Identity theft is experiencing a boom, as people continue to put more of their lives online and within easy reach of criminals. What can be done to avoid identity theft, and what can happen if you fail to take proper precautions? We can explain.
The term identity theft can be applied to any instance that involves taking someone’s personal information via fraud or deception – and it’s usually carried out with the goal of economic gain. It’s a serious crime with potentially devastating consequences, including financial loss, damaged credit and even legal troubles. Cybercriminals are smart, continually coming up with new methods of obtaining sensitive information, and while there are no foolproof ways to avoid identity theft there are things you can do to reduce the risk of it happening to you.
Types of Identity Theft
Identity theft comes in many forms. While most criminals will want to gather as much of your valuable data as possible, there are different crimes that can be committed with each piece of personal information.- Financial Identity Theft – This is the most common form of identity theft, where the stolen information is used to access bank accounts, apply for loans and credit cards, or make unauthorized purchases.
- Medical Identity Theft – Where the stolen details are used to obtain medical care, prescription drugs, or to file fraudulent insurance claims. This can seriously impact the victim’s medical records and health care access.
- Criminal Identity Theft – Sometimes cybercriminals will steal information and use it during a pre-existing arrest or investigation, landing the innocent victim in hot water and even resulting in unwarranted criminal convictions.
- Synthetic Identity Theft – The synthetic element to this type of identity theft involves the thief combining genuine and falsified information, making it harder to detect and trace. This is an example of one of the ways in which cybercriminals are refining their methods.
- Child Identity Theft – A child’s details are used to open accounts and apply for loans. This is another form of identity theft that is hard to detect, often only coming to light when the child has grown up and is trying to fill out applications for themselves.
Common Tactics Used by Identity Thieves
Phishing
This is where the thief creates messages designed to appear as though they’ve come from a trustworthy source, such as a service provider, business, or even friends and family. They may contain links to fake websites that resemble legitimate ones, or persuasive language convincing the recipient to part with their personal information.Skimming
This is where devices are inconspicuously attached to payment terminals, card readers and ATM machines to capture card information during transactions. They can be hidden in plain sight in public places, and make it different to track down where the initial breach occurred.Data Breaches
Large-scale hacks of organizations responsible for lots of personal data can result in your details being leaked to criminals, through no fault of your own. This information may even be sold platforms on the dark web.Man-in-the-Middle Attacks
This is when a hacker intercepts communication between two parties to steal or alter the information being exchanged. For example, if you’re logged into an unsecured network when you decide to check your online bank account, any details you enter may be intercepted and stolen by the hacker.Physical Thievery
Stealing phones, laptops, and other smart devices is a common way of stealing the sensitive information they contain. The less tech-savvy thieves will even search through trash and discarded documents in the hopes of finding anything containing personal information. It’s an old-school method, but one that still proves effective, especially when sensitive documents haven’t been effectively blacked-out or shredded.Staying Protected
When learning how to avoid identity theft, a great place to start is antivirus software. An essential tool when it comes to safeguarding your online experience, software specializing in malware removal, virus detection, security breaches and hard drive protection is invaluable. It makes browsing safer, reduces the risk of falling into traps set by identity thieves, and continuously scans for signs of malicious activity, meaning you can respond to attacks quickly – before significant damage is done. In 2021 alone, identity theft caused $52bn in losses. This is just one figure showing how high the stakes can be with this crime. So, as well as making use of the antivirus software and tools available on the market, we would suggest the following:- Avoid entering any kind of sensitive information while using Wi-Fi that may not be secure. In fact, unless you have a VPN, you should avoid using Public Wi-Fi altogether.
- Be discerning about who you share your personal information with.
- Always read correspondence from your bank such as statement and reports very carefully, otherwise you may miss discrepancies.
- Protect all of your devices with complex passwords; avoid using easily-guessed information.
How to Respond to an Identity Theft Incident
The total prevention of identity theft can’t be guaranteed. If you are one of the many victims unlucky enough to be targeted, here’s what you should do:- Get in touch with your bank as quickly as possible and alert them to the fact that you’ve experience suspicious activity. Ask them to freeze your accounts to prevent any further unauthorized transactions.
- If the crime has already been committed and is severe, report it to the relevant authorities. Depending on the extent of the crime you may need legal advice.
- Update all your passwords; the information stolen by the thief may be used to access multiple accounts.
