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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.

How is identity theft accomplished?

The answer to this question is simply that the way identity theft is accomplished is that an identity fraudster gets hold of some of your personal details and uses them to obtain an (usually financial) advantage.

Sometimes the personal details are stolen from online sources; the stolen items will be things such as passwords to bank accounts, Paypal login etc. On other occasions the identity thieves manage to get hold of personal documents which they use as evidence of identity.

Identity theft is the fastest spreading crime in history; committing the crime of identity theft is relatively easy and risk free, detection is difficult and victims often have a hard job convincing the authorities that they have not committed any crime, but have been the victims of identity fraud.

Think about how easy it has been for you to obtain credit legitimately. A bank account number and a utility bill is often all that is required. To prevent identity fraud being accomplished, you need to be aware of how the fraudsters obtain your personal information. The following three methods of getting information to accomplish identity theft are very common, and frighteningly simple.

Intercepting mail

If you move house, make sure you notify every company that might write to you of your change of address. The only way to be completely safe is to have your mail redirected by the Post Office for at least six months after you move (and preferably for a full year). Even junk mail can be used in identity fraud, so you need to have all mail redirected, not just the important stuff.

Phishing emails

Phishing emails are a very effective way for identity thieves to obtain login details and passwords. Many people are taken in by phishing emails because they often look totally genuine. The way phishing works is that an email purporting to be from your bank, or some such company, asks you to click on the link in the email and log into your account to check or update your personal information. If you click the link it takes you to a phony website where everything you type will be logged and downloaded by the fraudsters.

Theft of documents

Never leave private documents where they can fall into somebody else’s hands. No personal documents should ever be left in a vehicle. To be safe, all personal papers should be kept under lock and key, or at the very least kept out of sight. When you wish to dispose of a document, it should always be shredded or burnt; simply tearing it up will not prevent it being used by thieves to accomplish theft of your identity.