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What is Identity Takeover?

Identity takeover, also known as identity theft, is a type of cybercrime where criminals steal and misuse personal information, such as financial details or government-issued identity documents, to impersonate their victims online. This form of fraud can result in financial losses, harm to the victim’s reputation, and compromised personal security.

Understanding Identity Theft: Methods and Techniques

Phishing 

Cybercriminals utilise advanced phishing techniques to lure victims into disclosing personal information, such as passwords or bank account information and card details. By posing as legitimate entities, these bad actors make attempts to retrieve this information through methods such as email, social media, phone calls, or text messages. For more information, check out the Scamwatch Phishing page.

Example: A victim receives an email that appears as their bank, requesting them to update account information through a link provided. This link leads them to a spoofed website that mimics the bank’s official site, where they unknowingly enter their login details, which the perpetrators then steal.

Data Breaches 

Hackers exploit vulnerabilities in security systems to illegally gain access to databases containing personal data. By having access to this type of data, bad actors can misuse a victim’s personal information for identity theft purposes or sell this information on the dark web. For more detailed information on how to avoid scams after a data breach, refer to the Scamwatch fact sheet.  

Example: A large corporation experiences a breach in their security system by hackers, exposing sensitive customer data, including names, addresses, banking information and identity documents. The hackers have threatened to release the data on the darkweb unless a ransom is paid.

Social Engineering 

Cyber criminals may utilise manipulative tactics to trick their victims into sharing sensitive information or performing actions that lead to security compromises. They rely on building trust with their victims through deceptive tactics that lead to fear or excitement. With the advancements in technology, such as deep fakes, perpetrators may use sophisticated technology to fabricate audio or video recordings, further complicating the threat of identity compromise. 

Example: A cyber attacker posing as a representative from a well-known tech company contacts a victim, claiming to have identified malware on their device. The victim is persuaded into giving this perpetrator remote access to their device, unknowingly granting a scammer control over their personal data.

How could this impact me?  

The impact of identity theft is multifaceted and can affect various aspects of a victim’s life, ranging from financial stability to emotional well-being and personal relationships. For example:

  • Unauthorised transactions, fraudulent charges, and drained bank accounts can result in significant financial losses. 
  • Identity takeover can result in unpaid debts and defaults on loans, damaging your credit score and making it difficult to secure loans, mortgages, or lines of credit in the future, consequently affecting your tax and credit history. 
  • Discovering that your personal information has been exploited can cause emotional distress, including feelings of violation, anxiety, and mistrust. 
  • Identity theft can tarnish your reputation, particularly if the bad actor engages in criminal activities using your identity.  
  • Even after resolving the immediate issues, victims of identity theft may remain at risk of further exploitation, requiring ongoing vigilance and monitoring of financial accounts and credit reports. 

How do I protect my digital identity? 

  • Be wary when sharing personal information online and query any unusual requests for sensitive details, especially from unfamiliar sources and unsolicited contact. 
  • Utilise strong authentication measures such as unique passwords and multi-factor authentication to fortify the security of online accounts. For more detailed information, please refer to our Creating a Secure Password Learn article. Do not provide any third parties with any passwords or security controls such as two-factor authentication codes.   
  • Monitor financial statements for any suspicious activity, promptly reporting any discrepancies to relevant authorities. 
  • Keep software and security systems up to date and employ reputable antivirus software to mitigate the risk of malware infections. 
  • Refrain from granting remote access of your device to third parties as this can expose your system and personal information to potential threats. 

What do I do if my identity has been compromised? 

If you believe you’ve been the victim of identity theft, report it to Report Cyber.  

Find out more about identity theft and how to protect yourself from it at IDCARE: 

  • IDCARE provides free, confidential support and guidance to those impacted by fraud, scams, identity theft or compromise.  
  • Call them toll-free on 1800 595 160 or visit idcare.org 

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