Word of Advice

2 July 2007

How to avoid identity theft

Identity theft is big business overseas, and the problem is growing. Figures from the Australian government show that identity crime in Australia is estimated to cost over $1 billion a year.

Identity theft is part of the general term ‘identity fraud’ which is the theft and use of personal identifying information of an actual person.

It occurs when a fraudulent person assumes an identity through using stolen personal information or forged documents. The criminal may then go on to take over the victim’s bank account and open new loan and other credit agreements in the victim’s name.

Identity crime is also associated with scams which come from overseas. You should never give out personal information in relation to emails, phone calls and letters you receive offering goods or services that seem too good to be true. Only give out your personal details and information if you have initiated the contact and trust the other party.

If identity theft occurs, it can take a long time to repair the damage done to the victim’s ‘stolen’ name. Often, those affected will need to spend a large amount of time sorting out the situation with their banks and sometimes the credit rating of the individual may be affected, causing problems when applying for credit.

You should order a free copy of your credit report at least once a year to make sure no-one is using your name to borrow money or run up debts. You can get a copy of your credit report from a credit reporting agency. The two main credit reporting agencies in New Zealand are Veda Advantage and Dun and Bradstreet.

How can I protect myself?

• Keep your ID and credit cards to a minimum in your purse/wallet. That way if you lose it, any potential identity thief will have less information to work with.
• Check you bank and credit card statements carefully – any unauthorised spending may be the first sign that you are the target of identity theft.
• Exercise caution when you give out personal information – especially over the phone or internet.
• Treat your personal details like you would treat money and don’t leave them lying around for others to take.
• Keep old bank and credit card statements securely. When it is time to destroy them, shred the documents. Exercise caution with what you throw out, remembering that your rubbish could be a target for identity thieves.
• Keep all passwords and PIN numbers safe and don’t record or store them in a place which may be accessible by thieves – such as your purse or wallet.
• Notify your bank immediately if you lose any of your cards. If you lose your passport or driving licence, contact the relevant authority straight away.
• Secure your mailbox. Make sure you have a secure lockable mailbox and quickly remove your mail once it has been delivered.

If you believe that you have been a victim of identity theft, you should contact your local police straight away; contact details are available in the White Pages.