CREDIT SCORE INFO SERIES-6

IDENTITY THEFT

RESTORE,ENHANCE & PROTECTYOUR CREDIT HEALTH

Identity Theft

• In the 1990s, a crime called identity theft became rampant and it involves everyday transactions.

• With increased financial transactions online, which require one to share personal information such as bank and credit card account numbers, name address, and phone numbers, identity theft has become rampant around the world today and has become one of the fastest growing crimes of the century.

Identity Theft

• According to some sources, identity theft is the fastest growing white collar crime.

• An identity thief steals some piece of your personal information and uses it without your knowledge to commit fraud or theft.

• A common example is the act of using your personal information to open a credit card in your name.

Identity Theft

• According to Norton Cybercrime Report 2011, globally 431 million adults experienced cybercrime in 2011 and more than 1 million plus adults become victims of it every day.

• As per report, India is fast emerging as a soft target for organized cybercrime with four in five online adults becoming victims of identity theft in 2011.

Identity Theft

• Stealing an identity is, unfortunately, surprisingly easy to do and happens when you least expect it.

• In today's digital age, your personal information such as name, date of birth, address, phone number, email ID are easily accessible online and offline.

Identity Theft

• Such easily available information can be misused by conmen. With these bits information, a fraudster can procure a phone connection or a credit card pretending to be you.

• It occurs when someone uses another person's personal information, such as name, credit card number, bank account details, address, or other identifying information to take on that person's identity, in order to commit financial fraud or other crimes.

Identity Theft

• One does not get to know until one gets a statement from the service provider. But by then the damage would have been done.

• According to a leading agency, which works with identity theft victims, says it takes an average victim of identity theft two years to clear his or her credit rating.

Identity Theft

• Contrary to popular belief, the primary cause of it is not because more people are online, since the crime of identity theft is not limited to online transactions or online banking.

• But, it is caused by people not paying attention to the contents of sensitive information that they receive, online or offline, such as personal details, bank or credit card statements, telephone bills, and not guarding that information with the care that it deserves.

Identity Theft

To prevent the Identity theft, one must know the motives of the criminal. The most common forms of identity theft are:

• Credit Card Fraud: Here a new credit card account is opened with a victims' name and address or an existing credit card account is "taken over" by a fraudster, who charges items using a victim's name and account number with no intention of paying the bill.

Identity Theft

• Communications Service Fraud-In this type of fraud identity theft starts telephone, cellular, or other utility service in the victim's name.

• Bank Fraud/ Financial Identity Theft-In this theft criminal tries to obtain the identity of others to hold the goods and services. It is of two types:

Identity Theft

• Criminals would pretend to be the holder of an account and make use of funds. They need to get ID token, PIN and Card number. Once they are able to get that now they can easily access to various delivery system such as ATM, branch teller, Phone banking etc.

• While in the second type of Financial Identity theft, criminals would make use of an identity of others to create a new account in the bank. They can apply loan and can take advantage of victim good credit history.

Identity Theft

• Internet Fraud-In this type of fraud identity thief uses websites, email and off-line methods to try to steal someone's identity and make off their with their assets. Once an ID theft in the works, the internet can make the job considerably easier.

HOW IS IT DONE?

• The Internet has made it easier for an identity thief to use the information they've stolen because transactions can be made without any personal interaction.

Most common way in which thieves get personal information could be:

• Criminal steal wallets containing identification, credit cards, and ATM cards.

• Criminal steal mails from mailbox, including bank and credit card statements, retail stores bill, pre-approved credit offers, telephone bill, and tax related information. Using stolen information they fill out a "address change forms" to divert your mail to another location.

Most common way in which thieves get personal information could be:

• E-commerce sites collect a lot of data from visitors. The books, magazines, music and movies you buy online are all linked to you by name. Web retailers are collecting a sizable database of information on individual purchases.

• Identity thieves also do some of their best work just by looking over your shoulder also called "shoulder surfing" as you dial your telephone calling card number or punch in your account number or PIN at an automated teller machine (ATM).

Most common way in which thieves get personal information could be:

• They commit fraud to obtain your credit report by posing as a landlord, employer, or someone else who may have a legitimate need for and legal right to the information.

• They do dumpster diving in which they dig through garbage cans of offices, business for personal data that has been discarded.

Most common way in which thieves get personal information could be:

• They get your business or personnel records at work. This is usually an "inside job", done sometimes by a disgruntled employee.

• They use personal information you share on the internet using key loggers.

PRECAUTIONARY MEASURES

• Step 1: Don't keep the copy of PIN in your wallet. Better learn and keep it mind.

• Step 2: Don't keep shared documents such as receipts, credit card reports, loan applications and other documents which contain your personal information.

PRECAUTIONARY MEASURES

• Step 3: Get a copy of credit report from worthy resources regularly. Check them and if fraudulent report if immediately.

• Step4:In case credit card or debit card or ATM card is lost or stolen. Report it to bank immediately.

PRECAUTIONARY MEASURES

• Step5: Keep check on your mails ( not email), are they coming regularly if not kindly check it may be that criminal have taken some of your mails and used it to get your personal data.

• Step6 : Safeguard yourself, look for best protection measures against any financial loss.