Identity Theft

Karan Khanna
 Karan Khanna

Table of Contents

1. Executive Summary

2. Introduction

3. Ethical Issues

4. Security Issues

5. Privacy Issues

6. Summary

7. Recommendations

8. Further Reading List

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1. Executive Summary

This report aims to identify and suggest measures to tackle the increasing menace of

identity theft. Following your perusal hereof, you will have an idea about the ethical, security

and privacy issues surrounding the monster of identity theft. In addition, this report also

intends to suggest measures for preserving data security.

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2. IDENTITY THEFT

Identity theft can be defined as a crime in which an impostor steals key personal

information, such as Social Security number, to impersonate someone. In addition to using the

stolen information to get loans, products and services in the victim’s name, it can also be used to

provide the police with falsified records, which might eventually serve as the foundation of a

fake criminal record.

Identity theft can be broadly categorized into the following two categories:

 True name identity theft: It refers to the theft of personal information to open new

accounts. This may include the opening of a new credit card account or the setting up of a

new cell phone service, among others.

 Account-takeover identity theft: This includes the use of personal information to gain

access to the victim’s existing accounts. Normally, the thief changes the mailing address

of the aggrieved party and runs up an astronomical bill before the victim can sense what

he/she is up against.

Identity crimes have been a serious issue in Australia, with recent surveys suggesting that

about 4-5% of Australians experience a financial loss every year on account of the cases of

identity theft.

A survey conducted in 2016 by the Australian Institute of Criminology (AIC) threw up an

astonishing figure – 8.5% of the respondents had experienced some form of misuse of their

personal information in the last 12 months. 4.9% of all respondents had even suffered from out-

of-pocket expenses due to the same.

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The biggest breeding grounds for identity theft are online media, including email, social

media, scam surveys, and data breaches. One alarming fact is that many victims are not even

aware of how their personal information was accessed and stolen.

However, even more worrying is the fact that there were only 1,279 prosecutions against

the 1.6 million identified victims of identity theft in all Commonwealth countries. With law

posing little threat to the ever-sophisticated thieves, there is little deterrent to prevent them from

accessing a normal man’s bank account or credit card information.

3. ETHICAL ISSUES

Besides the financial and monetary losses it entails, identity theft comes with its fair

share of ethical concerns too. From being accused and convicted of a crime that you did not

commit to cat-fishing, which involves the creation of a fake online identity to engage the victim

in a fantasy. The latter is especially common on social and dating sites. According to an ABS

survey back in 2014-15, about 4.5% of the respondents had been conned on social media.

However, more alarming is the fact that over one-third of the respondents (35.4%) were

reported to have been victims of ‘other’ cases of identity theft. These included lost items or

documents, whilst using credit card to purchase goods or withdraw money, text messages and

other. In 20% of the cases, personal information was accessed by hacking the computer device,

or theft. Email accounts for about 18% of the total unauthorized accesses.

Another aspect of impersonation and fraud is the use of malicious spyware and viruses,

which not only allow unauthorized access to the victim’s personal information, but also damage

his/her computer, thereby violating his right to personal property protection.

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Identity theft directly affects our right to own our persona. It also poses the moral

question of whether one can take something that is not theirs.

4. SECURITY ISSUES

Data theft raises some serious security questions. Consider the following survey data

collected by the Pew Research Center:

 21% of the Internet users have had an email or social networking account compromised

or taken over without their permission.

 12% people have faced online stalking or harassment.

 11% people have had to put up with the theft of critical personal information such as their

Social Security Number, credit card, or bank account information being stolen.

 6% have had their reputation damaged because of something that happened online.

 6% have fallen victims to an online scam involving money.

 4% have had to face physical danger due to something that happened online.

 1% people claimed to have lost a job opportunity because of something they posted

online, or something that was posted about them.

However, a much more serious security breach took place in 2014-15, when the

Australian Customs and Border Protection Service (ACBPS), now the Australian Border Force,

recorded 68 incidents of fraud concerning false declaration. On such incident involved the import

of ‘Tier 2’ prohibited goods, which were detected in the form of blank credit cards, which could

have come in handy for forging a fraudulent identity. 12 of the 50 fraud incidents involving

aviation and maritime security identity cards in 2014-15 were recorded as identity crimes.

