user ID’s or passwords. Once gathered it is then sent back to the intruder. Spyware can collect this information by logging keystrokes and using malware like Trojans. New malicious programs are created and discovered every day so it is important that you not only have Antivirus software but that you keep it up to date as well. Antivirus programs scan, track, and remove any problems from your hard drive. Anti-spyware programs can detect and eliminate any spyware that has made a home on your hard drive. Many Antivirus programs are bundled with an anti-Spyware.
Tips To Protect You From Identity Theft:
- Use your common sense.
- Check your credit reports.
- Check your bank statements.
- Compare your credit card charges against your receipts.
- Shred documents that contain personal information.
- Don’t carry unnecessary identification documents.
- Deposit outgoing mail at the post office on in a secure mailbox.
- Resist providing personal information unless you know that it is necessary.
- Watch out for phishing sites.
- Use an Anti-virus and Anti-malware software.
- Create strong and unique passwords for each website.
- Only shop at reputable websites.
- Only download software from reputable sources.
- Secure your wireless network.
What to do if you Suspect Identity Theft:
- Contact your credit card companies to notify them and request new account numbers.
- Contact your bank and request that an alert be placed on your account.
- Contact one of the three credit reporting bureaus and request that a fraud alert be placed on your file.
- Request a free credit report.
- Continuously monitor all of your accounts and credit reports.
- File an identity theft report with the local police or a State and Federal agency.
For more information visit The Effects of Identity Theft and The History Of Identity Theft!
Have a Great Day!
Dustin
