Identity Fraud Protection and Education - The Shocking Facts and Figures

AppId is over the quota
AppId is over the quota

CIFAS - the UK's Fraud Prevention Service have published some rather worrying statistics when it comes to identity fraud and general theft of personal data for illicit purposes. Their data shows that there are two types of ID theft:

Identity Fraud - where personal/confidential information which has been stolen is used to obtain goods or services. Or alternatively, the stolen information is often used to forged identity documents including passports, driving licences and more. These false documents can then be used to apply for credit cards, loans or other financial services.

Account Takeover - is another sort of identity theft where an individual's bank accounts are taken over and drained dry.

Neither of these types of identity fraud is pleasant for the victim and in this time of recession within the UK (and worldwide) ID fraud is on the rise. In 2007, 2008 and 2009, there were over 65,000 incidents of identity fraud annually and a sharp rise in the number of account takeovers from 6,272 in 2007 to well over 16,000 in 2009. The steep rise in 2009 onwards, shows that not only that identity theft is becoming more prevalent but also that the knowledge about how to prevent it is not sufficiently widespread. It's not only the individual that suffers from ID theft, but society as a whole. Banking institutions, loan companies, insurance firms and the providers of goods and services all suffer as a result of identity fraud and generally the cost is passed on to the consumer. The result is - everyone suffers. It is estimated that identity fraud costs the UK economy over £1 billion per annum.

Identity Fraud Facts and Figures

The facts and figures of identity fraud are pretty shocking:

The average amount stolen from a victim through identity fraud is over £1,000, yet only 7% of people have been a victim. Despite this, 95% of Britons believe ID fraud is a direct threat to them.

25% of people in the UK do not shred confidential documents at home.

96% of people believe that organisations do not handle their data correctly and as a result they might be at risk of ID fraud through the actions of others.

In the UK, there are around 4.3 million victims of identity fraud to date and the number of victims continues to grow.

Statistics show that around 18 million households in the UK are failing to properly protect themselves from the risk of ID theft.

Yet identity theft protection is simply a matter of education in prevention methods. In many instances, this simply involves encouraging home owners and individuals to shred important and confidential documents before disposing of them in their weekly rubbish - because this is where the biggest threat lies - criminals rifling through your rubbish. Obviously shredding all your paperwork is a hassle and takes time, but there is an alternative. The Japanese have invented an ID protection stamp, which is a simple stamp that when used quickly and easily covers and obscures personal data and cuts out the need for shredding. Confidential waste can then be put to better use and recycled rather than thrown in the landfill - while you can remain confident that your data is safe and secure.

Don't be a victim of ID fraud, protect your data simply and easily with little hassle or fuss.

Adrian writes on behalf of Stamps Direct - the UK's exclusive supplier of the ID protection stamp.

View the original article here

Lesser Known Facts About Identity Theft

AppId is over the quota
AppId is over the quota

Many facts about identity theft are now common knowledge. Identity theft has been rising every year for at least a decade, and it has exploded wildly along with the growth of the Internet. Some hackers steal personally identifiable information and then sell it in private forums to other, would-be thieves. Phishing websites collect your personal information to facilitate identity theft, the list goes on.

