Many victims of identity theft speak about how shocking the incident was to them, the lasting ramifications on their good names and the fact that they simply didn’t see it coming. This is not a strange reaction. Most people are fairly trusting of the people and general commercial environment around them. This is not a bad thing. What would life be like if we mistrusted every stranger we meet or every document we put our name on. Unfortunately though, criminals look just like everybody else. A recent statistic has shown that up to 43% of victims believed that their identities were stolen by people they knew. This shocking statistic proves two facts. 1. It could definitely happen to you and 2. There is a good chance, in the unfortunate event of it happening, that it will be somebody you already know. The primary reason for this disconnect between people not seeing it coming and it happening all the time is the way human beings are hard wired. We are social creatures. Human beings are “pack animals” who are dependant on one another for communication, security and loads of other benefits. Living in modern society has certainly not minimised this fact. Although you do not know every single person living in your street by name, you greet them because you recognise their faces, see them daily and observe them in their everyday lives. Somewhere in the back of your mind you know, if there’s an emergency, you could at least depend on them to call the police, if not come to your aid. You know this because you feel the same unconscious obligation to do the same if the situations were reversed. These are important instincts that are necessary to co-exist with other human beings. Unfortunately, we have to face the facts that if you know 300 people, at least 5 of them have been or are in the process of criminal activities. With rising identity theft statistics, at least two of those may be identity thieves and if you make regular contact with them the risk becomes immanent.

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.

There is a lot of speculation as to how criminals obtain enough personal data to fraudulently get a loan on our names (among various other criminal activities). We often feel that the systems in place, such as signatures, passwords, pin codes and security clearance codes should protect us from these and similar criminal activities. We often underestimate the resourcefulness of criminals, assuming that they are not as bright as we are. This is a grave mistake. We forget that they spend all day thinking up new ways to breach our security, whereas we only spend a few minutes a week, maybe taking a cursory glance at the alarm system and testing it from time to time. This makes us very vulnerable and criminals count on that vulnerability.

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.

Some shocking recent statistics have shown that up to 19% of identity theft victims only discover the criminal activities 4 years after it began. It may seem impossible to those of us who have not experienced this horrible and invasive form of crime, but it cannot always be prevented. For this reason, there are a lot of people out there who believe that they have covered their bases with good security measures, only to find that strange things are starting to happen.

Mail:

One of the major forms of identity theft starts with mail. Either mail stops arriving completely, strange mail arrives (i.e. credit cards you didn’t order or bills and statements that aren’t yours). This is usually because somebody who is claiming to be you is re-directing your mail or using an old address of yours to purchase goods on your name.

Credit Card and Bank Statements:

If you start noticing strange charges on your bank accounts and an unusually high amount of balance queries you should get suspicious. Banks will have records of exactly where and when these requests and transactions took place.

You are denied simple loans or credit extensions:

If you have kept a good credit record and for no reason, you suddenly find it impossible to open an account or get any kind of credit, this may be a sign of identity theft.

Strange Comments

Statistics show that up to 42% of identity theft is perpetrated by somebody the victim knew or knows. If somebody you know starts paying an unhealthy interest in your financial status or asking probing questions about your banking institutions and habits, it may be worthwhile to double check your balances and make sure all is in order.

Corporate Breech

There are more clear-cut situations. When a company makes a public statement that some of its account information has been breeched, you will probably be notified directly. This does not necessarily mean that it has been used yet, as this information is often sold a few times after being stolen so as to avoid detection.

Employ the help of a credit monitoring service

There are several companies that can aid in keeping you posted whenever any kind of activity happens in your financial accounts or personal name including applications for credit, address changes and even mail misdirection.

There are times when a person needs to look at the abovementioned factors more diligently, if your car has recently been broken into or you have lost a wallet or even an identity document, drivers licence or passport. As a matter of course though, it is a good idea to keep a close eye on these factors regularly. Make it a point of habit to do a thorough check of your banking statements, the names on unsolicited “junk mail” and strange “misunderstandings” like bad credit terms on new accounts. This may not always be enough to stop identity theft, but it may at the very least give you a head start if you suddenly discover that you may be a victim.

Identity theft is the fastest growing criminal activity in the world. As communication and business becomes more remote, electronically dependant and sophisticated, so criminals have found new ways to exploit something as simple as a name. The identity theft statistics speak for themselves. Recently published data from the Identity Theft Resource Centre has shown some shocking figures in the United States alone.

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.

Avoiding Identity theft is not as simple as merely reading the security terms and conditions on websites and filling in a fake name. There are many different ways that your identity might be stolen and unfortunately, victims of identity theft are spread far and wide. Some have never even been near a computer. Although there are many different applications for a stolen identity, most are used to obtain credit, quick cash, goods or services. The rarer, but truly frightening applications range from literally stealing your name and social security number and “becoming you” all the way up to creating identities for illegal immigrants. In all cases the main reasons are getting money (either yours or what will eventually become debt that you will be held responsible for) and evading the law. Criminals will often assume existing people’s identities when being charged or arrested for criminal activities. Sometimes the poor owners of the names struggle for years afterwards to get their records cleared.

