The month of October brings to mind falling leaves and pumpkin spice lattes. But did you know that October is also national cyber security month? Now in its 17th year, cyber security awareness is promoted by the Cybersecurity & Infrastructure Security Agency (CISA) part of the Department of Homeland Security.
In this article, we explore how cybercrime can lead to identity theft and fraud and what you can do to reduce your exposure
What is identity theft and fraud?
Fraud refers to crimes in which misleading or false acts are committed for some type of gain. Identity fraud occurs when personally identifying information (such as social security numbers, birthdate, credit card) is used to commit fraud. Identity theft does not always lead to fraud and not all damages are direct monetary losses but can lead to other non-economic harms.
To understand the magnitude of fraud and identity theft, consider that over 3.2 million reports were filed with the Federal Trade Commission (FTC) in 2019, with the top 3 complaint areas alleging fraud, identity theft, and other consumer complaints.1 Of the complaints, 1.7 million reported incidences of fraud which led to $1.9 billion in losses. Victims of impostor scams averaged $500 in economic harm.2
Of course, damages extend beyond direct financial loss: Victims of identity theft fraud can also face indirect financial losses and non-economic harm. Other damages range from increased borrowing costs due to damaged credit scores to reputational harm that impacts job opportunities, and encompasses all types of economic, legal, health and social harm.
Who are most at risk?
Without vigilance, we all can be at risk. Approximately 19% of US residents (50 million people) indicated that they experienced at least one incident of identity fraud in their lifetime, according to the 2016 National Crime Victimization Survey. And if you are on social media, which 49% of the total population is3, with every account you sign up for, every picture you post, and status update, you are giving clues to your identity and increasing your exposure.
Although we all can be at risk, unfortunately perpetrators of fraud and identity theft have focused on people with the following characteristics:
- Age: While younger adults are at the highest risk for identify fraud, older adults face increased risk of falling for fraudulent promotions or prizes.
- Race: Fraudulent activity is frequently targeted towards ethnic groups; and Latinx and Black people are more likely to be victims of non-identity related frauds.
- Income: Both lower income and higher income individuals are highly targeted, the former with debt relief and job scams, and the latter with identity fraud that focuses on taking over existing bank and credit accounts.
- Other vulnerable groups like undocumented immigrants, victims of domestic violence/abuse, people with disabilities (cognitive or developmental) face a higher risk. Our military personnel are also frequently targeted because they can’t always monitor their information.
What can you do to protect yourself?
Thieves take low tech and high-tech approaches to find their victims and commit their crimes. Here are some tips to keep in mind which can help to reduce vulnerability to threats reaching you from your cyber activity :
- Install and keep firewalls up to date on all your devices.
- Practice safe web surfing:
- Check for the green lock or padlock icon in your browser bar which means it is a secure connection.
- When in public, avoid free internet access that provides no encryption. Use your personal Wi-Fi hotspot instead.
- Strengthen your passwords:
- Select the longest password or passphrase possible.
- Be creative! And very importantly, do not use the same password for all your logins.
- Creating and keeping track of unique passwords do pose a challenge. Consider using password managers to generate and remember different and complex passwords for each of your logins.
- Increase your login protection. If your bank or financial institution offers a multi factor authentication (MFA) tool or device, use it!
- Be vigilant of phishing: Avoid suspicious emails and malicious websites that can infect your device with malware or viruses. Keep these warnings in mind:
- Don’t click on unknown hyperlinks; hover over questionable links to reveal the site’s full URL and see where the link really goes.
- Ensure URLs begin with HTTPS. The ‘s” means that encryption is enabled.
- Be wary of emails requesting immediate action. Think before you act or respond to an email that creates a sense of urgency.
- Be social media savvy:
- Limit what you post.
- Report suspicious activity.
- Adjust your privacy settings; consider limiting what you share, like geotagging.
- Connect only with people you know.
- Criminals never rest, and amidst the COVID-19 pandemic, scammers are eager to take advantage of the current state of fear and confusion. Look out for emails offering information about COVID-19 but require you to provide sensitive information, or suspicious emails which can include malicious attachments or links to fraudulent websites.
- Sign up for identity theft protection.
- Regularly review your credit: through April 2021, you can get one free report per week from each of the three major reporting agencies (Experian, Equifax and TransUnion).
What to do if you are a victim of identity theft
If you’re a victim of identity theft, or even suspect that you might, you should take immediate action by notifying the appropriate authorities and recording all evidence of the incident. The Federal Trade Commission (FTC) on its website https://www.identitytheft.gov/know-your-rights provides a very thorough listing of your rights as well as actionable steps. Here are the top three:
Step 1: Call the companies where you know the fraud occurred.
Step 2: Place a fraud alert and get your credit reports.
Step 3: Report identity theft to the FTC.
Optional Step, but generally considered best practice, file a report with your local police department.
Your personal and financial information are always at risk of getting into the wrong hands. While you're enjoying the fall weather, and sipping on that latte, take the time this month to consider some of the tips above to protect yourself.