Identity Theft in a Sluggish Economy

So what is the reason for the spike in identity theft and data breaches in 2008? We can offer any number of reasons. After all, ID theft has been on the rise for years, but it seems like every time we turn around we're hearing about a major data breach or identity theft case (like the TJX case back in August). Part of the reason is the obvious fact that ID theft is getting easier to commit as technology advances, and we need to make sure our security measures are equal to the task of protecting private data. Certain agencies posting private consumer data on the Internet doesn't help either.

But what is motivating people to do this? A press release by MyPrivateCredit has offered at least one possible indirect cause. The sluggish U.S. economy of 2008 may be at least part of the cause of the rise in identity theft and data theft. When economic conditions decline with people either out of work or the paycheck not going as far, many will seek additional sources of income. And not all of these income sources will be legal. Identity theft might seem like an easy answer for those who are capable of pulling it off. After all, ID theft is profitable. Even if someone isn't actually using the data they steal, they can sell it to those who will.

While this press release definitely offers some interesting points, it by no means tells the whole story. Yes, the sluggish economy may inspire some to turn to fraudulent income streams, but that doesn't explain why identity theft has been steadily on the rise even when the economy was not in such a sad state. As identity theft becomes easier, we need to become more cautious about protecting our private data, and companies need to increase their security as well, including the human element.

Read over the link I provided above. After all, it does raise some interesting points, and by all means, protect your identifying data, especially if the temptation some to commit identity theft is looming larger than usual.

Honesty Online Can Increase Identity Theft Risk

I'm sure you've heard it before, even from me, "Be careful what you divulge online." Whether you're conversing on a niche forum, frequenting your favorite chat room, writing personal blog posts, or maintaining your MySpace page, you need to be careful how honest you are with your personal information. Even sharing your birth date, which seems fairly innocent, can come back to haunt you if the information falls into the wrong hands. Remember that fraudsters don't need much information to make you an identity theft victim. Why make ID theft any easier than it already is?

Yes, you've heard all of this before I'm sure. However, what about your online banking security? Obviously, you don't want to have a password that is easy to guess, but you also have your bank's security questions to answer in case you forget your password. Do you answer those questions honestly? It might help if the bank's security questions couldn't be answered by information that is public record or easily guessed, but they do want you to be able to answer them if you forget your password. However, this PC World blog points out just how easy it can be to access someone else's online banking information. Your father's middle name and the city where you were born can be found fairly easily by anyone willing to do a bit of footwork. So you may not want to answer those questions honestly. It may come back to bite you in the form of identity theft. You may not want to give your pet's name when asked for it. You may not want to supply a "name" at all, or if you do, include some numbers or other characters in the mix. If your cat's name is Fred, don't simply type in "Fred." Try something like "2f7r1e!d&" or something more complex than simply a name. Yeah, it's obnoxious but you get the point.

There are times when you have to be honest online (like with online purchases, that is if you actually want to receive what you are ordering), but other times your honesty can hurt you. You can avoid being an identity theft victim by knowing what to hide and what to tell.

Wardriving and Identity Theft

Thanks to the recent high-profile identity theft case, attention has been called to the technique that was used, which is called wardriving. Wardriving involves driving around searching for insecure wireless networks. This can relate to home wireless connections or, like in the current identity theft case, business connections. Gaining access to a wireless network is easy if the security is low. If you've used a neighbor's wireless connection from a laptop without permission, then you've done it yourself.

With wireless networks for businesses becoming more common, wireless security should be something also be a concern. This isn't just about surfing the web on someone else's connection. The hackers involved in the current identity theft case were able to access the credit card information of millions of consumers, so obviously wardriving in the hands of a cyber criminal is much more serious than just taking advantage of free Internet service.

While you obviously have no control over the security of the businesses you frequent, you can control your own actions. If you are surfing the web from an open or low-security wireless network, don't use this particular surfing time to log on to your online bank account or make an online purchase.

Most Bank Websites Do Not Protect You from Identity Theft

Don't you love the convenience of banking on the Web? I know I do. And when I signed up, my bank's manager was raving about how secure it was. However, a recent study at the University of Michigan made me more than a little concerned.

According to the study, more than three quarters of all bank Websites have design flaws that can expose users to identity theft. Some of the flaws include login boxes or security and contact information placed on insecure pages, allowing insecure IDs and passwords, and emailing sensitive information insecurely as well as others.

Some of the issues have been addressed since their discovery, but there is still a lot of work to be done. The problems become an issue only if you are logging in from an insecure network. So one major way to protect yourself from identity theft is to log in only from your home computer with a secure cable or DSL connection, not at a coffee shop with an open wireless connection.

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