In todays times criminals dont always need guns and masks to make a big haul - an individuals social security number, or a pre-approved credit card application from their trash could be all thats needed.
Identity theft is a crime in which an identity thief illegally obtains key pieces of personal information in order to pose as someone else. What is their "modus operandi"? The information can be used to obtain credit, merchandise, and services using the victims' name, or to commit fraud. The Internet has made it easier for an identity thief to use the information they've stolen because transactions can be made without any real verification of someone's identity. All a thief really needs today is a series of correct numbers to complete the crime.
HOW DOES IDENTITY THEFT OCCUR
We've all learned to be watchful with respect to our personal property and our identities, yet criminals have many methods for stealing documents and other valuables:
Dumpster diving- The fraudster obtains documents by searching trash or garbage bins.
Mail theft - Mailboxes do a poor job of protecting your mail. Documentation such as account statements, administrative forms, or partially completed credit offers are all priceless to criminals.
Shoulder surfing - Criminals loiter around automatic teller machines and telephone booths in order to obtain your personal details.
Skimming - It is also possible to install miniaturized equipment on a valid ATM. Fraudsters install a copier which captures your card information so that it can be duplicated, and a camera which films you entering your personal identification number (PIN)
Phishing - Criminals create fraudulent email and web sites that resemble online bank or retail sites. They are designed to fool users into revealing personal information, particularly credit card numbers, account numbers, and passwords.
Insider identity theft - Companies have implemented measures to keep the bad guy from hacking from the outside, but they don't realize the risks associated with "employees gone bad" and the internal damage that can be done.
Peer to Peer (P2P) - File sharing is an easy way to leak company and client data to the world.
WHAT ARE THE RISKS
So what are some of the risks involved with falling victim to identity theft?
The most obvious problem with identity theft is the financial loss suffered. Individuals whose credit card or bank account information is stolen are sometimes held responsible for the accumulated debt incurred by the fraudster.
Identity theft is becoming a big problem in South Africa and is said to be costing the country more than R1-billion every year. The Consumer Profile Bureau said that ID theft had become "the white collar crime of choice" because it was "so easy". Armed with somebody else's personal details and ID number, a fraudster could "open numerous accounts ...and then go on a spending spree", said the bureau's managing director, Fred Steffers.
Businesses and financial institutions are often affected by data theft. Apart from suffering financial losses, they also suffer blows to their reputations, their credibility, and their future activities. The potential damage includes direct financial loss, indirect costs (from repairing the damage), ruined images, as well as accusations, arrests, and detention.
Some examples of how businesses could be affected are:
The company assets could be stolen and the bank accounts emptied by the criminals who have fraudulently appointed themselves as directors of the company.
The company identity could be stolen by the fraudsters who would then trade on the basis of the company credit history, by ordering goods and services on credit, for which you would probably be sued for the eventual payment.
The company could sell goods or services to fraudsters who have stolen a legitimate company's identity and the company may never receive payment for the goods or services you have supplied.
WHAT CAN BE DONE
Prevention is usually better than the cure, Identity Theft is no different. There are many things that you can do to reduce the risk of it happening to you.
Individuals:
Monitor your accounts, review the balances of your financial accounts, and carefully check for any unexplained charges or withdrawals.
Be wary of emails requesting personal information. Reputable businesses will never ask for your user name, password, or credit card numbers via email. If you are concerned about your account, contact the organization directly by phone.
Know who you are dealing with. If someone contacts you asking for private identity or financial information, first find out who they are, what company they represent and the reason for the call. If you think the request is legitimate, contact the company yourself and confirm what you were told before revealing any of your personal data.
Try to use strong passwords. Security experts recommend creating passwords that combine letters, numbers, special characters, and are more than six characters in length. For instance, a strong password would be: T3lef0n3
Business:
Take action to reduce risky behavior-downloading programs, accepting email without discretion, responding to email concerning confidential information-through education and by creating documents detailing the rules of hardware usage or listing user responsibilities.
Maintain a single gateway to the Internet with a firewall and an intrusion detection/prevention system to detect and block suspicious data exchanges.
Management should carefully screen all employees who have access to personal data and should consider conducting background checks as well, when new staff is hired.
Secure all personal data in locked cabinets. If the files are stored electronically, ensure that they can only be accessed by appropriate personnel. Business could use an electronic monitoring system, which allows employers to see who is attempting to access sensitive information.
Train employees about ID theft. Provide instruction on how to secure, handle and destroy appropriate files. Include information on protecting personal items such as purses or wallets.
The increase in identity theft can be attributed to the fact that with progress there are often problems. The fact that more and more people are doing business online and more personal information is out in the public makes it vulnerable for identity thieves to steal. Both individuals and businesses should be vigilant with both their personal and business records. If they are not, then they are at risk of losing everything they have worked so hard to build. While you may not be able to prevent every instance of identity theft, following the precautionary measures will reduce the probability of you being the next victim. Good luck!
