The broad term "identity theft" encompasses any
type of crime in which a thief wrongfully obtains and uses another person's
personal information - such as their name, Social Security number, bank and
credit card account numbers or any other identifying information - for fraud or
deception, usually for financial gain.
The number of different identity theft scams is growing
rapidly. Following are the most prevalent:
Phishing - In this scam, recipients receive e-mails directing
them to phony Web sites (most often, the supposed sites of banks or
well-recognized national and Web retailers) and prompting them to provide
personal information. The e-mails may threaten to freeze the recipient's bank
account, or ask for information in order to "update their records,"
or may even offer merchandise for free in exchange for information.
The FBI has called phishing "the hottest, most
troubling new scam on the Internet," with an estimated 57 million
Americans having received a phishing e-mail. Thieves have become very adept at
disguising e-mails and Web sites to make them look authentic, which is one
reason why incidents of this type of fraud are rising so quickly. Phishing can
also be perpetrated over the phone, with thieves simply calling and asking for
personal information.
Pharming - In this scam, victims are redirected to imposter
Web pages when typing in valid Web addresses. Hackers are able to do this by
exploiting a shortcut some Internet Service Providers (ISPs) have instituted to
speed up Web browsing.
Evil twins - These are wireless networks that pretend to
offer legitimate Wi-Fi Internet connections in Wi-Fi hotspot areas (like those
now found in many coffee shops, airports and hotels). Through these networks,
hackers can eavesdrop on unprotected wireless computers and scour them for
passwords and other sensitive information.
Trojan horse virus - These viruses, usually released by an
e-mail attachment, will scour your hard drive (if opened) for personal and
financial information (such as Social Security and account numbers and PINs)
and send this information back to the thief's database - probably without you
even being aware of it.
Spyware - This is similar to the Trojan horse virus in that
it is also unknowingly installed on a victim's computer (it may be packaged
with other software). The more malicious varieties of spyware search your hard
drive for passwords and other personal information and can even monitor your
keystrokes to discover passwords and account numbers that you have entered on
your computer.
The Nigerian scam - This involves primarily e-mails, but
also letters and faxes, supposedly from a government official (usually in
Nigeria) asking individuals to help disburse millions of dollars from his
country in return for a percentage of the money. Recipients are asked to
provide bank account information so the money can be deposited into their
accounts, which the thieves then use to clean out their accounts.
Telephone and telemarketing fraud - This can take many different
forms, from phone calls you receive from imposters claiming to be from your
bank or credit card company and asking for personal information to callers
offering free travel, other prizes and get-rich-quick "opportunities"
in exchange for personal information, as well as fraudulent telephone fund
raising.
Mail fraud - Many of these schemes are similar to telephone
fraud except that thieves mail official-looking correspondence to individuals
that's supposedly from their bank asking for personal information. Mail may
also promise free travel and other prizes and be used for fraudulent fund
raising.
How do thieves get your information?
Much of the attention on identity theft has been focused on
new "high-tech" techniques that identity thieves can now use to
obtain personal information, such as by using email and the Internet. But most
theft still takes place in decidedly low-tech fashion:
* The theft of
information from businesses or employers via bribes to employees, hacking of
records or simply thieves pilfering the information themselves.
* The theft of
mail right out of individuals' mailboxes. Bill payments, bank and credit card
statements, new blank checks, tax information and pre-approved credit offers
are the most vulnerable pieces of mail that offer thieves unlimited
opportunities for fraud.
* "Dumpster
diving," in which thieves sift through trash bins in search of unshredded
mail and account statements containing valuable personal information.
* "Shoulder
surfing," in which thieves stand behind individuals at ATMs and try to see
and memorize their PINs.
* The theft of
credit and debit card numbers (most often in retail stores and restaurants) via
a process known as "skimming." In this scam, salespeople or waiters
run your card through a small device called a skimmer that collects and stores
the card information, which waiters and salespeople often sell to thieves for
as much as $50 per card.
* The theft of
wallets and purses containing credit, debit and Social Security cards.
* The illegal
acquisition of credit reports by thieves posing as your landlord or employer.
All of these low-tech identity theft tactics are in
addition, of course, to the many different way thieves have discovered for
stealing your identity electronically via Internet and e-mail scams.
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