Eye on identity theft
How to stay safe and secure online
By Yuki Hayashi
“I’ve always been careful to use secure web sites,” says Claire MacGreggor* of Toronto.
Nonetheless, MacGreggor found herself the victim of identity theft this year when someone got her credit card number and used it to rack up $13,000 in charges. She can’t pinpoint how her identity was stolen. “But I’m probably going to ease up on ordering online now, except through PayPal.”
The sites you use and the e-mail you receive may seem legitimate, but are they? Understanding how identity theft works and knowing what to look for are key to protecting what’s rightfully yours — your personal identity.
IN THIS STORY:
What is identity theft?
Identity theft occurs when someone assumes your identity to make purchases, steal money from your bank or credit card accounts, or obtain new credit or long-distance phone service.
To commit identity theft, a resourceful criminal needs your name, social insurance number and/or bank or credit card numbers. Often, with only one or two pieces of the puzzle, a criminal can discover the rest, usually through mail fraud, telemarketing, or online phishing schemes and spoof sites.
What are the latest threats?
According to Constable John Schultz of the Canadian Anti-fraud Call Centre, the agency has counselled 9,147 identity-theft victims who have lost a total of $8.1 million so far this year (January to October 31, 2008). They were defrauded through the following methods.
- Phishing and spoof sites. Forget the barely coherent e-mail from scam artists of yesteryear. Today’s scammers are drafting well-written phishing e-mails that warn you of a problem with your bank or utility account (or another ostensibly legit entity) and link to realistic-looking spoof web sites that feature secured “lock” icons and corporate logos. You are required to “log in” using your account number and password, which will be used to defraud you. Read more about phishing.
- Advance fee loans and mortgages. Typically, someone who has been turned down by a conventional bank or loan agency goes online in search of loans advertising “no credit check required” or “bad credit okay!” The “loan agency” has a realistic-looking web site and phony street address, and promptly phones the “client” to discuss the online application. After getting personal information from the client, the loan agency requests an upfront fee in the form of a “safety deposit,” “processing fee” or “taxes.” Once this money is paid, the client never hears from the lender again.
- Credit cards. Unauthorized credit card use remains a problem. MacGreggor’s identity theft was flagged only when she received a call from Visa informing her that she was over her credit limit. She was able to clear up the phony charges, though not without getting some headaches along the way.
How can the average citizen stay safe?
“Canadians have to play a role in stopping identity-theft scams,” says Constable Schultz. “We’re advising them to recognize phishing e-mails, report them and stop them. Education is our best weapon.”
Here are his tips.
- Never reply to e-mail requests for personal information.
- Never give personal details to anyone who phones you, solicits you to visit a web site or sends you e-mail. A bank or utility will never contact you online to ask for your personal information, PIN numbers or passwords.
- Read carefully. Grammatical errors and spelling mistakes are sure tipoffs of phishing e-mail and spoof web sites.
- If you get suspicious e-mail, inform your credit card company or bank’s security department (look for a hoax-reporting e-mail address on the firm’s web site), or forward the e-mail to reportphishing@antiphishing.org.
- Install and update anti-virus, anti-spyware, firewall and e-mail filter programs on your computer.
You can also make yourself a more difficult target for online scammers by following these easy steps.
- Set your Internet security setting to High. Although this may slow your surfing on some sites, you can add them to your list of trusted sites once you’re sure they’re safe, and they’ll load at the usual pace.
- Block pop-ups.
- Read your e-mail in plain text.
Prevention is the key to minimizing risk and annoyance. Remaining vigilant will help you keep your computer — and personal identity — safe and sound.
*Claire MacGreggor is a pseudonym.
