Identity thefts have now become a lot easier. What's more, almost everyone is now a potential target.
An identity theft occurs when someone obtains your personal information, such as your credit card data, PAN, bank account details, address, or other such information to take on your identity.
This information is then used for taking loans on your name (which they don't intend on paying back) to applying for jobs, driving license, phone connection to starting social networking pages on your behalf – just about anything.
Such ID thefts can be disastrous, and can leave you licking your bruises from loss in reputation, credit ratings and finances.
India not insulated
While identity thefts have for long been more prevalent in the developed countries, it is slowly making its presence felt in India too.
According to Norton Cybercrime Report 2011, India is fast emerging as a soft target for organised cybercrime, with four in five online adults having been victims of identity thefts last year alone.
“Indians are also more prone to phishing attacks. And this is not due to a rising internet population but due to lack of awareness,” says Ian Craig, Managing Director CPP India. That India is among the world's top 15 countries hosting phishing sites that steal confidential information such as passwords and credit card details may help put the lurking danger in perspective.
KYC strong, but not enough
But how can anyone possibly take a loan on your name, especially since know-your-customer (KYC) norms are so stringent? Well, here's a piece of news. According to a recent KPMG survey on anti-money laundering, seven out of ten firms do not regularly update the KYC details of their customers.
While regulations require firms to update the data once in two years for every high- and medium-risk customer and once in five years for low-risk customers, only 52 per cent of the firms took the trouble of identifying the beneficial owner who did transact or on whose behalf a transaction was executed, revealed the survey.
The report also highlighted the rise in the number of cases in which fraudulent documents were being used for opening accounts.
Offline at risk too
I don't transact online. I am not at risk – if you are saying that to yourself, know that you too are equally at risk.
Contrary to popular belief, the primary cause for ID thefts is not an increase in online presence - they aren't limited to online transactions or online banking.
It is caused by people not paying attention to the contents of sensitive information that they receive, online as well as offline, explains Ian Craig.
These could be your bank statements, telephone bills, credit card statement and other such sensitive correspondences that come in the post box as well as the email inbox. If left unsecured, it could also make you a victim.
Protection and potential red flags
Do not disclose personal details online or on social networks.
Avoid responding to suspicious mails that ask for your personal details and never disclose your bank, credit/debit card details and PIN numbers to anybody online or offline.
Keep tabs on your credit card and/or bank statements to ensure that suspicious transactions are detected. Shred all such important documents and ensure you are using updated antivirus software.
But how would you know if your ID has been stolen?
Here are some possible indicators. Look for unexplained entries (unfamiliar purchases) in your credit card statement, or debits of small amounts in you bank accounts.
Receiving a statement or bill for a service that you don't have, or an unexpected verification call from a bank should also raise red flags.
And as soon as you discover any such malpractice, immediately lodge a police complaint and get in touch with the concerned bank.