Yet there are lesser known facts about identity theft that may help shape your plans to prevent it and how to monitor for it.
Many, but not quite a majority, of cases of identity theft involve family members and close friends. Parents have used a child's Social Security Number to get credit cards and even home mortgages after their own credit is shut down. Unfortunately, this ruin's their child's credit just as they are starting their own lives. And many financial institutions won't let the loans be forgiven unless the child presses charges against the relative.
Making up a Social Security Number (SSN) on a credit card application is identity theft as well as fraud. Since credit reporting is based on the Social Security Number, using a false one results in them checking someone else's credit.
Illegal aliens using your Social Security Number are committing identity theft as well as fraud, whether they use your name as well or only your SSN along with their name. This is done to pass background checks and determine if they are legal to work in the United States. Identity theft has also involved American born children of illegal aliens. Once the child has a Social Security Number, the parent uses that SSN to work and apply for credit. Unfortunately, the teenager can discover they now have a long work history and are at risk of audits by the IRS when they try to work at a fast food joint. The IRS may say they owe taxes on another job or have to explain the Earned Income Tax Credit (EITC) claimed when they were a minor.
Impersonating someone's identity is increasingly used to gain access to health benefits. From using another's Medicaid card and ID to listing the health insurance information of a friend, this permits someone not entitled to the benefits to get free or discount care. Unfortunately, it also adds incorrect information to the correct person's medical records. This can result in bills sent to someone who never even received care. In rare cases, the medical insurance cap is reached and the person paying the health insurance premiums is unable to get care due to the health insurance fraud.
If someone is working using your Social Security Number and then claims retirement benefits, the payments go to whomever retires first. If it isn't you, you will face an uphill battle to prove the money is going to the wrong person. And there are as of yet no court cases in which the person received the benefits paid to the identity thief.
Basic shredding of your bank statements is sound advice but of limited use. Anywhere your Social Security Number and contact information are listed is vulnerable to ID theft. Your doctor's office can be hacked and your personal information stolen as easily and reliably as the Department of Motor Vehicles. An attorney's records include the SSN, address and phone number, allowing those who steal legal records to gain access to even more information for identity theft. You cannot control the information security of all of these hundreds of locations where this information is stored.

While you can never be 100% safe from identity theft, it's important to remain alert. Catching identity theft early is the key to preventing financial ruin. There are services to help protect your identity, but everyone's situation is different, so this may not be the best option for you.

Jason is the Founder and Creative Director of StartProducingWealth.com. For more resources and information on wealth creation and wealth protection, visit Start Producing Wealth.

View the original article here

On Guard Against Identity Theft: Basic Facts

AppId is over the quota
AppId is over the quota

Identity theft is generally considered to be the fastest-growing crime in the United States. The term itself refers to obtaining and using the personal identifying information of another person in order to fraudulently obtain goods and services. Personal identifying information includes things such as your name, date of birth, and Social Security number.

Roughly 700,000 people a year become victims of this crime. However, it is continually on the rise, with thieves employing a wide gamut of tactics from sophisticated online "phishing" scams to low-tech strategies like dumpster-diving. Thus, It is becoming more common - especially since the advent of the information age, when so much vital info about the world - and each other - is practically at our fingertips. That being the case, it goes without saying that practically anyone can become a victim.

The most common form of identity theft is credit card fraud; it is estimated to cost consumers hundreds of millions - some say billions - of dollars per year. Next is utilities fraud, followed by bank fraud. Credit card fraud can be particularly insidious, as you may not discover for quite some time that someone has, for instance, opened a new line of credit in your name and charged thousands of dollars to the account before leaving you stuck with the bill.

There are ways to protect yourself from identity theft. Credit monitoring, for instance, is absolutely critical to identity theft defense. Fortunately, you can obtain a free credit report from each of the three major credit-reporting agencies (Equifax, Experian and TransUnion) annually. Thus, you can get a free copy of your credit report - one from a different credit-reporting agency - every four months. Likewise, regularly checking and balancing your bank account statements will also help you stay abreast of any irregularities that could be indicative of identity theft.

If you are already the victim of identity theft, it can be a long and arduous road getting back to some semblance of normalcy. On average, it is believed that it takes victims of identity theft six months to a year (and sometimes longer) to get matters rectified to some reasonable extent. This includes trying to recover money taken from bank accounts, as well as avoiding liability for goods and services that were never purchased or received (at least by the victim). Unfortunately, there is no sure-fire method to avoid becoming a victim. All you can do is take what precautions you can in order to mount a adequate identity theft defense. Just remember: it's easier to avoid becoming a victim than to recover from being one. In other words, this is truly a case where an ounce of prevention is worth a pound of cure.

The author runs a blog devoted to identity theft defense and protection: http://www.identitytheftdefensehq.com/

View the original article here