Is your identity safe?Forensic Focus - December 2008 |
This year we have seen a dramatic increase in “identity crime” in New Zealand. This illegal activity, largely driven by a desire to make a financial gain, has emerged in two distinct forms: identity fraud and identity theft.
Identity Fraud involves the creation of a new, false identity. An example would be the multiple benefit fraudster Wayne Patterson (convicted for defrauding the Ministry of Social Development) who created a suite of 123 fictional identities to claim $3.4 million in benefit payments over three years.
Identity Theft is more common and more pervasive. This is when someone steals the identity of a real person and uses it as if it were their own. A stolen identity is often used by the thief to obtain credit (e.g. personal loans of up to $10,000) or to buy goods (e.g. second-hand cars, whiteware, electronics). The victim is left to deal with the sense of intrusion, as well as
potential liability for the thief’s actions and a damaged credit history.
So far this year, the Deloitte Forensics team has investigated losses in both areas of identity crime, with the amounts involved ranging from $20,000 to $1m.
In our experience, we have not seen the modus operandi change much: identity theft victims often know the person who uses their identity. The person might be a work colleague, friend, sports club member, teammate or a Facebook/Bebo “friend”.
Fraudsters may go to some lengths to match the victim’s characteristics of gender, age or ethnicity to themselves, in the rare event that an institution calls to check.
There are several steps that can be taken to make it hard for identity thieves – securing and monitoring your own information is very important.
How can you prevent your identity been stolen?
By taking some simple steps you can make it harder for your identity to be stolen, we suggest:
- Take some time to destroy or shred bank statements, credit card bills, letters – especially those from your insurance/bank provider inviting you to accept preapproved extra cover – invest in a home shredder
- Be cautious about who you give your personal information to (i.e. pet’s name), particularly over the phone – reputable businesses will never ask you for this sort of personal information
- Take steps to protect your computer (firewalls/virus protection), especially if you are a member of online networking sites such as Facebook or Bebo.
What about your business?
Businesses can also be potential victims. Here are a couple of ideas to secure your staff and your data:
- Check the personal data you hold on file about your clients and staff – if you need to retain it, then ensure it is well-protected. Destroy obsolete or old information safely and securely
- Check out the identities of your staff and customers but once you have finished with the information, either return it or safely destroy it
- If a staff member becomes a victim, getting specialised assistance early will help them – the consequences for individuals may take a financial toll, but the emotional fallout is often more significant.
For more information please contact:
Barry Jordan
Partner, Forensics and Recovery
Other related articles:
Planning a fraud investigation
All is fair in love and war - relationship property disputes
Data in the wrong hands
Anti-money laundering - countering the financing of terrorism
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