Lesson 28: Protect Your Identity
Have you ever wondered just who knows what about you? And how they learned what they know? Are you really as careful as you think you are with the information you share?
I was watching TV last night and the question was asked "how did you hack my password?". The answer was quick - "Easy, you say it out loud as you type it in!"
So I'll ask again, are you really as careful as you think you are with the information you share?
Have you ever had one of those power company representatives knock on your door and offer you a better rate - they just need to see your account number first - they already have your address, they'll get your name and the account number off the bill you hand them.
Or filled in a competition form with your name, address and phone number?
Given your date of birth or PIN or PAN to someone on the phone "as a security measure, to make sure you are who you say you are?"
Just last week a friend had her credit card billed for $4,826 for car parts that she hadn't ordered. She made sure her husband hadn't ordered them too, then she rang the bank. Turns out her credit card details had been stolen and used without her permission.
It was a worrying time for her, she had a $4,826 bill that wasn't hers. Thankfully because she was on to it almost straight away, the bank was able to investigate and refund the stolen money to her account. They are now in the process of tracking and dealing with the thief.
Nancy is very security conscious, and her experience has had a satisfactory ending. But not everyone is as on the ball, only checking account balances once a month when their statement arrives, and sometimes not checking it at all.
Closer to home, a family member had their identity stolen and their bank accounts hacked, and they had no idea they were helping the criminals to rob them blind - that's how good the story was. It took another family member noticing a difference in behaviour, and then asking questions, then going to the bank, and contacting police to get the matter resolved. And it was a very, very worrying and stressful month.
There are many types of identity crime, but the two most common types are:
Identity Fraud - the gaining of money, goods, services or other benefits through the use of a false or fictitious identity.
Identity Theft - the theft of a pre-existing identity, belonging to either a living person, or a person who is deceased.
Identity crime is a $200 billion dollar a year industry worldwide, Australians are losing around $3.1 billion each year and it affects around 12% of Australians, and it's becoming more and more common.
Victims have seen money disappear from their accounts, had their credit ratings ruined, their assets seized and their lives ruined.
How Identity Crime Happens
Your personal and financial information can be compromised in many ways, but some of the common methods are:
Protecting Yourself Against Identity Crime
You can protect yourself against identity crime and it only takes about 10 minutes a week.
1. Set up an online account with your credit card company and your bank/s and check your statements and balances each week. It takes about two minutes, maybe less. If someone uses your card or account without permission you will find out sooner rather than later and like Nancy, you can get the bank or credit card company straight onto it, although these days financial institutions are on the ball and often pick up discrepancies before you do.
2. Shred. Before you put anything that has your name, address, or any account numbers on it, shred it. Any paper that has any identifying information on it that you receive, be it bank statements, electricity bills, newsletters, magazines, investment reports, finance offers etc, shred it. Then use the shredded paper as mulch or donate it to your local pet shop. If you don't have a shredder, tear it up, wet it and turn it into paper pulp before putting in the bin or compost.
3. Don't carry all your credit, debit and membership cards with you all the time. Only carry the cards you need at that time.
4. Keep all financial paperwork in a safe place at home. If you don't have a safe, keep them in a locked filing cabinet or file box. This is also a good place to store the credit and debit cards you aren't carrying.
5. If you do have a home safe (and they are not expensive, find a good security store and ask for details) make sure it is cemented and bolted into the floor (the best place) or a wall and make it heavy so a thief wouldn't be able to carry it out or even wheel it out on a dolly.
6. Keep your computer security up to date. Make sure your anti-virus and anti-spyware is up to date and run regular in-depth scans and update regularly. Keep your firewall up to date. Beware of phishing. Phishing is an email or pop-up that looks legitimate but that then asks you to click a link and then provide personal information. Delete them immediately or forward them to the organization concerned. Also, be careful about downloading attachments from unknown sources.
7. Secure your letterbox with a lock and make sure mail is cleared regularly.
8. Always cover the keypad at ATMs or on EFTPOS terminals when entering your PIN, and be aware of your surroundings - is anyone trying to observe or watch you, are there any strange or loose fixtures attached to the machine or terminal?
9. Don't use public computers (for instance, at an internet café), or unsecured wireless "hotspots", to do your internet banking or payments.
10. Be cautious of who you provide your personal and financial information to - ensure that there is a legitimate reason to supply your details. Don't be reluctant to ask who will have access to your information and which third parties it may be supplied or sold to. Ask to see a copy of the Privacy Policy of the business before you supply your details.
11. Only use trusted on-line payment websites for items won at on-line auctions or purchased on-line. Never make payments outside of trusted systems - particularly for goods which you have not yet received.