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The gravity of the matter can be further illustrated by the fact that the Department of

Foreign Affairs and Trade (DFAT) began 151 investigations during 2014-15 to look into

allegations of passport fraud, including identity fraud.

It is evident that the existing legal and enforcement framework needs to be strengthened

if such serious security concerns are to be addressed.

5. PRIVACY ISSUES

This aspect of identity theft is dependent as much on the perpetrators of such acts as on

the people who tend to over-share their personal information on social networking sites. It is

common to come across people – most, if not all, of whom are from the current generation – to

update every teeny bit of their private lives on the social media. With the line between friends

and acquaintances getting blurred and even becoming non-existent (especially with people

having 1000 or more “friends” on their social networking accounts), we are more prone than ever

to having our privacy encroached upon.

However, there is more to it than meets the eye. With the right data, thieves are more than

likely to open up credit accounts in the victim’s name and run large bills, which can act as a

guarantee for years of financial burden for the person whose privacy had been violated. How

adversely a financial blot on your credit history can affect your chances of getting a student loan

or renting an apartment is no rocket science. In addition, share too much of your private

information and you are running the risk for traditional theft (read home robbery).

Our lack of privacy concern can come back to haunt us in the future as almost all the

information on the Internet is archived and may remain searchable for years. Your personal

information shared several years ago, which you might not even be aware of now, can prove to

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be potent weapon in the hands of sharks looking to devour any small piece of personal data they

can pounce on.

It is, therefore, of paramount importance for us to be aware of our own privacy. The key

is to avoid giving people on social sites too much of an insight into your private life and

refraining from sharing excessive personal information.

6. SUMMARY

In view of the increasing digitization of the 21st century world, it is inevitable for us to

jump on to the bandwagon of online means of payment and social networking sites. From

robbing your credit card information to falsely alleging you of a crime to forging a passport, the

monster of identity theft has spread its tentacles far and wide, and if anything, their outreach is

only going to expand in the near future as the nefarious machinations of hackers and thieves

transcend physical and technological borders.

With such incidents becoming the order of the day in all corners of the world, we are

obliged to take measures to protect our confidential information. This involves both the

preventive measures to avoid such thefts and corrective measures that must be resorted to if we

fall prey to identity theft.

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7. RECOMMENDATIONS

While there is no foolproof solution to avoid identity theft, by taking some preventive

measures, we can ensure that we won’t be outsmarted easily by online tricksters. For instance,

you can secure your social security number by not carrying your social security card in your

wallet or not writing your number on your checks. Not responding to unsolicited requests for

personal information by phone, mail, or online can also go a long way in reducing your chances

of being conned. For businessmen and sole proprietors, the importance of paying attention to

their billing cycles cannot be stressed enough. They must immediately contact the sender should

the bills or financial statements be delayed. For individuals with credit cards, reviewing their

credit and bank account statements can be a simple but effective way of identifying and tackling

unauthorized transactions, if any. Installing firewalls and antivirus software in your personal or

work computer is one of the most efficient ways to reduce the threat of impersonation and

unauthorized access to your valuable information. Lastly, creating complex passwords, which

should be duly changed at periodic intervals, ensures that the thieves will have a hard time

hacking your personal accounts.

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8. FURTHER READING LIST

(1) http://searchsecurity.techtarget.com/definition/identity-theft

(2) https://www.ag.gov.au/RightsAndProtections/IdentitySecurity/Documents/Identity-

crime-and-misuse-in-Australia-2016.pdf

(3) https://vhxtan.wordpress.com/2016/11/11/ethical-issues-raised-by-social-media-identity-

theft/

(4) http://www.pewinternet.org/2013/09/05/part-5-online-identity-theft-security-issues-and-

reputational-damage/

(5) http://www.cascadementalhealth.org/poc/view_doc.php?type=doc&id=37588&cn=66

(6) https://www.usa.gov/identity-theft

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