Identity Theft

Beginner

Identity theft is the use of someone else's personal information, such as their name, identity number or bank details, without permission, usually to commit fraud or obtain money, credit or services.

Criminals obtain personal information through data breaches, phishing emails, stolen post, fake websites or by buying stolen details online. They then use the information to impersonate the victim.

With stolen details, a fraudster might open credit cards or loans in the victim's name, access their bank accounts, file false tax returns to claim refunds, make purchases or take out phone contracts. Victims may not notice until they find unfamiliar transactions, receive bills for accounts they never opened or are refused credit because of debts they did not take on.

For example, someone might discover that a loan of 8,000 was taken out in their name after their details were stolen in a data breach, damaging their credit score.

Ways to reduce the risk include using strong, unique passwords, enabling two-factor authentication, shredding documents with personal details, being wary of unexpected requests for information, checking bank statements and credit reports regularly and, where available, placing a credit freeze. Acting quickly by contacting banks, credit bureaus and the authorities helps limit the damage.

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