Identity Theft. Myths, Reality and Safety
by Bob Hubbard

It happens every day. Thousands of people find their bank accounts drained, their credit ruined or worse. The media and others have created a fear, or almost panic situation in people today. "The Internet's Fastest Growing Crime" they say, but is it really? Here I will attempt to expose some of the most common myths concerning this issue.

According to the US Federal Trade Commission (FTC) and Better Business Bureau (BBB) identity theft is actually on the decline while costs rise. This conclusion is based on surveys performed by the FTC and BBB in 2003 and 2004.
- 2003 - 10.1 million U.S. victims - $51.4 billion.
- 2004 - 9.6 million U.S. victims - $52.6 billion.
- 2005 - 9.3 million U.S. victims - $54.4 billion.
- 2006 - 8.9 million U.S. victims - $56.6 billion.

So what is identity theft?
Identity theft falls into four categories:
- Financial Identity Theft - using another's name and SSN to obtain goods and services.
- Criminal Identity Theft - posing as another when apprehended for a crime.
- Identity Cloning - using another's information to assume his or her identity in daily life.
- Business/Commercial Identity Theft - using another's business name to obtain credit.

So how do the criminals obtain your information?
Usually through the victims own negligence.

Wait a minute, I hear you saying. Doesn't it come from all these security breaches and lost laptops I keep hearing about?

Nope.

Very little of that information ends up in criminal hands. Losses through online phishing attempts are also minimal as most people are aware of them and take proper precautions.

The majority of identity theft comes from lost wallets, checkbooks and credit cards, followed by friends or relatives with access to your personal information, or corrupt coworkers. Computer related thefts of information account for less than 10% of the total.

Relatives account for one third of all identity thefts!

But, what about email and message boards and online banking?

Perfectly safe, if you use some common sense.

Myth - Online Banking is not safe.
Truth - Untrue. Online banking is safer, as there are less papers to misplace. Be certain that you are on an encrypted connection (the little lock symbol). By banking online, you can see your transactions within days not weeks, allowing you to detect problems quicker.

Myth - Online ordering is riskier than shopping in person.
Truth - Untrue. If the site is using a reliable real-time processor, your transaction is safer than shopping live. No human sees your personal data, there are no carbons to sign, and no paperwork to lose. Be certain that the site uses a secure processor. When you shop in person, you create a paper trail and often hand your card to an unknown person. When dining out, what really happens to your card after you hand it to your server and they vanish for 5-15 minutes with it?

Myth - Sending a check is safer.
Truth - Untrue. When you mail a check, you have no idea who will see it, or what information might be stolen. Your check contains your name, address and banking information. Paying online with a card through a properly secured payment site is safer.

Myth - If I tell you who I am, you can steal my identity.
Truth - Untrue. Use an internet search engine like Google and look up your name. You might be surprised to see how many people share it. Locally, there are 5 others with my name. Your name alone, is not enough to steal your identity. A thief will need other information such as bank accounts, tax id, or other similarly confidential information. A name alone is very rarely enough. One needs other personal information to match up with it for a name to be of any use to the thief.

Myth - If I use a PO Box I'm safe right?
Truth - Untrue. Your mail can be intercepted at any point. Be certain that you have your box setup so that only authorized individuals can ask for your mail at the desk. Be aware of who has access to your keys, and if you notice a slowdown in mail, make sure no one has placed an unauthorized forwarding order on your box, or home.


So, how can I really be safe?

The first step, is to make sure that your computer is secure. Install a good firewall and anti virus program, and regularly sweep it for spy-ware.

Secondly, don't leave important information like banking information, passwords, pin numbers, or tax information where just anyone can find it.

shred all important documents when you throw them away. This includes utility bills, tax documents and anything with your social security number.

Regularly check your credit reports. You can get a free credit report from each of the 3 main agencies by going to https://www.annualcreditreport.com.
Please note the https rather than the usual http. This signifies a secure web site.

Be wary of giving out account numbers or your social security (tax id) over the phone or by email.

When you buy new computers, be certain to wipe the old one clean. Format the hard drive several times over at least, or better yet, use a utility to overwrite the old drive with gibberish.

Review your accounts regularly and report missing statements and other discrepancies promptly.


The reality is that one is at greater risk of theft from their own carelessness (trusting family, or discarding sensitive documents improperly) than shopping online from a reliable site or participating in a forum. Use some common sense, and you'll be fine.




References:
http://www.bbbonline.org/idtheft/safetyQuiz.asp
http://www.worldstart.com/tips/tips.php/1483
http://www.javelinstrategy.com/
http://en.wikipedia.org/wiki/Identity_theft


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Bob Hubbard is an administrator of the popular martial arts sites MartialTalk.com and KenpoTalk.com. He is president of SilverStar WebDesigns inc., a web site design and hosting company specializing in affordable solutions for martial artists as well as a professional photographer. More of Bob's articles can be found at rustaz.net. Please contact Bob if you would like him to review your martial arts product.

