Total identity protection is impossible. Once your social security number and contact details have been inputted into a bank computer for example, you have no control over its safety from that point on. There are ways however of minimising the risk to you and your family. If you cultivate good security habits, your identity will be safer and it needn’t affect your attitude towards the people around you. There are various different types of identity theft. Mostly, it is the use of a stolen name and social security number to obtain credit, goods or services. By having a good handle on your credit cards and bank balances and checking them at least once a week, you will immediately detect if something strange is going on. Online fraud is covered extensively on all banking and government websites. Take the time to familiarise yourself with good security practices to avoid being a victim of phishing. Also, avoid putting any personal data on open, social networking sites such as Facebook or Myspace. Finally, pay careful attention to the paperwork that you throw into your rubbish bin. Bank and utility bills and statements often contain your name, address, contact information and social security number. That’s not even to mention your account details and existing balance. Information like this is gold to an identity thief, who will not be above “dumpster-diving” to obtain it. Invest in a shredder or start exploring the exiting applications of paper pulp in your home.

As is often said, the best form of defense is prevention. We need to know the facts, arm ourselves from possible breeches. If people can start forming naturally cautious habits, then there needn’t even be a mentality of paranoia. The best way to become less vulnerable is to start by knowing the facts. How do criminals obtain enough information about us to steal our identities?

Online:

There is no doubt that one of the major factors in obtaining information is how easy it is to get. In other words, the easier it is to find the info, the more likely it will be found by the wrong people. Social networking sites, personal websites and online forms are no place to post too much information. Never put your home address, family information, personal telephone details or even work details online. This is the easiest way for criminals to steal identifiable information of individuals. They needn’t do much to obtain it. Google your own name and see what comes up.

Real Life:

There is a practice that is so common it has its own term. This is known as “dumpster diving.” It describes the rather unpleasant process of going through somebody’s trash to obtain personal information. This often comes in the form of bank or account statements, credit card updates, utility bills etc. Once again, if it is easy to find, criminals are more likely to find it. Shredding machines have become quite common and can be purchased at the same cost as a microwave at most large retail stores. If there is no other alternative, burn or pulp the paper so that it is illegible. Tearing it up is not always the most reliable way, but is a deterrent.

There are many additional ways including “phishing” which your bank will almost certainly have warned you against and the all too common eavesdropping while you are in the process of concluding a transaction in public. The watchwords are caution. If you are imparting sensitive information in a public place, rather write it down. Keep personal information online to an absolute minimum (create a separate e-mail address for “online activities”).

The more we understand the mindsets of criminals, the better prepared we are to protect ourselves. Always remember that the more difficult your information is to obtain, the less likely it’ll be abused.

Up to 18% of victims take longer than 4 years to find out that they have been victims of identity theft.

This in itself is a horrifying thought. Imagine the chilling realisation upon discovering that your credit record, family name and good reputation have been systematically destroyed for the last 4 years.

Victims lose up to $14340 and spend up to $1378 dealing with case related expenses and legal battles.

The threat to personal finances is very real. Not all companies, banking institutions and commercial businesses have insurance or “slush funds” to cover the illegal loss of funds of their customer base. Sometimes, when there has been a large security breech, smaller companies simply declare bankruptcy to avoid paying restitutions to multiple victims.

The long term ramifications are extremely damaging to individual victims. Up to 70% of victims never manage to shake the affects of the damage done to their names and credit records:

In addition, identity fraud statistics have shown that between 19% and 85% of victims struggle to acquire loans or credit after the incident and feel completely unprotected by the police who do not always believe their story when they initially try to report it. Victims experience very real and lasting pressure in their personal or family relationships due to sudden financial problems. The monthly insurance and credit premiums of victims are significantly higher as a result of the damage their reputations have sustained.

Apart from these shocking identity theft statistics, it has been reported that only 1 in 5 victims found it easy or simple to get in contact with a relevant reporting agency. As these figures show, the system is poorly set-up for a crime that is growing exponentially. The best way to avoid becoming a statistic yourself or discovering that your social security number has been used to nefarious ends is to guard the information of that and your family.

There is an unfortunate twist to the statistics that should be borne in mind. Up to 43% of victims believe they know the perpetrators. 16% of victims of identity theft are also victims of domestic abuse. The belief is that in these cases, the identity theft is part of the abusive cycle of power and subservience. That is why, based on the above quoted numbers, it is important to treat personally identifiable information with the same respect and care that you would with your credit card numbers, passwords and PIN codes. It is not information that should be left lying around at parties or near guests you don’t know very well. Similarly, do not tempt those who may have bad intentions by loudly giving sensitive information in public places or throwing utility bills and statements containing this information out in the trash.

Both of these responses are exaggerated and extreme. The fact is that identity theft is one of the fastest growing types of crime worldwide. With the growth of online commerce, it is no longer even a case of somebody in your town, state or even country being the predator. Similarly, there are plenty of security companies, working day and night to develop impenetrable software to stave off the threat to most of us. When we think of identity theft we imagine credit card fraud or “phishing”. There are actually several ways to steal your identity and use it to criminal ends. The Identity Theft Resource Centre has pinpointed several prevalent forms of the crime.

Identity Cloning: This is quite a rare one and tends to feature in movie plots. It does happen though. Your identity is stolen (name, information etc.) and used by the thief to assume your identity in daily life. This is often done by criminals wishing to evade the law. When done in a different city or state, it may often take some time to even realise its happening.

Medical Identity Theft: Medical insurance can be quite expensive. When desperate or in need of certain medication, an identity thief may assume your details to make use of your medical benefits to get hospital care or prescription drugs.

Criminal Identity Theft: This is probably one of the most common to beat-cops, who probably see this every day. It is the term used by people who pretend to be somebody else when they are arrested.

Financial Identity Theft: This is the one form of identity theft that can happen to anyone from anywhere in the world, making it the fastest growing and hardest to track. Your financial identity, credit card numbers etc. are used to purchase items or services, obtain loans or forms of credit by the thief.

Commercial Identity Theft: This falls out of the realms of threatening a person’s identity but certainly targets small to medium businesses. The thief steals a company name and information to obtain credit, goods or services.

The reasons for identity theft are quite straight forward. The thief will assume an identity to get money, purchase something or evade the law by pretending to be somebody else. In a world where con artists, hackers and people with unsavoury intentions walk the streets and look just like the rest of us, it is important to adopt an attitude of caution when imparting personal information. At the same time, it’ll be hard to conduct business, open bank accounts and confirm your own identity if you are not willing to put your trust in larger, accredited institutions. They are usually a safe bet as the companies themselves and their staff are regularly audited by government institutions.