Dealing with an insecurity in the modern world
Findings from a recent survey of 2,000 people by American Express Insurance Services indicate that identity theft is the largest safety fear in the UK today.
43% of those asked expressed worries about stolen identity compared with 41% for street crime and 32% for being mugged or attacked.
The UK Cabinet Office estimates the cost of ID theft as being £1.3bn annually.
Identity Theft and Identity Fraud
Identity theft refers to the stealing and dishonest use of personal information belonging to real people - alive or dead - by others seeking personal gain. It is a form of Identity fraud.
Identity fraud is defined as gaining benefit by deception by third parties - including through creating a fake character - usually to seek financial gain.
Increasing globalisation, partly through the rapid development of new telecommunications and internet technology, is to blame as international fraudsters take advantage of the related growth in world trade and financial market deregulation. The proceeds of identity crime often fund criminal or terrorist activities elsewhere.
Access of Personal Information
Our wallets or purses usually contain licences, bank or credit cards and other personal documents that may be stolen. Burglaries or theft of important documents posted to our homes - including through mail being diverted to another address - are other common methods. Garbage also may be searched for discarded information.
Hacking into personal or other computers is another technique increasingly used as are scams designed to con information out of us by, for example, telephone.
Our cash machine withdrawals and electronic fund transfers can be monitored and then abused by others. Employees of legitimate businesses - restaurants are common examples - may also skim extra payments from credit cards or even copy the cards onto blanks.
Any way thieves can find, they will use if we let them.
Stopping Theft
It is impossible to guarantee we won't become victims of identity theft or fraud. However, taking the following measures can help:
- Checking account statements frequently and regularly ordering a copy of credit reference files
- Placing passwords on important accounts
- Not carrying personal information unless we have to
- Shredding confidential documents before disposal
- Avoiding unnecessary or suspicious requests for personal information by mail or over the internet and telephone
- Putting credit limits on accounts
- Filling out checks and forms carefully
- Removing our names from redundant mailing lists
- Updating user passwords and security software on computers
- Using a firewall to secure online PCs and being wary of unsolicited emails or downloads
- Conducting transactions over secure websites only
- Wiping hard drives before disposing of any computers
- Not accessing personal information when using public computers
After the Event
Although it may take weeks or months after a crime to discover we are victims, there are ways to repair at least some of the damage and to prevent further incidents. Contacting creditors, credit reference agencies and the police is a good start. Constantly reviewing account statements should become a frequent habit in any event.
