Many people are willing to use the Internet to commit fraud. Identity thieves try to get website surfers to reveal their personal information, hackers break through defenses to steal credit card numbers and bank account information, and scammers head online in the tens of thousands. Saboteurs spread viruses and criminal gangs are using spear phishing campaigns to get the information they need to empty corporate bank accounts. The Internet can be a very dangerous place indeed.
There were more than 1 million victims of online identity fraud in 2012
A recent study conducted by market research firm Javelin Strategy and Research, indicates more than 1 million victims of identity fraud were created in 2012 than the previous year. That means one in three Americans have now become victims of online fraud. An incredible 12.6 million people have been affected by online fraud in the United States alone. In fact, a new victim of identity fraud is created every three seconds.
Cybercrime is extremely profitable. In 2012 alone, more than $21 billion was lost to cybercrime.
People are engaging in high risk activities online
One of the main reasons why we have experienced such a dramatic upturn in cases of identity fraud is a lack of security awareness. When connecting to the Internet, many individuals fail to realize they are entering a potentially dangerous place. Because of ignorance of the risks, many people fail to take precautions and do not protect themselves.
Would you walk down a street in New York City waving a big bundle of cash in front of you? Would you leave your credit card in a phone booth? Of course not. Yet people do equally risky things online. They provide their bank account details to criminals and enter their credit card details into online forms without checking whether the website is legitimate. They even store all of their intimate information on their laptops, Smartphones and tablets, and then leave those devices in cafes, unlocked automobiles, on trains and on buses.
These things can and do happen, but when it comes to online fraud, the biggest threat to security comes from social media websites.
Social media websites carry a major risk of identity fraud
Most of us have done it. Uploaded a photo to Facebook, posted intimate details of our personal lives, accepted a request from a “friend” we barely know. Some people post virtually every aspect of their lives online: What they had for breakfast or cooked for dinner, where they have been, who they bank with, etc. All of this information is incredibly valuable. Just ask Facebook. The company doesn’t charge users for having an account. Facebook makes money from selling your data to advertisers. They are not the only people who are interested to find out about you. Identity thieves also want your information.
It is easy to get a name from a social media account, also an address. Your birth date is not hard to obtain. What other information have you posted online since you joined Facebook and Twitter?
If someone had access to your accounts, do you think you would be an easy or hard target for an identity thief? How about the complexity of your password? Is that shared across websites? Is it easy to guess if someone knows the name of your pet? Or your child’s date of birth?
The fact is that most people are easy targets and engage in risky behavior. Even celebrities are major targets for hackers and thieves and have had their accounts hijacked. There is a lot of information in cyberspace about you that can easily be obtained by a hacker or criminal with a little time and a modicum of skill.
Fortunately, it doesn’t take much effort to protect yourself. All you need to do is adopt some basic “best practices” when using social media websites and while surfing the net.
Best practice tips to avoid becoming a victim of identity fraud
With a new case of identity fraud happening every three seconds it is vital that you take steps to protect your identity. Otherwise it will only be a matter of time before you become a victim. Possibly only 3 seconds!
Don’t reveal your private and confidential information on Facebook or Twitter
Think before posting. Does the information in your post reveal a little too much about you? Do you trust ALL of your Facebook friends? Do you even know the people who follow you on Twitter? Is your post appropriate for everyone on your friend list? Ask yourself these questions and make sure you use your restricted lists carefully and regularly check your Facebook privacy settings.
Have you made yourself an easy target?
Have you locked all of your devices with a password? Do you store passwords and login information on your computer? Are those files protected with a password? Do you ever access PayPal or your bank accounts via an insecure network? Do you always check that a website starts with https:// (not http://) before entering sensitive information? Remember, the Internet can be a dangerous place!
A Play Store mobile app is not necessarily safe
When you download an app to your mobile phone, do you read the list of data that you are giving that app access to? Do you trust the manufacturer of that app to keep your data secure? It is a pain reading all of the small print, but make sure you know what data you are potentially providing.
Your Smartphone is an encyclopedia of information
Be careful about the data you share online via your Smartphone, and for heaven sake don’t leave it anywhere where it can be stolen. In case of theft, you may compromise your entire email account, your WhatsApp conversations, access to your bank account and much more. Make sure you use a strong password, activate the lock function, don’t automatically connect to Wi-Fi networks and never leave Bluetooth on when it is not necessary.
Mobile phones are insecure
Be exceptionally careful about divulging any information via a mobile phone. That means text messages and phone calls, not only apps and Internet sites. Before disclosing information ask yourself why does the person or company need it? Who are they? How will your data be used? Are you volunteering data? If so, why?
How quickly would you know that you had become a victim of online fraud?
Do you check your bank account frequently? How about PayPal? Your credit card balance? How long would thieves have before you realized you had become a victim. It is not only financial information that can be used to commit fraud. Do you check your health insurance Explanation of Benefits (EoB) statements for signs of fraudulent insurance claims? Do you obtain free annual credit reports from Experian, Equifax and TransUnion?
It is easy to become a victim of online fraud but many people do not regularly check to find out if they have become a victim.
You have become a victim of online fraud! What do you do?
A quick response can limit the damage caused. Act fast.
- Call your bank and credit card provider and place a credit freeze on your accounts
- Change all of your passwords
- Report social media account hacking to the provider of the service
- Obtain credit reports to find out how badly you have been affected
Report all cases of online fraud to the relevant government and law enforcement agencies.