Identity theft - also know as identity fraud, ID theft and ID fraud - is fraud perpetrated by a criminal who assumes someone else’s identity in order to profit illegally.
There are different types of identity theft - but in simple terms, someone pretends to be you in order to sign up for goods and services in your name - or they may simply use your details to access your already existing bank and/or credit card accounts.
You will probably be completely unaware of this until you receive a bill for something you haven’t ordered or your credit card statement arrives with a number of high value purchases of which you have no previous knowledge.
While 80% of Americans who use the internet, make financial transactions online, which give hackers a lot of opportunity to exploit there skill, there is still widespread concern with becoming a victim of on line fraud and Identity theft.
Surveys within the last twelve months, 9.3 million Americans were victims of identity theft.
How does identity theft occur?
Identity thieves can steal your personal information directly of in directly. Most thieves still obtain personal information through traditional rather than electronic channels. In the cases where the method was known, 68.2% of information was obtained off-line versus only 11.6% obtained online.
a. Stealing your personal belongings like wallet and purses, containing identification cards, bank information or credit cards.
b. Hacking into email accounts, or into social networking sites wherein your personal information can be accessed easily.
c. Complete “change of address” forms to divert mail to other locations.
d. Through bank and credit card statements, pre-approved credit cards, telephone calling cards and tax information.
e. The Scamsters can also obtain your credit report by posing as a landlord, employer who someone else who might have a legitimate need for, including a legal right to personal information.
f. The information can be obtained from your business or personnel records from your place of employment.
g. Even when you are connected to the Internet through broadband service, you are more vulnerable to “hackers” who may try to obtain financial and other personal identity information that is stored in your computer.
What identity thieves can do with this information?
Once identity thieves have your personal information, they use it in a variety of ways.
a. They may call your credit card issuer to change the billing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to a different address, it may be some time before you realize there’s a problem.
b. They may open new credit card accounts in your name. When they use the credit cards and don’t pay the bills, the delinquent accounts are reported on your credit report.
c. They may establish phone or wireless service in your name.
d. They may open a bank account in your name and write bad checks on that account.
e. They may counterfeit checks or credit or debit cards, or authorize electronic transfers in your name, and drain your bank account.
f. They may file for bankruptcy under your name to avoid paying debts they’ve incurred under your name, or to avoid eviction.
g. They may buy a car by taking out an auto loan in your name.
h. They may get identification such as a driver’s license issued with their picture, in your name.
i. They may get a job or file fraudulent tax returns in your name.
j. They may give your name to the police during an arrest. If they don’t show up for their court date, a warrant for arrest is issued in your name.
How do you prevent identification theft?
The best way of dealing with Identity theft is to prevent it from happening in the first place. Protect yourself by protecting your identity document, drivers licence and personal information.
The following tips may help you keep your peace of mind.
a. Always keep your ID (identity book), passport and drivers licence safely.
b. Before you disclose any personal information find out how it will be used. Find out if the information will be kept confidential.
c. When you are requested to fill in personal details on documents, ensure that the company you are dealing with is legitimate. Verify if the representative posing on behalf of the company does indeed work at the company in question.
d. Keep a record of your accounts and follow up if they do not arrive on time.
e. Guard your mail from theft. Remove post from your letter box after it has been delivered. If you are going to be away from home, ask a neighbour to collect your post for you.
f. If you move to a new place of residence, change your address on your accounts without delay.
g. Do not use predictable passwords such as your date of birth or telephone number on your accounts.
h. Carry only the amount of information that you will actually need in your handbag.
i. Do not give out personal information on the phone, through the post or over the Internet unless you have initiated the contact or know whom you are dealing with.
j. >Keep items with personal information in a safe place. Tear or shred documents such as credit applications, bank statements and receipts.
k. If you have service work done at your home or employ outside help, do not leave personal information lying around.
l. If you live with housemates ensure that your personal information is kept safely.
m. Give your ID only when absolutely necessary. Ask to use other types of identification when possible.
n. Request a copy of your credit report from each of the major credit reporting agencies every year. Make sure it is accurate and includes only those transactions you have authorized.
