Handy Hints for Identity Fraud

Identity fraud happens when someone obtains your personal information and uses your personal details for their own benefit. This is often done using a variety of false or stolen documents. Things like your driver’s licence, Medicare card, passport, financial cards, birth certificate and others.

• Up to 25% of reported frauds to the Australian Federal Police involve false identities (Source: “Numbers on the Run” – a report by the House of Representatives Standing committee on Economics, Finance, and Public Administration)
• A survey conducted by Westpac and the NSW Registry of Births, Deaths and Marriages found 13% of birth certificates to be false (“Numbers on the Run”)
• Identity related fraud costs Australia over $4bn every year. (Cooper & Vale, 2004)

Common methods include:

• Postal theft – Thieves pick up new unsigned credit cards, bank account information and other documents from your unsecured mailbox;
• Credit and debit card scanning – Thieves use a mini scanner to swipe and read your credit card details. Keep an eye on your financial cards during any transaction to avoid this. Never give a PIN over the phone or leave it with your cards stored in your purse or wallet;
• Telemarketing and phone scams – never give personal details out over the phone, unless you are sure of the source of the call;
• ATM skimming – Thieves attach a device to the ATM that records personal information or PINs, which can then be used to access your account. If you suspect that someone has tampered with the ATM, don’t use it and report the matter immediately to the financial institution.
• Online banking and purchasing – Thieves can access your computer and steal personal information if your computer is not protected. Install security software and keep it regularly updated. Only deal with reputable companies. Never follow a link to your internet banking site – always manually type the homepage address.
• Phishing – This is where thieves send emails appearing to come from legitimate businesses, asking you to update your account details or click on a link. When you do so, they capture your logins and passwords, or install malicious software on your computer that gives them access to your personal information. Delete such emails from your system.
• Spyware – This is hidden software within computers that monitors user activity and can steal private information, sending it over the Internet without your knowledge. You can download anti-spyware software to help protect you from such threats.

Security

• Keep financial and tax documents in a secure place. Always shred or tear up documents with your personal information, including credit card numbers, tax file number, account numbers or similar. Identity thieves go through rubbish. Your credit card and bank statements are a treasure chest of valuable personal information.
• Use a locked mailbox for your mail. That way no one can access your mail before you collect it. If you are unable to lock your mail box ask your financial institution to send this to the local branch for collection.
• Avoid carrying identification documents such as your birth certificate or passport unless you really need to.

Diligence

• Sign financial cards as soon as you get them from your financial institution.
• Always review and reconcile financial statements to check everything is correct. If you notice a discrepancy, immediately inform your institution of your concerns.
• Keep a photocopy of your account records and identification documents in case of theft or identity fraud.
• Get a copy of your credit report regularly through Baycorp Advantage. This lists credit applications made in your name and can alert you to any unauthorised activity.

Technology

• Avoid accessing online account information on public or shared computers. They may contain malicious software that captures your account and password details.
• Install and maintain Virus protection, anti-spyware, and firewall software and update it regularly.
• Ignore spam email, chain letters, and emails claiming to be from government departments, or financial institutions. Delete any emails and attachments from sources you don’t recognise.
• Use different passwords for financial and other accounts and change these regularly.

It may be weeks or months after the theft before you suspect that it may have taken place. You may notice a strange charge on your bank statement, a fine or penalty notice, or an application for credit that is refused.

You can take the following action to prevent further crime being committed:

• Report the incident to the police – Be sure to provide them with backup information like bank statements. Ask for a copy of the police report for your files and as a reference.
• Contact the credit-reporting agency – Tell the credit-reporting agency that you are a victim of identity theft. Ask a note to be put on your file advising of this. It is your right to have a written statement on your file. In your statement, ask that credit providers contact you by telephone before they open any new accounts for you, or change any of your existing accounts. This way, additional accounts being opened in your name should be avoided. The credit agency should send you a copy of your file with these revisions. It should advise you of your right to have all organisations who accessed your file in the past three months notified of these changes. You should ask when this will happen.
• Review your credit file carefully – Look for any accounts you did not open or any unauthorised charges that have occurred. Ensure you can authenticate any “enquiries” made into your credit history. Note any companies or organisations that have made enquiries or opened accounts that you did not authorise
• Close all accounts and correct your credit file – contact the businesses that have opened unauthorised accounts or made unauthorised enquiries and advise them and the credit-reporting agency that you have been a victim of identity fraud. Ask credit providers to close fraudulent accounts, and to tell relevant credit reporting agencies to remove references to the accounts and enquiries from your credit file. Usually, the credit provider will need to conduct an investigation to establish that you are not responsible for any of the debts incurred in these accounts, and you may need to attach supporting information. You may also want to close legitimate accounts you hold so that these can’t be tampered with, and replace them with new accounts and new PINs.
• Keep all documents - Take notes that include dates, names, contact details and what was said. Follow up all conversations and requests in writing, and send these certified mail if you need to post them. Keep copies of all forms and correspondence. Keep all original supporting documents, such as the police report, letters, and your credit file - never put originals in the post. Ask all agencies that you speak to, including banks and other financial institutions, to write to you confirming the actions they have taken or will be taking and when they expect to complete such action. Ask them to provide details of all accounts in your name that have been closed and ensure that they acknowledge that you are not responsible for any further debts incurred. Keep a record of how much time you have spent on this and receipts for how much you have spent on copying, postage, etc, as you may be able to claim these costs back.
• Clearing criminal records - Take action to remove any criminal records, arrest warrants or traffic infringements issued against your name as a result of the theft. The police will probably be your first point of contact. They may need to take your photograph and/or fingerprints to establish that your identity is different from that of the person charged. Ask that your name be removed from the offenders' database and noted as an 'alias' only. Hire a lawyer if you need help to clear your name. Contact Legal Aid or the Law Society in your state or territory for more information.

Sources
Australian Government (2005), ID theft – A Kit to prevent and respond to identity theft
National Crime Prevention Program, Australian Government.

Cooper, C. and Vale, L (2004), Fraud Prevention – Protecting your personal finances, Credit Union Services Corporation Australia Industry Association.