How Can Using the Internet Help You Fight ID Fraud?

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Identity theft – also known as ID theft, identity fraud and ID fraud – refers to an increasingly common type of fraud where a criminal steals someone else’s identity in order to profit illegally. It is one of the most rapidly increasing types of fraud in many developed countries.

In the UK identity theft is increasing at the rate of 500% each year and, according to Which Magazine, 25% of the population have either suffered from identity theft or know someone who has.

In the USA, a report issued by the Better Business Bureau revealed that, in 2004, over 9 million Americans became victims of one of the many different types of identity theft with the total sum defrauded being $52.6 billion.

With figures like this, it’s unsurprising that there is a great deal of concern surrounding computer and internet security. After all, the internet is basically a mechanism for exchanging information and the possibility that some of the information exchanged may be more than intended is never far from many internet user’s minds.

It’s easy to imagine international criminal masterminds using the internet to hack into computers so that they can access information with which to advance their illegal schemes. However, as revealed in the report, the facts of the matter are a little more down to earth and the internet, far from making you more at risk to identity theft, can help to significantly cut your losses if you do fall victim this form of fraud.

According to the Better Business Bureau’s research the main methods by which criminals gain access to information used for identity theft fraud are as below:

1. Lost or stolen wallet, chequebook or credit card. 28.8%
2. Accessed as part of a transaction. 12.9%*
3. Accessed by friend, acquaintance or relative. 11.4%
4. Don’t know, refused, no answer. 11.1%
5. Information accessed by corrupt employee. 8.7%
6. Stolen paper mail or fraudulent change of address. 8.0%
7. Obtained some other way. 7.4%
8. Computer spyware. 5.2%
9. Information stolen from garbage. 2.6%
10. Computer viruses and/or hackers. 2.2%
11. Emails sent by criminals posing as legitimate business. 1.7%

* 12.9% resulting from transactions – 10.4% offline transactions, 2.5% online transactions.

In total, when the instances where information was accessed during transactions are subdivided into online and offline transactions, only 11.6% of the information used to perpetrate identity fraud was stolen from computers.

Of this more than fifty percent was obtained by the use of viruses, spyware or hacking – the risk of which can be significantly lowered by the installation of the appropriate protection software and by ensuring that this is kept up to date.

Not only did the study reveal that the internet was not a major source of illegally sourced confidential information, but it was also found that those victims who monitored their financial transactions using the internet, ATM machines or other electronic methods suffered losses which were, on average, one eighth of those of victims who relied upon old fashioned paper statements to check their account activity. This significant reduction was attributed to the fact that the fraud was discovered more quickly thanks to “real time” monitoring.

Of course, that’s not to say that you shouldn’t exercise caution when using the internet or take care to protect the personal information which you may have stored on your PC. However, as long as you take sensible precautions - install virus, firewall and spyware protection, and keep updated the internet could actually help you to avoid identity fraud.

Identity Theft - Different Types

It’s probably true to say that most people are much more aware of identity crime today than they were in days gone by. After all, ID fraud is one of the most rapidly growing crimes in the USA and in many other developed countries.

According to a recently issued report by the Identity Theft Resource Centre, there are 5 principle types of identity theft - and these are as noted below:

Commercial or business ID theft – in which the name or identity of another commercial entity is used to secure credit.

Criminal identity theft – where a fake identity is assumed after being arrested for criminal activity.

Financial ID theft – the use of another person’s identity to obtain goods, services, arrange loans etc.

ID Cloning – where somebody’s identity is assumed.

Medical identity theft – where someone’s personal information is used to fraudulently receive medical care, drugs or possibly to claim for insurance.

All of these are very serious. The financial consequences for individual victims of ID theft can be very serious indeed – and it can take a good deal of time for victims to clear their name and get their life back on track following identity fraud.

As an individual, there are a number of common sense measures you can employ to minimise the risk of becoming an identity theft victim. Obviously you should keep your personal data secure. Don’t tell friends and family your PIN, your password for example – a high percentage of identity theft victims are known to the criminal who steals their identity.

Also be very careful about how you broadcast your data. Anyone who works in an open plan office for instance should not be giving out their date of birth, mother’s maiden name or any other sensitive details over the telephone when workmates may be able to hear.

Shred your mail before you throw it out in the trash. So called “dumpster diving” is one of the main ways which criminals obtain sensitive information. Criminals can use details found in junked mail to assume identities – unsolicited offers of credit cards or loans are a real treasure trove for them.

Keep a note of the various numbers you need for cancelling your bank cards. These are detailed on the back of your card of course – but if the card is lost or stolen do you know the number to call? The faster you act the less the damage will be.
Finally, use the web to your advantage – check your bank account and credit card statements online in real time. You will notice strange transactions more quickly and be able to control the damage by rapidly halting the fraudster’s access to your funds.

Your Child And Identity Theft Prevention

You have probably heard of senior citizens becoming victims of identity fraud. Many seniors are unaware of the length that identity thieves will go to get the money and information that they need. But there are other identity theft and fraud victims that you may not realize. Many parents are discovering that their children’s information has been stolen, and often from an institution that they trusted. Identity theft prevention must occur earlier as a way to protect everyone from identity thieves.

One way to begin identity theft prevention for your child at an early age is to be aware of when and how you use their social security number. Most schools need to have their social security numbers but far too often teachers will have you fill out personal information sheets for the teacher’s use in the classroom. You do not have to list your child’s personal information on these sheets. If the teacher asks for the child’s social security number, then inquire why they need it. The same goes for daycare centers, activity groups or any organization that asks for it.

If the group claims that they need it for identification purposes, then you can always go to your local Department of Motor Vehicles and ask for an identification card. Just explain to the organization that preventing identity theft is of great importance to you. There are countless news stories of an identity thief using a child’s information to create a new identity for themselves. The information provided to the organization could be easily stolen. You can do your part to stop identity theft before it begins by just using this little bit of common sense.

If you are worried that your child’s information has been compromised by a loved one or a care giver, then you need to report identity theft right away to the proper authorities. The identity thief needs to be caught and then appropriately punished for his or her actions. This will help you correct all of the information on the credit reports. Yes, even children who have had their identity stolen will have a credit report.

Identity theft prevention for your child can never start too early. You would be amazed at how many identity theft victims there are under the age of eighteen. If you are careful about giving out your child’s personal information, then you can help reduce the likelihood that they will become a victim of identity theft. Keep them safe and you will be helping them for the future.