Identity Theft and Identity Fraud, when do they occur?
Identity [ID] theft occurs when an individual’s personal details are stolen and identity [ID] fraud is when that information is then used by criminals for financial gain. The impact on the individual can be far reaching and costly. The crime can remain undetected for some time, allowing the fraudster to use the stolen identity to open accounts, pay for goods and services and support the activities of organised criminal gangs. The long-term result can see the victim experiencing difficulties when they come to want to open and manage new accounts online in the future.
5 most common types of ID theft
- The physical theft of personal possessions and mail giving access to personal information.
- Hacking software used to steal personal information from computers and smart phones.
- Cold-calling or vishing, where fraudsters pretend to be a genuine business checking on personal details.
- Phishing where fraudsters send an email posing as a reputable company and ask the recipient to download a link which then allows them to access personal details.
- Data breach, where customer information is stolen from a service organisation.
Identity theft has hit record highs in the UK
According to the latest [2018] report by fraud prevention service Cifas, identity fraud continued to rise, hitting an all-time high of 174,523 cases in 2017. 95% of these cases involved the impersonation of an innocent victim and 8 out of 10 fraudulent applications were made online. Cifas noted identity [ID] fraudsters moving to exploit more accessible products such as mobile phone contracts, online retail accounts and retail credit loans and short-term loans, which are less likely to be subject to the same strict checks as bank accounts and credit cards.
Research by virtual private network comparison site Top10VPN.com at the time of the last Cifas report in April 2018 revealed that fraudsters operating on the dark web could buy a person's entire identity for just £820. The average person has many accounts making up their online identity. Online bank details were found to be worth £168 on the dark web, PayPal logins circa £280, passport details around £40, eBay account details circa £26 and access to profiles on Match.com, Facebook and Deliveroo less than £5. The research found that compromised PayPal accounts were amongst the most widely traded items. The findings showed how easy it was for fraudsters to acquire personal information on the dark web and the variety of ways they could access their victim’s money.
£820...A person's entire identity
£168…Bank details
£280…PayPal logins
£40…Passport details
£26…eBay account details
£5…Facebook details
£5…Deliveroo details
8 tips to protect your data from identity theft.
Many organisations provide advice for consumers on how to protect their identity, some examples include:
- Shred papers containing personal details before throwing them away.
- Never reveal password, login details and account numbers to callers
- If you are concerned about the source of a call, wait five minutes and call back.
- Check statements carefully and report anything suspicious to the bank or financial service provider concerned.
- Notify financial providers if an expected bank or credit card statement doesn’t arrive.
- When moving house, use a Royal Mail redirect service for 12 months.
- Change online passwords frequently and use obscure passwords.
- Keep security software on computers, tablets and phones up to date.
It is right that consumers should expect the organisations that they buy goods and services from to perform validation checks on their identity. A premium identity check service will provide users with far more than confirmation of identity. It builds a profile and framework surrounding the subject in question to include previous linked addresses and identities, credit bureau profiles, together with previous personal lines claims history, to include behaviours and historic insurer relationships.
Onboarding a new customer or verifying a customer’s identity
CRIF’s ID Verification service, ID Check, supports organisations when they are on-boarding a new customer or verifying an existing customer’s details. ID Check is able to accurately screen the personal details provided against a wide range of positive and negative databases in real time, providing a summary report, risk score and granular details which allow the end user to quickly and easily verify an individual’s identity and highlight potential risk.
Recognising the growing need to support customers in this challenging environment, CRIF has also recently acquired a majority share in Inventia – the digital identification software company. Inventia's solutions help strengthen the security of transactions and access to sensitive data through the ‘ID-CERT' technology, which checks the identity of the client through a two-factor biometric system, in full compliance with KYC (Know Your Customer) regulations, whilst improving the customer experience.
With proactive innovation in mind, CRIF is also exploring possibilities to scan the internet to discover if a customer’s personal and financial data are at risk or have already been stolen and traded over the open web and dark web. Monitoring the dark web provides the opportunity to intercept stolen customer details and warn them in order to avoid a possible fraud. The customer benefits and fraud prevention opportunities represent interesting potential.
