What is identity theft? According to the Association of Certified Fraud Examiners, Identity Theft is the criminal act of obtaining and using another person’s data in a way that involves fraud or deception. The personally identifiable information (PII) can be used for many different purposes, often for financial gain.
Identity theft is a prevalent and well-known form of fraud. Everyone is a potential victim. However, some sectors of society are targeted more often than others, and they may surprise you.
Who steals identities? Sometimes, it is an organized crime; other times, it could be a co-worker or individual trying to hide a criminal record. To clarify, identity fraud is a crime of opportunity. When confidential PII is thrown away without being destroyed, or obtained through false means like spam calls, perpetrators have the opportunity to commit identity theft.
Often seniors, college students, children, and, more recently, millennials are the targets of identity theft. The common factor is credit history, which can be used for thieves’ benefit. To clarify, seniors typically have good credit, college students and millennials have clean credit histories, and children have no credit history, that thieves can exploit. Consequently, monitoring your credit score and freezing your credit where possible should be a common practice.
Fraudsters use stolen identities, in whole or in part, to defraud financial institutions, take over bank accounts, or create a new identities for criminals. Thieves use stolen credit scores to obtain a credit card using a victim’s credit history, make purchases on the card and never pay the expense. Later the victim finds out about the theft when they apply for credit. Recently there was a case where a woman used stolen identities to obtain Canola loans. Additionally, stolen images from social media are used to convince a victim that the fraudster is someone they are not, for example in romance and catfishing schemes.
A fraudster may even use your stolen identity to set up an online identity on social media, to steal your followers, or make posts under a false identity.
Pro-active ways to protect against Identity Fraud:
- Monitor your credit frequently; several credit card companies and banks offer this service. Be aware of what you are making available to the public.
- Be careful when using public wi-fi.
- If your bank or a creditor calls you, authenticate the caller by getting a file number or name and calling the vendor back at the regular contact number. Authentication should be a two-way process.
- Shred any documentation, including junk mail, that contains personally identifiable information.
- Shred your bills, tax returns over seven years, and pay stubs before disposing of them.
- Be aware of what you post on social media. Do not post personally identifiable information, such as your full name, date of birth, hometown, relationship status, pet names, years of graduation, and school names.
- Have a dedicated email address for online purchases and site logins.
- Use multi-factor authentication when possible and only allow necessary cookies.
- Set up a Google search of your name.
- When practical, use strong privacy settings on social media.
- Keep your personal social media account separate from your public account if you have a business.
- Keep your driver’s license out of plain view.
- Make your PIN codes as long as you can, and cover the key paid when using your PIN.
- If your computer security has a dark web alert, use it. Your internet provider may have this service or use Google’s dark web alert.
If you are a victim of identity theft contact your bank, the CRA, and the police right away. Also, report the theft to your credit card companies and insurance companies; many home insurance policies include a rider for identity fraud. Here is a checklist of people to contact if you are a victim.
People can commit identity theft by digging through the trash or reading over someone’s shoulder just as easily as by making spam calls and using digital methods. Be aware of what personally identifiable information you are letting the public see.
Kathleen O’Donoghue, CFE
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