IDENTITY THEFT AND CREDIT CARD FRAUD
Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully
obtains and uses another person's personal data in some way that involves fraud or deception, typically for
economic gain.
All over the world, societies are increasingly reliant on identification information. Identity-related information
about individuals is used e.g. for banking, shopping, travelling and collecting social assistance.
The more our society becomes computerized, the more avenues are open for criminals to exploit the
vulnerabilities of those systems to commit identity-related crimes. Identity-related crime generates significant
profits for criminals each year, with far-reaching impact not only on economies and online commerce, but also
on individuals who fall victim to it.
Identity (ID) theft is a crime where a thief steals your personal information, such as your full name or social
security number, to commit fraud. The identity thief can use your information to fraudulently apply for credit, file
taxes, or get medical services. These acts can damage your credit status, and cost you time and money to
restore your good name. You may not know that you are the victim of ID theft until you experience a financial
consequence (mystery bills, credit collections, denied loans) down the road from actions that the thief has
taken with your stolen identity.
Several Common Types Of Identity Theft
Child ID theft - Children's IDs are vulnerable because the theft may go undetected for many years. By the
time they are adults, the damage has already been done to their identities.
Tax ID theft - A thief uses your social security number to falsely file tax returns with the Internal Revenue
Service or state government.
Medical ID theft - This form of ID theft happens when someone steals your personal information, such as your
our Medicare ID or health insurance member number to get medical services, or to issue fraudulent billing to
your health insurance provider.
Senior ID theft - ID theft schemes that target seniors. Seniors are vulnerable to ID theft because they are in
more frequent contact with medical professionals who get their medical insurance information, or caregivers
and staff at long-term care facilities that have access to personal information or financial documents.
Social ID theft - A thief uses your name, photos, and other personal information to create a phony account on
a social media platform.
What are the Most Common Ways That Identity Theft or Fraud can happen to you?
> In public places, for example, criminals may engage in "shoulder surfing"- watching you from a nearby
location as you punch in your telephone calling card number or credit card number - or you listen in on your
conversation if you give your credit-card number over the telephone.
➤ If you receive applications for "pre-approved" credit cards in the mail, but discard them without tearing
up the enclosed materials, criminals may retrieve them and try to activate the cards for their use without your
knowledge. Also, if your mail is delivered to a place where others have ready access to it, criminals may simply
intercept and redirect your mail to another location.
➤ Many people respond to "spam"- unsolicited E-mail - that promises them some benefit but requests
identifying data, without realizing that in many cases, the requester has no intention of keeping his promise. In
some cases, criminals reportedly have used computer technology to steal large amounts of personal data.21
How Does Identity Theft Happen?
"The human imagination and creativity are endless when it comes to stealing things," says Peter Keane, dean
emeritus and professor at the Golden Gate University College of Law. In other words, while the following list
represents the most common means that criminals use to gain access to victims' personal information,
according to the FTC, it's certainly not exhaustive.
➤ Your Trash: Dumpster divers may be able to piece together enough information from old bills, financial
statements, etc. to get your name address account number bank name, etc. They can then use this information
to open new accounts in your name or even assume your identity entirely.
➤ Your Mail: By stealing your mail, criminals may be able to take advantage of a pre-approved credit card
offer, open account in your name, and go on a spending spree.
➤ Phishing: We've all received those e-mails from phony financial institutions asking that that you you provide
pro certain information for their records or from friends asking for help out of a financial pickle. That's phishing
in action. More specifically, cyber criminals try to deceive unsuspecting consumers into opening and/or
responding to e-mails designed to capture your personal information for fraudulent purposes.
➤ Skimming: Thieves are sometimes able to manipulate credit card processing machines and ATMs by
inserting a device that captures the account information of whoever uses it.
➤ Straightforward Theft: Less sophisticated criminals make take a smash-and-grab approach to identity theft,
stealing purses, pickpocketing people in crowded places, or even stealing personnel records from companies.
Conning: Anyone who has ever called a bank or retailer's customer service number knows that you must go
through certain steps to verify your identity before the person on the other end will discuss the particulars of
your account. Smooth-talking criminals can sometimes charm or explain their way around these safeguards
and get the company representative to provide them with the information needed to fill out financial account
applications, a change-of-address form, or the paperwork needed to get a replacement driver's license in your
name.
