When it comes to protecting your privacy, many of us think primarily about the images and videos we share on social networks. Some keep a tight grip on what they share, while others are less cautious. That said, the security of sensitive data is not always in our own hands. Any account that requires personal information could potentially leave you exposed to security threats. We store our contact and financial data on more and more websites — be it online shops, car rental sites, or simply on social media. The risk grows each time we register with a new website that cybercriminals will gain unauthorized access to precisely this data — when they do, this is known as “identity theft”. Read this article to find out exactly what this is, what forms it takes and how you can protect yourself. You can also find out how Avira Free Security can help you to surf the Internet more anonymously.
Definition: What is identity theft?
Identity theft is where criminals steal a person’s personal information and use it for illegal activities. The aim: To obtain money illegally, fraudulently claim benefits, stalk victims, or other criminal acts. Essentially, the perpetrators pretend to be someone else for some sort of enrichment. Identity fraud is therefore a particularly dangerous form of catfishing — where someone pretends to be someone else.
The challenge: We live in a digital age in which we have to provide a lot of personal data for most platforms, services, and subscriptions. Whether online shops, internet banking, healthcare providers, or even website Ts&Cs — the more active you are on the internet, the greater number of websites and apps there are that hold sensitive and personal data about you.
How to spot identity theft
The sneaky thing about digital identity theft is that it often goes unnoticed for ages. This often means that precious time is lost during which you could have taken action and limited the damage. That said, thankfully there are some tell-tale signs you should look out for so you can act immediately. These include:
- Information about a data breach: You’re informed of a mammoth data breach from a company or online platform either via an official notification or via the news.
- Unusual account activity: You spot unauthorized transactions on your accounts (debit and credit cards, and services such as PayPal).
- Can’t log in to websites: You can no longer log in to your account because the email or password is incorrect.
- Unexpected bills: You receive invoices for purchases, services, or subscriptions that you didn’t make or sign up for.
- Dubious contracts: You receive confirmation that you’ve signed up for something like a mobile plan, dating platform, or streaming service.
- Strange contact requests: You receive calls or letters from people and companies you don’t know.
- Debt collection companies contact you: You get calls from debt collection agencies because you supposedly still have unpaid bills.
- Failed loan application: Your loan application is rejected because someone took out a loan in your name and didn’t repay it.
What are the consequences of identity theft?
The consequences are wide ranging and shouldn’t be underestimated. The financial damage caused by unauthorised payments can destroy entire livelihoods. The same applies to fraudulent payment requests and the involvement of debt collection companies.
That said, identity theft can have devastating consequences that go far beyond financial ones. Many victims are concerned that their reputation and standing among friends, family, or at work will suffer. Apart from that, identity theft always causes victims serious psychological harm. The uncertainty as to whether and which sensitive data is still in the wrong hands requires targeted investigation.
How does identity theft happen?
The causes of identity theft are as varied as the consequences. Criminals have a large portfolio of scams to get their hands on your personal information. Let’s explore some of the most common ones:
Browsing using unsecured networks
The problem arises when transmitting your login information over open networks or website connections that are not secured. To avoid this, make sure you only log in to secure Wi-Fi networks. In addition, before entering sensitive information, check your browser address bar to see if the website address starts with https:// (which denotes an encrypted connection).
Data breaches
Companies and social networks are like magnets for cybercriminals and identity theft. That’s because websites with a huge number of users collect a lot of personal data in one place. By specifically hacking email providers, social media platforms, or online shops, cybercriminals commit data theft and obtain information that they can misuse for their fraudulent activities.
Dark web marketplaces
Cybercriminals don’t always use the stolen data for their own purposes. Often, stolen personal data can be found for sale on the dark web. where criminals can buy victims’ personal data and use it for their fraudulent activities from hard-to-access, highly anonymized marketplaces there. Following major data breaches from websites and databases, compromised credentials often quickly end up on the dark web where the stolen identities are sold on.
Malware activities
Cybercriminals can gain access to your computer using intrusive software or malware, enabling them to gather and steal personal information. There are even tools that scammers use to track their victims’ keystrokes. Such keylogger make it easy for them to view login data, chat histories, and other activities.
Email theft
It’s relatively easy for cybercriminals who gain unauthorized access to their victims’ email accounts to obtain additional sensitive data. The perpetrators search the emails for relevant information and can also send emails themselves to obtain further details. Once they’ve got access to your email account, it’s really easy for many perpetrators to steal your identity.
Phishing emails
phishing attacks are among the most popular forms of internet scam. Here, scammers use phishing emails under a false identity in the hope that unsuspecting recipients will fall for malicious links and file attachments. Malware then ends up getting installed on the unsuspecting victim’s computer or they’re forwarded to fake websites where they enter their login information.
Wi-Fi hacking
Another way identity theft is committed is by hacking Wi-Fi networks. Popular targets are open, unencrypted networks and routers that are insufficiently secure. As soon as the scammers are on the same network as their victims, they have access to all the data and can intercept sent data packets. What’s more, cybercriminals can jump between two conversations, snoop on messages, and forward them.