12. Regularly obtain and review a copy of your credit history report. Report any unauthorised transactions or entries ASAP.
13. If your cards haven't been updated yet, ask your bank or financial institution for a credit or debit card with an embedded micro-chip - they are more secure than cards with only magnetic stripes.
14. If responding to an on-line employment or rental advertisement, be wary of transmitting personal information and copies of documents via email or electronically. If asked to attend an interview, do some prior research to confirm the bona-fides of the company or employment agency.
15. In relation to social networking sites, always use the most secure settings. Take extreme care if placing personal details such as date of birth, address, phone contacts or educational details on your profile, and do not accept unsolicited "friend" requests.
Taking Action if the Unthinkable Happens
If you believe you have been the victim of identity crime you need to take action immediately by reporting the matter to your local police. The Commonwealth Government has implemented a scheme to assist victims of Commonwealth Identity Crime to recover their identity if it has been compromised.
Then call all the lenders in question to put holds on or even close the accounts. If you know where and when the fraud took place call the police in that area as well. In reality, unless a large sum of money is involved, the police may not seem to be doing much. But filing a police report will help you and them in overall efforts to curb identity crime.
Keep all notes and other documentation related to this in your "Pending" file folder. You don't need to print everything, have a file on your computer for them. If the paperwork looks like it's going to fill the entire folder create a new one called "Identity Theft" and place it behind your "Pending" folder in your filing system. When the matter is resolved put the folder and all related paperwork in your archived files for two years, just to make sure the matter is fully resolved. Then shred the papers.
Be sure to keep a list of your credit card, bank, license and utility company account numbers as well as the emergency contact numbers in your files. Use a code that only you will understand (and make sure it's one you'll remember). You don't want a thief leaving you a thank you note for the file labelled "Passwords" or "Credit Card Accounts". If you have a safe, it's a no brainer - that's where they should be kept.
Lesson 28 Challenge: Entire books have been written about identity crime. This week's lesson is just the beginning. This week get all your personal details together and put them in a safe place. Put a lock on the letterbox. Practice shredding all paperwork with personal details on it.
I was watching TV last night and the question was asked "how did you hack my password?". The answer was quick - "Easy, you say it out loud as you type it in!"
So I'll ask again, are you really as careful as you think you are with the information you share?
Have you ever had one of those power company representatives knock on your door and offer you a better rate - they just need to see your account number first - they already have your address, they'll get your name and the account number off the bill you hand them.
Or filled in a competition form with your name, address and phone number?
Given your date of birth or PIN or PAN to someone on the phone "as a security measure, to make sure you are who you say you are?"
Just last week a friend had her credit card billed for $4,826 for car parts that she hadn't ordered. She made sure her husband hadn't ordered them too, then she rang the bank. Turns out her credit card details had been stolen and used without her permission.
It was a worrying time for her, she had a $4,826 bill that wasn't hers. Thankfully because she was on to it almost straight away, the bank was able to investigate and refund the stolen money to her account. They are now in the process of tracking and dealing with the thief.
Nancy is very security conscious, and her experience has had a satisfactory ending. But not everyone is as on the ball, only checking account balances once a month when their statement arrives, and sometimes not checking it at all.
Closer to home, a family member had their identity stolen and their bank accounts hacked, and they had no idea they were helping the criminals to rob them blind - that's how good the story was. It took another family member noticing a difference in behaviour, and then asking questions, then going to the bank, and contacting police to get the matter resolved. And it was a very, very worrying and stressful month.
There are many types of identity crime, but the two most common types are:
Identity Fraud - the gaining of money, goods, services or other benefits through the use of a false or fictitious identity.
Identity Theft - the theft of a pre-existing identity, belonging to either a living person, or a person who is deceased.
Identity crime is a $200 billion dollar a year industry worldwide, Australians are losing around $3.1 billion each year and it affects around 12% of Australians, and it's becoming more and more common.
Victims have seen money disappear from their accounts, had their credit ratings ruined, their assets seized and their lives ruined.
How Identity Crime Happens
Your personal and financial information can be compromised in many ways, but some of the common methods are:
- theft of mail articles;
- searching through discarded mail or personal items in household or commercial rubbish;
- theft of wallets, bags and purses;
- skimming of credit and debit cards via ATMs or EFTPOS terminals or by skimming the new tap-n-to cards;
- Internet scams designed to obtain your personal information, such as "phishing" and "spoofing" (copying) of Internet banking and payment websites;
- the use of malicious computer programs ("malware") or spyware to record and transmit your on-line activity;
- telemarketing scams;
- fake offers for employment or property rentals; and
- use of details provided on social networking sites or other on-line services such as dating sites.
