Identity theft

What is identity theft?

Identity theft is the stealing and use of your personal data. This may happen online, through email or phone scams, spyware on your computer or even just stolen mail. Criminals are usually trying to steal money directly or to set up fake accounts in someone else’s name.

A stolen identity can be used to:

apply for credit
access personal and/or financial details
open bank or utility accounts
open mobile phone accounts
access tax refunds
create fake ID such as driver’s licences, passports, Medicare cards
steal from bank accounts
demand payments
fraudulently claim government benefits

How do I know if I’m a victim of ID theft?

Here are some clues that have alerted other people that their ID has been stolen:

you get an unexpected letter from a bank or the ATO
you’re denied straightforward credit such as a store card or credit card limit increase
you get emails from legitimate businesses about a purchase you never made
your bank flags a suspicious credit card transaction
you start getting calls from collections agencies for credit you know nothing about
you stop receiving emails or paper statements for credit cards or bank accounts
new licences, credit cards etc stop coming
unusual transactions appear on statements or bills are suddenly a lot higher than normal
there are unusual enquiries or changes to your credit report

Protect yourself against ID fraud

You can help protect yourself against ID theft by following a few simple tips:

Get your credit report from each of the credit reporting bodies, available for free every three months, to check for any suspicious credit application as it could be an indication that a fraudster applied for credit using your information
Lock your mailbox and make sure it is emptied regularly
Avoid using obvious or the same passwords and PINs
If an email sounds odd, it probably is. Be especially careful about opening any attachments or clicking on any links
Never give out personal details over the phone unless you are absolutely certain that you trust the caller. If you aren’t sure, arrange to call the business back on a number that you’ve separately verified
Take note if a shop or service wants to take a photocopy of your driver’s licence or passport
Never give personal or financial details to people you don’t know
Be careful about what information you post on social media – particularly in photos
Where possible, use two- or three-step authentication online

Actions – reporting identity theft

Work out what type of identity document has been stolen and what it could affect, and remember that a fraudulent driver’s licence for example, can not only attract fines and demerit points but can also be used to open bank accounts etc. Contact all businesses and organisations you think may be affected and change relevant passwords and PINs.

Get your credit report from each of the three main credit reporting bodies in Australia. These reports will help you determine if someone has tried to fraudulently open a credit account (usually with a bank or a service provider) in your name.

As soon as you have a firm indication there is a problem, notify the police. Many organisations will require a police report before they can rectify the situation and cancel any credit that’s been opened in your name.

If you are not sure whether your ID has been stolen, you can call the free IDCare line on 1800 595 160

So how does it happen?

Identity thieves are incredibly smart and innovative. Theft can involve actually stealing (or fraudulently copying) things that identify you such as a driver’s licence, credit card, bank statement, tax return, salary slip, Medicare details etc.

Your identity can be stolen online through fraudulent emails, fake websites that ask for your details, spyware in your computer, unsecured wifi and internet connections, and online scams. Theft also happens via scam phone calls that can sound very genuine – often they’ll even refer to you by name and, like scam emails, often seem to come from legitimate businesses you deal with.

What if I think someone is impersonating me? How do I protect myself against ‘identity theft’

Identity theft is when someone pretends to be you in order to fraudulently borrow money from a lender or buy something on credit from a business. It often happens when someone steals your personal information. This could happen through someone stealing your mail from your letterbox or if you’re pickpocketed (especially if your passport is taken while you’re on holiday!). It could also happen if your personal information is stolen electronically (e.g. by ‘phishing’ or if you put too much personal information on your Facebook profile).
It can be a total pain if it happens to you. Often, the first indication that something is wrong is when you apply for a loan and get refused because there’s a default listed on the loan taken out by the fraudster.
However, there are things that you can do to limit the pain.
Firstly, talk to your local police station as they’ll want to take a report of the crime. Make sure you get a copy of the police report as it will help you deal with any credit providers that think they loaned money to you.
Secondly, contact each of the credit reporting bodies and ask for a ‘ban’ to be put on your credit report. This is free to do and means that any credit provider that tries to get a copy of your credit report (e.g. because the fraudster has applied for credit in your name) will be told that a ban is in place. This will signal to the lender that they shouldn’t approve the loan. The ban will stay on your report for 21 days, but can be extended by you.
If you (i.e. the real you) make an application while the ban is on your report, the credit provider can access your credit report with express written permission from you (although check with your credit provider to see what they do in these circumstances as some credit providers may prefer to wait until the ban is over before assessing your application).