Identity Theft
(Name of author)
Introduction
Identity theft is a type of scam where malicious attackers steal financial and personal information of their victims, assuming their identity and using it to hide from law enforcement and perform illegal financial activities. Identity theft was the most reported crime by consumers to the Federal Trade Commission (FTC). In 2014, over 12 million cases of identity theft cases were reported in the United Sates, costing the victims over $16 billion . Although this was a decrease from the previous year and issues of identity theft have been on declining since then, citizens are still advised to remain vigilant and protect their personal information.
The major contributing factor to identity theft is technological advancements that have resulted in many loopholes that criminals can take advantage of and defraud unsuspecting citizens. There is a technique known as cloning that criminal use to copy the credit card details of a person onto a fake card and start using the card . The process is extremely simple and involves using a small pocket-size gadget that copies the information when a credit card is swiped through the device. This process takes only a few seconds and is mainly used in places where numerous transactions are carried out.
Vulnerabilities in information systems also have brought about many network breaches that have led to the leaking of personal information to attackers.
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Key words: Defraud, Identity theft, Skimming, Phishing
Hackers use methods such as phishing, malware, and viruses to gain unauthorized access to the systems . The technologies also offer a platform where criminals can discretely sell the stolen information through dark net websites or carry out various fraudulent activities like online shopping using stolen credit cards without getting apprehended.
Other ways that people with criminal intention can use to acquire personal information of other individuals include; stolen or lost wallets, credit cards and check book, friends and acquaintances obtaining your information, telephone transactions, stolen mail, and online purchases.
Types of Identity Theft
There are various types of identity theft that can be used by people with criminal intentions to carry out different forms of crimes using the other people’s identity. Credit card fraud is the leading type of identity theft because of the ease with which credit cards can be stolen or their information copied. The copied information is mostly sold on the internet where buyers can buy the data and copy them on bogus cards. The use of stolen cards is also relatively easy and safer than other types of identity theft. Fraudsters can use the cards to purchase goods and services online without the knowledge or consent of the rightful card owner.
Credit card theft is closely followed by phone and utility fraud. This happens when criminals call an unsuspecting person and say they are from a certain utility service company.
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Key words: Identity theft, Phishing
The criminals are so sophisticated that they use spoofing methods so that the caller identification on the phones shows that they are actually from the said company. They tell the victims that their bills are overdue, that they should pay the bill as soon as possible, or the service will be discontinued. Since the fraudsters target critical services like electricity that people are not willing to go without for even a short period, most people give out their credit information to be used to pay the bills. This is how the criminals get their hands on the personal information.
Other types of identity theft include bank frauds where imposters steal money from people’s accounts, government document and benefit frauds that are mostly popular among illegal immigrants who steal people’s identities and use to get employment and loan frauds.
Solutions to Credit Card Thefts
The economic impacts of credit card theft that is the most widespread identity theft on the victims and the nation have prompted various stakeholders to act swiftly and find solution to the problem. This is to prevent identity theft issues, consequently safeguarding the victims’ and nation’s economic status. Various ways have been brought forth as means of eradicating credit card fraud including improved techniques for authentication in financial organizations, enhanced security for personal information in vulnerable institutions, and making it mandatory for companies having critical personal information to report any network breaches whenever they happen.
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Key words: Defraud, Identity theft, Phishing
All these methods proved to be futile in mitigating identity theft but were a milestone in moving in the right direction to prevent the fraud. Two solutions are currently available that offer financial institutions as well as victims effective ways of preventing identity theft. These are; monitoring of credit card activities and the use of chip cards.
Monitoring of Credit Card Activities
Regular monitoring of credit activities should be adopted to identify any unusual activities in the accounts. If irregular or suspicious activity is observed, the credit card owner should be contacted first to verify this information. If the card has indeed been compromised, the account should be suspended immediately, and the relevant law enforcement authorities alerted of the crime. The main benefit of this method is that it provides clients with measures to stop any damages that credit card fraudsters might have caused early enough. It also saves huge sums of money for both the victims and the financial institutions that would otherwise have been lost.
Use of Chip and PIN Cards
The traditional magnetic strip credit cards are still widely used in the United States. These cards do not require PIN inputs before a transaction is authorized, making them easy targets for criminals. Duplication of these cards is also relatively easy through cloning or skimming methods. These cards should be replaced with chip and PIN cards that are more difficult to duplicate.
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Key words: PIN and CHIP
Requiring PIN inputs before a completing a transaction also significantly enhances credit card security. This will deter identity theft criminals from targeting the cards giving card owners peace of mind.
Conclusions
Identity theft can have various effects on both the victim and the nation as a whole. Stolen credit cards cause numerous financial losses, causing stress to the victim and huge economic losses to the nation. Stolen identities can also aid illegal immigrants who might pose security threats gain access into the country and hide from the police. Due to this reasons, citizens should be advised to take proper care of their personal information. In circumstances where the protecting personal information may be difficult, the government should come up with relevant policies to ensure that their citizens’ personal information is safe. This will prove to be very useful in mitigating the negative impacts that identity theft has on the economy.
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Key words: Defraud, Identity theft, Skimming, Phishing
References
Finklea, K. M. (2015). Identity Theft: Trending Issues. DIANE Publishing.
Jakobsson, M., & Myers, S. (2006). Identity Theft and Countermeasures: Understanding Increasing Problem of Electronic Identity Theft. John Wiley and Sons.
Lai, F., Li, D., & Hsien, C. (2012). Fighting Identity Theft: The Coping Perspective. Distributed Support Systems, 52(2), 353-363.