Wallet theft
Nothing is worse when it comes to identity theft. Since we stash items in our wallets that reveal sensitive information, it makes it easy for criminals to do maximum damage. Such items include identity cards, insurance cards, and debit and credit cards.
Cell phone theft
Just like a wallet, our mobile phone allows crime into the offline world. Our smartphones are a rich treasure trove of personal information, from chat histories, videos, photos, documents to passwords. What’s particularly dangerous is the fact that you can usually make any changes you want to email addresses and passwords right there on your smartphone since security codes and authentication apps are accessible right there on the device.
What are the main types of identity theft?
Identity theft can take many forms and has a wide range of severe consequences. Let your guard down for just a moment, and that can be enough for criminals to enrich themselves with your sensitive information. But what forms of identity theft are there exactly? And what are the various goals that perpetrators pursue with their criminal activities?
- Financial identity theft: This allows criminals to gain unauthorized access to other people’s bank accounts. The aim is to make unauthorized debits and money transfers.
- Medical identity theft: Offenders can use your social security number and personal insurance information to apply for medical care and services.
- Tax identity theft: Criminals use their victims’ tax ID to create false tax returns to obtain possible rebates.
- Criminal identity theft: With this form of identity theft, criminals commit crimes in the name of another person. The intention is to cover their own tracks or incriminate innocent people.
- Social security number theft: Social security information, especially social security numbers, open many doors for criminals. For example, you can apply for credit, loans, unemployment benefits, pensions, and other government support. Once your national insurance number (which goes by other names in different countries) is in the wrong hands, the damage caused can be immense.
- Synthetic identity theft: This is a combination of different real and fake information. For example, perpetrators might combine a real social security number with a false date of birth, which makes it more difficult to track down the culprits. The aim of this scam is to create a completely new identity to open accounts and make purchases undetected.
- Identity theft from children: Identity theft knows no age limit, and even kids can be impacted. Since children have little relevant information associated with their name, this type of fraud is more likely to go undetected. Aims include to get money or a job. Since minors under a certain age cannot be prosecuted for crimes in some countries, perpetrators also use this scam to protect themselves from arrest.
How can you protect yourself from identity theft?
To protect yourself as best as possible from the theft of your sensitive data, you can take some measures yourself.
- Choose secure passwords: Use complex and unique passwords for each of your user accounts. Combinations of lowercase and uppercase letters, numbers, and special characters are particularly secure. Here’s a good example: Jw#5KSh8HFJ3fS?F
- Use two-factor authentication (2FA): Use authenticator apps to boost security around access to your online accounts and services. Along with your email address and password, registering for 2FA also requires you enter a random, time-based code generated locally on your device.
- Lock your smartphone: Use a PIN code or face or fingerprint recognition on your smartphone.
- Think twice before sharing information: Always think twice and never go registering and storing your personal information all over the internet. Also be sure to check that your login data is always transmitted in an encrypted format (see the tip above about checking for an https connection).
- Keep an eye on account movements: Make a habit of going through all the financial transactions on all your accounts with a fine-toothed comb. Even with smaller amounts, you should always know exactly what you spent the money on
- Never send copies of your ID: Never send a copy of your identity card, passport, or driver’s license. Always ask if there are other ways to verify your identity.
- Use a VPN: As soon as you’re on a public network, you should encrypt your data traffic using a VPN (virtual private network). Avira Phantom VPN helps you surf more anonymously on the internet and strengthen your protection from unauthorized access to your devices.
What steps should you take if your identity’s been stolen?
Have you become a victim of identity theft and are wondering what to do now? Read on for an overview of the immediate steps you should take.
- Inform companies: Tell all affected companies, organizations, and individuals immediately about the instance of fraud. You may also need to inform other parties depending on the type of identity theft. Report insurance fraud to your insurance company, medical theft to your health insurance provider, and financial fraud to your financial institutions and banks.
- Call the police: Inform the police right away and file a report.
- Block accounts: Especially in the case of monetary identity theft, you should have your accounts blocked as soon as possible to prevent unauthorized access to your funds.
- Change your passwords: Change all your website and app passwords. If possible, also set up two-factor authentication.
- Report the instance of fraud: Depending on the country in which you live, report the case to the agency or crime reporting center that’s responsible for such types of fraud and document the case.
Recovering after identity theft
At the beginning, we presented the possible consequences of identity theft. As victims recover, they should understand that they’re not alone — many fall victim to such criminal acts every year.
It’s important that victims learn from the incident and pay more attention to the security of their data in the future. You should use strong passwords that aren’t that easy to guess — you should also be more cautious about who and where you share your information and treat dubious emails as such.
Victims of identity theft should also talk to friends, family, or a therapist to process and deal with their experiences appropriately. Specialist self-help groups are also great to gain and provide support by sharing experiences.
Protect your online identity with Avira Free Security
Worried about your personal data being exposed on the internet? Avira Free Security offers essential tools to protect your online identity.
It shields you from online threats like ransomware, spyware, and cryptomining malware, ensuring your data stays safe. Whether you’re browsing the web or making voice and video calls, Avira Free Security keeps your personal information private and secure from intruders.