Originally published in Comments - Summer 2011
In April 2011, in what was arguably one of the largest Internet security break-ins, Sony Play Station suffered a massive data breach of its online network. The "thief" was able to acquire the names, addresses, emails, birthdates, passwords, security questions, phone numbers and other personal information from 77 million user accounts. Epsilon Marketing, a Dallas-based email marketing provider, was also recently the victim of a data breach, which resulted in the thief obtaining the names and email addresses of some customers from approximately fifty client businesses, which included large retailers and financial institutions.
Should these victims be worried? Most certainly, since the information stolen could be used by criminals to commit identity theft.
Identity theft is the unauthorized and often illegal acquisition and use of an individual's personal identifying information by a third party for illicit financial gain. In unusual circumstances, it might be in support of extortion designed to cause the victim financial hardship. Generally, identity thieves use someone else's identity and credit information in order to obtain money, services or products. The criminals use an array of methods to obtain identity information from dumpster diving to sophisticated system compromise over the internet.
Common identity theft methods that the public should be aware of include the following:
- Dumpster Diving – The thief would go through the victim's trash to try to find valuable personal information. This information can come in the form of utility and credit card bills for example.
- Skimming - An electronic method of capturing a victim's personal information with the use of a device that scans a victim's credit card and transfers the information collected to another device.
- Phishing – One of the most pervasive methods used, phishing is an internet email scheme that tries to lure the unsuspecting victims to counterfeit websites in order to obtain personal and financial information.
Prevention is the best way to deal with this crime. While you cannot 100% guarantee that you will not become a victim (as in the recent headlines), you can make it more difficult for the criminals. Here are some tips:
- Because identity theft can happen by way of internet, telephone or regular mail, you should be particularly wary of any emails, calls or mail that are attempting to obtain your personal or financial data.
- Limit the credit cards and identification information that you carry in your wallet or purse. Do not regularly carry your passport, social insurance number (SIN) card or birth certificate, but keep them in a safe place.
- Install and regularly update virus and spyware detection software on your computer.
- Invest in a shredding machine for bills and other personal information that may be discarded.
- Check your credit bureau for unusual activity at least annually using websites such as www.equifax.com or www.transunion.ca.
- Memorize your passwords and personal identification numbers so you do not have to write them down.
Could you be a victim? The best way to determine this is to regularly monitor your financial accounts. The RCMP offers advice should you suspect or know that you are a victim of identity theft or fraud. Visit their website at www.rcmp-grc.gc.ca.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.