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May 29th, 2002
Information technology feature: your identity may be at risk
Shelley Brennan
Identity theft, the crime-du-jour for a new class of technologically savvy criminals, is becoming a rampant global exigency affecting hundreds of thousands of victims each year. A thief can use your personal information to 'become' you, allowing them to obtain credit, loans, or even commit crimes in your name. You don't think you are at risk? Think again. All the information needed is readily available: on your credit applications, in company databases, all over the Internet.
Globally each year, identity thieves are near-effortlessly stealing over $12 billion dollars. The victims must then spend, on average, an overwhelming 175 hours to repair the damage. Not only financially devastating, this crime robs us of our most basic and valuable asset - our identity.
"No other practice so vividly captures the fears many consumers have about their privacy. It strikes randomly, leaving lives in shambles," stated US Federal Trade Commission (FTC) Chairman Timothy Muris.
Celebrity identities stolen
The uncomfortable reality is that identity theft has become a sweeping and indiscriminate epidemic—the plague of too-easily-accessible information—that hits the young, old, famous, and middle-class. In a recent high-profile case, a Brooklyn busboy gained access to celebrities' bank, credit, and brokerage accounts, including those of Steven Spielberg and Oprah Winfrey.
A full 19% of all victims have a relationship with the suspect:
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Family member
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9.6%
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Roommate
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2.1%
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Neighbor
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1.4%
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Co-worker
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1.6%
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Otherwise known
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4.8%
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Children are even being targeted. With this crime, generally the theft is not discovered until the child becomes an adult and tries to start their own life, just to discover that at an already precarious point in life, they have been dealt the blow of having to prove their own identity.
Valerie Shoffner, an employee at the New York State Insurance Fund, was arrested last year and charged with obtaining personal identification information belonging to thousands of state employees and citizens who had had dealings with the fund. Allegedly, Shoffner provided this personal data to accomplices who used it to steal more than $100,000, as well as clothes, phones, cameras, and over 50 computers.
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With the proliferation of faceless technology making us feel reasonably anonymous behind our computer screens, we have become accustomed to blindly handing over our SSN/SINs and mother's maiden names for such mundane but covertly dangerous purposes as passwords and identifiers.
Identity thieves are using the latest technology to gather information. Examples of methods used are replicating bank websites, hacking into corporate or bank databases, and even sending spam email containing viruses that will relay your information back to the thieves.
Our current data-based method of collecting and protecting identification information is failing us. What do we do? Protect ourselves, and be open to new options in the field of biometrics, biology-based identification that is not easily duplicated, such as DNA-fingerprints and retinal scans. Fingers and eyes will remain difficult to fake for some time. Fingers and eyes will remain difficult to steal for some time. However, with the rapid advancement of technology, identity theft will not be an easily solved problem.
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Most common types of identity theft:
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Credit card fraud
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50%
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Unauthorized phone/utility service
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25%
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Bank account fraud
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16%
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Fraudulent loans
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9%
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Government documents/benefits
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8%
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Other reported cases of identity theft include gaining employment in the victim's name, obtaining medical services, evading criminal records, obtaining tax refunds, accessing Internet accounts, declaring bankruptcy, leasing residences, and purchasing or trading securities and investments.
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http: vs. https: - do you know the difference?
There is no sure way to completely protect yourself from identity theft. However, here is a checklist to follow, which may minimize your risks:
- Do not give out your mother's maiden name! Don't use it for passwords or any kind of verification. This is a key piece of information that could allow someone to falsely obtain your birth certificate.
- Check your credit history twice per year through your country's major credit-reporting bureaus. Major credit bureaus, such as Equifax, have a service that will send an email alert whenever there is a change to your credit report (such as new credit or debts) so that you can catch a fraud attempt quickly.
- Create a truly distinctive signature that would be very difficult to copy and be conscious of signing the same way each time.
- Carefully review your credit card and bank statements.
- When making purchases online, make sure you are on a secure page - secure pages start with https:// instead of http://.
- Buy a crosscut shredder. Shred - never throw away - all papers with any kind of identifying information on it.
- Do not give out your SSN/SIN unless necessary. Remember that this number is only needed for income, credit, or employment related inquiries.
- Install anti-virus software on your computer. Never open attachments from people you do not know and trust.
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What are governments doing?
Governments around the world are examining the possibility of using biometric technology (which we will cover in next week's article) to safeguard the public. In this scenario, DNA fingerprints, facial scans, and retinal scans would be used to verify identity.
The Canadian government has passed the Freedom of Information and Protection of Privacy Act and has agencies across the country dealing with fraud cases.
In the US, the FTC is supporting a Senate bill known as the Identity Theft Prevention Act of 2000, which will allow for more severe penalties and further regulatory standards.
The UK has set up the National Hi-Tech Crime Unit (NHTCU) to help combat identity theft.
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Help! Steps for victims
Contact the credit bureaus in your country and have them include a victim's statement and fraud alert in your file. Request an updated copy of your credit report. Review the report carefully for any fraudulent entries.
Contact your bank/s and any creditor and advise them of the incident. Have them change your passwords.
Go to your local police department and file an incident report.
Call 1-877-ID-THEFT - the FTC's hotline.
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Self-protection tools
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