What is identity theft?

Identity theft can cause major financial losses and legal trouble for businesses and individuals. Read on to learn more about what it is and how to protect yourself from it.

What is identity theft?

Also known as identity fraud, this occurs when someone assumes the identity of an individual (or a significant part of it) without consent. Your identity can be compromised if bad actors find a way to access your personal information

Criminals can use your personal information to take control of your bank accounts, rack up credit card debt, or open multiple loans all under your name. Some may also use your identity to file tax returns, get medical procedures, and conduct other types of illegal activity.

How do criminals steal your identity?

If someone gains unauthorised access to documents containing your personal details, your identity could be stolen. Hackers and scammers may also obtain your personal information through phishing attacks, watering hole attacks, or clickjacking.

Criminals don't need a lot of information to steal someone's identity. Often, they can use the personal information they already have and gather more details through public sources, such as social media posts.

How will I know if I'm a victim of identity theft?

It's usually difficult to know if someone has access to your personal information until it's too late. The common signs that someone has stolen your identity include:

• There are unusual bills or charges on your bank statements. If you see unfamiliar activity on your bank statements or credit card history report, it's likely your credit or banking information has been compromised.

• Your mail doesn't arrive. For example, you're expecting to receive a new credit card or an important document, but it never arrives, even though the carrier says the delivery is completed.

• You receive unexpected mail. You receive mail that you didn't expect or documents you never requested. If this happens, your personal information may have been compromised.

• You're being contacted by debt collectors and/or government agencies. Debt collectors may pursue you for missing payments, as criminals may have taken out loans or debt under your name. Government agencies may also get in touch with you about benefits you've never applied for.

• Your details have been leaked in a data breach. Online accounts can be compromised after a hacking or data breach. In these cases, check Have I Been Pwned to see if your email address and password were leaked in the breach.

Missing identity documents such as passports and driver's licenses can also be a sign that you're a victim of identity theft. To replace these documents, refer to your state or territory's guidelines. Lost or stolen passports must be reported to the Australian Passport Office.

What should you do if your identity has been stolen?

If you suspect that your identity has been stolen, you need to secure your information immediately. Here are a few ways to limit potential damage after someone steals your information:

• If your banking information was stolen, contact your bank and ask them to put a block or freeze your account to prevent more unauthorised transactions.

• If your online accounts have been compromised, change your passwords to a more complex one and enable multifactor authentication for an additional layer of security.

• If you suspect someone is using your credit information, request a free credit report to make sure and apply a credit ban to stop unauthorised activities.

• Seek support from IDCARE for specialised support.

After securing your information, report the incident as soon as possible using the following methods:

• Report security incidents and abuse to ReportCyber as soon as possible.

• For scam-related identity theft, report the incident to Scamwatch, the National Anti-Scam Centre.

How to protect yourself from identity theft

Avoid storing personal information on your phone or online accounts, as they can easily be compromised. Regularly check your bank statements and credit reports to see if there are unusual transactions. You should also be wary of giving away personal or financial details over the phone, especially if you did not initiate contact.

When it comes to online accounts, it's important to have strong passwords and multifactor authentication. Don't click on links sent in emails or text messages, and avoid downloading attachments, especially if they're from an unknown sender.

For important documents, make sure they're in a safe place when not in use. Documents with identifying information, like bills, old credit cards, and the like, should be shredded or cut up before discarding. The best way to safeguard against identity theft is by keeping all your personal information secure.