➤Address Manipulation: While you have to verify your identity when you change your address by providing a
valid credit card or debit card that the USPS will charge charge $1 to as a test, that's not an insurmountable
task for identity thieves who already have access to one of your credit cards or debit cards. They might
therefore be able to divert your mail and gain access to other aspects of your life.
Prevent Identity Theft
Take steps to protect yourself from identity theft:
Secure your social security number (SSN). Don't carry your social security card in your wallet or write your
number on your checks. Only give out your SSN when absolutely necessary.
Don't respond to unsolicited requests for personal information (your name, birthdate, social security
number, or bank account number) by phone, mail, or online.
Contact the three credit reporting agencies to request a freeze of your credit reports.
Collect mail promptly. Place a hold on your mail when you are away from home for several days.
Pay attention to your billing cycles. If bills or financial statements are late, contact the sender.
Enable the security features on mobile devices, especially if you have contacts, banking websites and
applications saved.
Update sharing and firewall settings when you're on a public wi-fi network. Consider using a virtual private
network, which can give you the privacy of secured private network.
Review your credit card and bank account statements. Promptly compare receipts with account
statements. Watch for unauthorized transactions.
Shred receipts, credit offers, account statements, and expired credit cards, to prevent "dumpster divers"
from getting your personal information.
Store personal information in a safely.
Install firewalls and virus-detection software on your home computer.
GLOBAL IMPACT OF IDENTITY THEFT AND CREDIT CARD FRAUD
Where identity-related information is obtained by criminals, it can be abused to launder money, to commit fraud
and to enable illicit activities for organized crime purposes, including acts of corruption, human trafficking,
migrant smuggling and even terrorism.
Millions of dollars can be stolen using false identification either in highly sophisticated single events, or through
millions of smaller incidents. In the hands of unscrupulous criminals, these criminal profits can be used to
commit further crimes.
On recent study of the Javelin Strategy & Research in California, USA, some 15.4 million consumers were
victims of identity theft or fraud in the U.S. in 2016. That is 16% up from 2015, and the highest figure recorded
since the firm began tracking fraud instances in 2004.
The Philippines, which is the sixth largest social network media user in the world, such as Facebook, is also
one of the many countries without law to protect its social network users from online identity theft. However,
criminals do not only occur in social networking sites, but in banking sites as well.
As cybercrime cases continue to rise with the upsurge in the number of internet users in the Philippines. The
Anti-Cybercrime Group of the Philippine National Police has recorded 55 cases of online schemes such as
swindling, libel, threat, video voyeurism, identity theft and hacking since 2016. Identity theft was ranked as the
3rd most common cybercrime complaint reported to the ACG.
At the last quarter of 2016, the Philippines have been dragged into a money laundering scandal involving the
$81 million funds of the Bangladesh bank stolen by hackers.
To help address the increasing cases of identity theft and credit card fraud in the country, the Banko Sentral ng
Pilipinas (BSP) have required banks operating in the country to beef up their authentication requirements
through "multifactor" authentication. This BSP's efforts will also help safeguard customer information, prevent
money laundering and terrorist financing.
As an antidote to the rapid growth of identity theft cases in the country, on September 2012, the Philippine
Congress have approves legislation to counter on-line identity theft through the enactment of Republic Act No.
10173 or the Data Privacy Act of 2012 with title, "An Act Protecting Individual Personal Information in
Information and Communications Systems in the Government and the Private Sector, Creating for this purpose
a National Privacy Commission, and for Other Purposes",
Legal Effort
Congress finally approved legislation to counter on-line identity theft through the enactment of Republic Act
No.10173 or the Data Privacy Act of 2012 which was approved by President Benigno C. Aquino III last August
15, 2012. The title of this act is "AN ACT PROTECTING INDIVIDUAL PERSONAL INFORMATION IN
INFORMATION AND COMMUNICATIONS SYSTEMS IN THE GOVERNMENT AND THE PRIVATE
SECTOR, CREATING FOR THIS PURPOSE A NATIONAL PRIVACY COMMISSION, AND FOR OTHER
PURPOSES". It is the policy of the State to protect the fundamental human right of privacy, of communication
while ensuring free flow of information to promote innovation and growth. The State recognizes the vita vital
role of information and communications technology in nation-building and its inherent obligation to ensure that
personal information in information and communications systems in the government and in the private sector
are secured and protected.