The facts are quite clear and the current rising statistics speak for themselves. Avoiding identity theft completely is simply not possible. At some point in your daily dealings you will need to fill in a form at a doctors’ office, open a bank account or complete a service agreement or contract. That’s not including the various amounts of loans, mortgages, credit cards and car finance contracts that most of us enter into. For legal reasons, these institutions require your information in order to identify you as the responsible party. Once your information enters their database, you no longer have control over its progress through the system or security. What makes total avoidance of identity theft and similar types of fraud even more unlikely are the various legal practices of selling information. When a company decides to sell its debt, it makes an agreement with a “collection company” who is willing to purchase your contract at say, 75c to the dollar. This means that the original company makes a bit of a loss, but doesn’t have to go through the hassle of trying to recoup the money from you. Now company number two has all your relevant information including name, social security number, contact details, physical address and annual salary. Legally speaking they only use this information to send you letters and make contact with you to try and make a profit on their purchase. The grey area comes when company two is finished with your information. Let’s say that you have finally paid them and completed your financial obligations. Do they erase you from their database? The sad thing is they don’t. Information like this is valuable and many companies, even legitimate ones seem reluctant to part with such a large amount of data including interesting titbits, like your annual salary. After all, this information can be extremely useful to a marketing company. Enter company number 3 who, once again, completely legitimately purchases the database from the collections agency. The information they have is only used for market research (i.e. how much do men between the ages of 35 and 45 make annually). They won’t erase your information either, they will sell it again, and so, your personal details will be passed from hand to hand until you get phone calls from telemarketers for newspaper subscriptions and insurance. It is important to remember that none of these practices are necessarily illegal. All of these companies have merely used your information in the interests of commerce. What is disturbing though is the fact that this information is archived on systems that may be more vulnerable to hacking than bank or government databases are. It is important to do your best to protect personally identifiable information in your own capacity. The real protection however, will come when legislation catches up with the size of the problem.

Identity theft is a well known phenomenon. It is impossible to avoid putting ourselves at risk though, as our identities are an integral part of what separates us from others. Without your unique name, social security number, address and additional bits of information that are exclusive to you, it is impossible to open a bank account, submit to contractual agreements or simply apply for a job. How then is it possible to continue the important processes of daily life but still engage in identity theft prevention?

There are certain practices that are obvious. Never give information over the phone or to a person without due cause or identification. Just because people say they are phoning from the bank or from a certain company, it unfortunately does not mean that they are telling the truth. Similarly, e-mails from banking institutions will never ask you to submit telling information. This is known as “phishing” and is one of the most common methods of online fraud around. Your banking website should have several pages of information on this particular phenomenon. As stated before, it is not really possible to completely protect your identity as you are not the only one with this information. Identity theft prevention should therefore be more clearly defined as identity theft protection. By following certain practices and making a habit of conservative data sharing, you can minimise the risk by making it more difficult for criminals to access your information.

Make sure that your business, personal and contractual dealings remain completely legal. When we begin blurring the lines between what is legally acceptable and what might be considered unethical or immoral, we also open ourselves to a world of ways to be victimised. When your personal or professional dealings are not on the level, you make yourself vulnerable. If you do ever discover that your identity has been used for some or other reason, it becomes difficult to report it. Identity theft does not end at financially fraudulent behaviour. A good identity is valuable to illegal immigrants and those engaging in acts of terrorism and espionage as well. There are many resources that will point you in the right direction of minimising the possibility of identity theft. Common sense also plays a role though. Never throw important information just like that out in the garbage. This includes credit card and utility bills and statements. When submitting information in a public setting, and you feel uncomfortable about those who may overhear you, be sure to write down the information rather than make it available for potential eavesdroppers. Never give more information than is necessary and never be afraid to ask for proper accreditation from companies or credentials from individuals. Trust your instincts and have a healthy respect for the value of your personal data. This includes your names, the names of your family, social security number, your residential or work address, telephone numbers, account numbers, bank or credit card numbers and financial balance information.

It is a great pity that we cannot trust strangers, but in a world of burgeoning crime, we should not completely mistrust everybody we meet. Merely politely ask them for the credentials you need in the interests of protecting yourself and your family.

There are two schools of thinking that most people follow when it comes to identity theft. The first is the classic “it will never happen to me” mindset. Many people have heard the stories of victims of identity theft but don’t really feel that it is a threat to them personally. The other side of the coin is those who refuse to submit their details to anyone for any reason for fear that their identity will be stolen and used for nefarious purposes.

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.