HAs it stands, in 2019 identity theft is one of the fastest growing crime categories and is being amplified even more by the speed at which technology is progressing. It is thought that every 2 seconds, someone becomes a victim of identity theft. The impact that this can have on an individual’s immediate finances, as well as their long term credit rating, can be devastating.

Understanding Identity Theft

Simply put, identity theft is a criminal activity that seeks to gain enough information and identification points of an individual person, with the intention of using this information to impersonate that person to gain access to credit.

Naturally, when this occurs the process of rectifying can be complex, time-consuming and difficult and in some cases, the damage caused can not be entirely reversed.

The Most Common Types of Identity Theft

Over the years, Identity Thieves have come up with hundreds if not thousands of ways to scam individuals and get access to credit and accounts. One of the main problems is that oftentimes victims will not know they have been attacked for days, weeks or even months after it happens, which can, in turn, make it very difficult to repair the financial damage that is caused.

Mail Theft and Dumpster Diving

One of the most common forms of identity theft involves stealing personal mail and documents from letterboxes, or seeking similar documents from garbage bins. Whilst simple, this is a very common starting point for many scams involving fraud and identity theft. Businesses need to be especially careful; not only does the careless discarding of confidential information put your business and your customer’s information at risk, possible brand damage to your business but also you become vulnerable to litigation & significant fines.

Phishing, Vishing and Smishing

Whilst many believe that phishing is a phenomenon that has been largely brought about by the rise in popularity of the internet and email communication, the truth is that phishing in its various forms (phone calls are known as Vishing, and text scams are now known as Smishing) has been around for hundreds of years. Simply put, phishing is when thieves pretend to be someone they are not, with the intention of getting access to personal details, or trick people into transferring them money.

Hacking and Viruses

We live in an age where our personal details are stored on many different electronic devices such as computers, tablets, smartphones and in the cloud. Whilst every effort can be made to secure these types of technology, the reality is that if somebody has the right skills and understanding of that technology, then they can use software and hardware to force their way behind security measures, not dissimilar to forcing entry into a home or car. There are many ways this can happen, from aggressive attacks on databases through to simple keystroke logging software that may be installed on your device in secret. In any case, hacking and viruses present a significant threat to any user of technology and are the basis for many scams.

They have your information, now what?

Getting access to the personal details of an individual is only the starting point of identity theft. What the thieves do with these details, on the other hand, has the most impact on its victims.

In today’s worlds, almost anything can be purchased on the internet, including loans and credit cards. With the right information about you, including your name, address, 100 points of identification an identity thief can start a number of credit facilities quickly and easily. Once approved they could have access to these accounts, and use them both online and in person as if they were you. In most cases, it is many weeks before a victim even knows this has happened, by which time they have exhausted the balance on the credit facilities, and left you with the debt.

Most financial institutions have policies in place to deal with these crimes, and often have full task forces employed to help assist customers who have been targeted. That being said, depending on the severity of the crimes, and location of the thieves, you may still find that negative reports are being made against your credit record, which in turn can have devastating long term effects when it comes to applying for home loans or other forms of credit.  

How can I prevent being a victim of identity theft in the future?

In the first instance, we should all be vigilant when it comes to managing our personal documentation both in the real world and online. Simple steps such as shredding documents with personal information, expired cards or archived records can significantly reduce the risk of being the victim of ‘dumpster divers’. However, we also need to be aware of the impact of our behaviour online and our interactions with devices.

Always make sure you lock your devices when you are not using them, and ensure they are protected by strong passwords. Similarly, make sure any account you sign up for online is through a certified and reputable company, and that the information you provide is managed in a way that complies with data and privacy laws.

Also, ensure that you regularly monitor your credit reports, credit card statements, bank accounts and store cards to ensure that you can spot any unexpected activity.  

If you have been the victim of identity theft and have had your credit rating negatively impacted as a result, there are definitely steps and actions you can take to repair this damage. Speak to one of our professional consultants to understand your options.

If you are thinking about seeking approval for a home loan, but have been the victim of identity theft, then reach out to our experienced mortgage consultants for a confidential discussion about your personal situation.

Bernie Kyne
Mortgage Consultant
0400141757
bernie.kyne@mortgage-express.com.au