Protecting Yourself Against Identity Crime
You can protect yourself against identity crime and it only takes about 10 minutes a week.
1. Set up an online account with your credit card company and your bank/s and check your statements and balances each week. It takes about two minutes, maybe less. If someone uses your card or account without permission you will find out sooner rather than later and like Nancy, you can get the bank or credit card company straight onto it, although these days financial institutions are on the ball and often pick up discrepancies before you do.
2. Shred. Before you put anything that has your name, address, or any account numbers on it, shred it. Any paper that has any identifying information on it that you receive, be it bank statements, electricity bills, newsletters, magazines, investment reports, finance offers etc, shred it. Then use the shredded paper as mulch or donate it to your local pet shop. If you don't have a shredder, tear it up, wet it and turn it into paper pulp before putting in the bin or compost.
3. Don't carry all your credit, debit and membership cards with you all the time. Only carry the cards you need at that time.
4. Keep all financial paperwork in a safe place at home. If you don't have a safe, keep them in a locked filing cabinet or file box. This is also a good place to store the credit and debit cards you aren't carrying.
5. If you do have a home safe (and they are not expensive, find a good security store and ask for details) make sure it is cemented and bolted into the floor (the best place) or a wall and make it heavy so a thief wouldn't be able to carry it out or even wheel it out on a dolly.
6. Keep your computer security up to date. Make sure your anti-virus and anti-spyware is up to date and run regular in-depth scans and update regularly. Keep your firewall up to date. Beware of phishing. Phishing is an email or pop-up that looks legitimate but that then asks you to click a link and then provide personal information. Delete them immediately or forward them to the organization concerned. Also, be careful about downloading attachments from unknown sources.
7. Secure your letterbox with a lock and make sure mail is cleared regularly.
8. Always cover the keypad at ATMs or on EFTPOS terminals when entering your PIN, and be aware of your surroundings - is anyone trying to observe or watch you, are there any strange or loose fixtures attached to the machine or terminal?
9. Don't use public computers (for instance, at an internet café), or unsecured wireless "hotspots", to do your internet banking or payments.
10. Be cautious of who you provide your personal and financial information to - ensure that there is a legitimate reason to supply your details. Don't be reluctant to ask who will have access to your information and which third parties it may be supplied or sold to. Ask to see a copy of the Privacy Policy of the business before you supply your details.
11. Only use trusted on-line payment websites for items won at on-line auctions or purchased on-line. Never make payments outside of trusted systems - particularly for goods which you have not yet received.
12. Regularly obtain and review a copy of your credit history report. Report any unauthorised transactions or entries ASAP.
13. If your cards haven't been updated yet, ask your bank or financial institution for a credit or debit card with an embedded micro-chip - they are more secure than cards with only magnetic stripes.
14. If responding to an on-line employment or rental advertisement, be wary of transmitting personal information and copies of documents via email or electronically. If asked to attend an interview, do some prior research to confirm the bona-fides of the company or employment agency.
15. In relation to social networking sites, always use the most secure settings. Take extreme care if placing personal details such as date of birth, address, phone contacts or educational details on your profile, and do not accept unsolicited "friend" requests.
Taking Action if the Unthinkable Happens
If you believe you have been the victim of identity crime you need to take action immediately by reporting the matter to your local police. The Commonwealth Government has implemented a scheme to assist victims of Commonwealth Identity Crime to recover their identity if it has been compromised.
Then call all the lenders in question to put holds on or even close the accounts. If you know where and when the fraud took place call the police in that area as well. In reality, unless a large sum of money is involved, the police may not seem to be doing much. But filing a police report will help you and them in overall efforts to curb identity crime.
Keep all notes and other documentation related to this in your "Pending" file folder. You don't need to print everything, have a file on your computer for them. If the paperwork looks like it's going to fill the entire folder create a new one called "Identity Theft" and place it behind your "Pending" folder in your filing system. When the matter is resolved put the folder and all related paperwork in your archived files for two years, just to make sure the matter is fully resolved. Then shred the papers.
Be sure to keep a list of your credit card, bank, license and utility company account numbers as well as the emergency contact numbers in your files. Use a code that only you will understand (and make sure it's one you'll remember). You don't want a thief leaving you a thank you note for the file labelled "Passwords" or "Credit Card Accounts". If you have a safe, it's a no brainer - that's where they should be kept.
Lesson 28 Challenge: Entire books have been written about identity crime. This week's lesson is just the beginning. This week get all your personal details together and put them in a safe place. Put a lock on the letterbox. Practice shredding all paperwork with personal details on it.