How is identity theft accomplished?

Identity theft (or “identity fraud” as it is sometimes called) is accomplished when a thief obtains sufficient personal data about you, to be able to impersonate you in some way. This “impersonation” does not require the identity thief to appear in public disguised as you; it usually just means the thief will use your name and other private details to obtain financial gain.

The more sinister forms of identity theft involve a fraudster assuming a victim’s entire identity. In these cases the identity thief will obtain documentary proof of identity such as a passport or driver’s license in the name of the victim. If the identity thief then leaves the country to take up residence abroad under another identity, the chances of catching him are practically nil.

Identity theft can be accomplished with a very small amount of documentation; a bank account number and a utility bill as proof of residence gives an identity thief an easy way to use your private identity to obtain credit.

The key to successful prevention of identity theft is awareness. If you ensure you are aware of how identity theft is accomplished, you will be better equipped to protect yourself and your family from the devastating invasion of privacy involved in cases of identity theft.

The following are six very common ways in which thieves obtain information to enable them to accomplish identity theft.

Card Skimming

To accomplish identity theft through card skimming, all the thief needs is the chance to get hold of your credit card details (including the security number). This is often done by using a small electronic device to scan the card, but it can also be done by simply writing down the details. To avoid theft due to skimming fraud, you should never let anyone take your credit card out of your sight.

Mail theft

When you move house, make sure you notify everybody of your change of address. To be safe, you should have the Post Office redirect your mail for a year. Identity thieves will use ordinary junk mail to accomplish identity fraud; those “pre-approved” loan offers are money in the bank to fraudsters.

Dumpster diving

There are people (commonly known as “dumpster divers”) who make money out of sifting through trash and stealing discarded documents containing personal information. Every personal document you throw away needs to be shredded before it is thrown out, or burnt.

Phishing email fraud

Phishing emails are an easy way for identity thieves to steal personal information. The way phishing works is that you receive an email which appears to be from your bank, or credit card company. The email warns you that there has been a security breach, and then requests that you click on the link provided and log into your account. If you click the link it takes you to a phony website and, when you log in, everything you type will be recorded and downloaded by the fraudsters.

Theft of documents

Any document bearing personal information, even an old credit card receipt can be useful to identity thieves. Always keep your private documents in a safe place where they will not be seen by the casual visitor.

Third party privacy breaches

Occasionally a legitimate company (for example, your credit card company) will be the source of a leak of private data. This might be done by accident, but it could also happen as the result of the actions of a dishonest member of staff.

The final example of how identity theft is accomplished, is the most difficult to control. You cannot prevent criminal activities of dishonest employees. Your best defence is early detection of the crime by using a fraud prevention monitoring service.