Copyright ©2007 Bob Hubbard - Copies of this article are free to distribute, provided all text is retained intact.

Bob, i will agree with you that a great deal of identity theft does come from people's own negligence. But the fact that online banking is safer isn't entirely true. I have a friend in Toronto who sells firewall security to banks,schoolboards,government agencies. Part of his presentation to banks was to have someone from his company basically hack into the banks system within about a minute or so, and they pretty much ended up with the contract. While yes SSL lines are much better, all it means is that it will take the hacker a little bit longer to get into the system and get what they want. Which is usually their personal information. My friend said he wouldn't even consider doing banking online and he is the one selling the security to these companies.
Everyone should guard their personal info as much as possible. If you know someone's phone number,name and date of birth you have a pretty good shot at getting their identity. Do a reverse look-up from a phone number and a lot of the time you can get a person's name and address. If you also know their date of birth you are well on your way to getting legitimate id of that person. Once you get id in the name of that person you pretty much have the identity of that person. While all of this technology makes it easier for us to do day to day activites, it also makes it easier for the criminals to do their's as well. Your points about checking your credit rating, and reviewing your financial history are bang on. You cannot be too careful anymore. Once someone has taken your identity, it can take you months and years to correct that problem.

Interesting information on the banks. The reported statistics though don't show them being a big risk factor. Note I said it was safer, not safe. :)

And very true on how long it can take to resolve. I think the average is 40-60 hours, but as it is with averages, there are high and low numbers too. :( Your best bet is to be aware and take as many precautions as you can to try to avoid this. The odds are in your favor though.

Current US Population, about 307 million people.
2006 victims? 8.9 million or 2.9% of the population.

I'll take those odds. They are better than the chances given for complications with my meds. lol!

Some more info:


According to Javelin, only 6% of ID theft issues come from Data Thefts, and 15% comes from corrupt employees. 45% comes from carelessness, or friends. (30% and 15% respectively.)

Seems I'm safer trusting my bank than my brother (if I had one, lol)


Quote:
The majority of identity theft comes from lost wallets, checkbooks and credit cards, followed by friends or relatives with access to your personal information, or corrupt coworkers. Computer related thefts of information account for less than 10% of the total.
When I worked at one ISP, tech support also handled account inquiries, and all customer records were kept in the call room in unlocked filing cabinets. These files included credit card and tax ID information, all in the clear. Nothing stopping anyone from doing some late night reading other than honor really.

Corrupt employees will always be a problem, but I'm more worried about the waiter I give my card to, than my bank.

Some breakdowns:
http://www.bbb.org/alerts/images/js_bbb_01.jpg
http://www.bbb.org/alerts/images/js_bbb_03.jpg
http://www.bbb.org/alerts/images/js_bbb_05.jpg

So, while card breaches are a part of the problem, it's not a big part of the problem. In the case you cited, the card holders are protected by the card issuers once a problem is known to exist. That is one of the reasons why I rarely write a check anymore, and use online banking and my card in most transactions.

Don't get me wrong. The amount of our personal information being tracked and sent out of the country (and out of our control in many cases) is growing. There is a need to be concerned and informed. However, I don't believe we have much need to worry as the trend the last few years has been for ID theft to decline, as more people become informed and all parties involved act to better safeguard this information.

It probably is more likely to have a friend or family member try to steal your identity because they will already know a great deal of information about you. Here in Canada it is recommended to not carry your SIN (Social Insurance Number) card with you or your birth certificate. With those 2 pieces of id people can get other id in your name and then you are in deep trouble. You should definitely report any lost or stolen id to the police that way there is a record of it. A friend showed my a website quite a few years ago that had valid credit card numbers on it and with that info it used to be quite easy to get another card with your number on it. Basically you have to watch out everywhere you go. Look over your financial statements every month and question any irregularities right away with your financial institution. The concept of trust is quickly being eroded with the advances being made in technology.

Paper shredders are your friend :)

Just don't confuse it for the fax! :D

Identity Fraudis done when an impostor obtain pieces of personal identifying informations like your name, credit card number, Social Security number without your permission.


How do this thieves steal your identity?




Skimming- stealing your credit/debit card numbers using special storage device when processing your card.
Changing Your Address – diverting your billing statements to another location by filing change of address.
Dumpster Driving – rummaging trash looking for bills or other paper with your personal information on it.
Pretexting – using false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.
Phising – pretending being a financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
Old-Fashioned Stealing – stealing wallets,mails that include bank and credit card statements; pre-approved credit offers, and new checks or tax information.