Identity theft is when someone uses your personal data — your name, Aadhar card number, birthdate, etc. — to impersonate you, typically using that information to steal from you.
It is the most common method of theft with a recent cybercrime awareness report stating that one in every three people in India has faced identity theft at some point.
Identity theft can occur in many ways – from physically stealing documents to hacking digital devices or even using a fake identity to steal someone else’s identity.
In fact, more than 75% of all financial fraud cases in the country are identity theft examples and thousands of more people become innocent victims of these scams every year.
One such example of financial fraud is the case of Sumit Khanna, whose identity proofs were tampered with by photoshopping another person’s photograph and were used to illegally take loans worth Rs 4 lakh. When Sumit received a call from the loan department of ICICI Bank regarding a two-wheeler loan, he informed the bank official that he never availed this loan. Upon visiting the branch, he checked the CCTV footage and got to know someone has misused his identity proofs and availed the loan in his name. Upon checking his CIBIL score and loan history he got to know that not just one, rather six such loans had been illegally availed of in his name from 3 banks and 3 finance companies. The police finally discovered that Sumit had sent his Aadhaar and PAN card pictures on WhatsApp to his colleague’s friend for job purposes, who further forwarded it to someone in his contact.
Click here for an example on use of a Fake IF to avail a loan from ICICI Bank
Most netizens in India are worried about identity theft. According to the 2020 Unisys Security Index it emerged as the top security concern with 83% considering it as one of the biggest threats while online. To learn more about Risk in the Digital Economy, visit our website
9 Strategies to Prevent Identity Theft
1. Use strong passwords and add an authentication step
Use a password manager to create and store complex, unique passwords for your accounts. Don’t reuse passwords and use a two-step verification process for social media platforms. Adding an authenticator app can reduce your risk. Example: Authy, Microsoft Authenticator, Google Authenticator, etc.
2. Use alerts
Many financial institutions will text or email when transactions are made on your accounts. Sign up so that you know when and where your credit cards are used, when there are withdrawals or deposits to financial accounts.
3. Shred sensitive documents
Any credit card, bank or investment statements that someone could fish out of your garbage shouldn’t be there in the first place. Shred junk mail, too, especially preapproved offers of credit.
4. Disposing your old credit card:
Cut your previous credit card into pieces and most importantly, remember to cut the part where the magnetic strip and CVV are mentioned to ensure your security.
5. Use a digital wallet
If you’re paying online or in a store, use a digital wallet, an app containing secure, digital versions of credit and debit cards. Transactions are tokenized and encrypted, which makes them safer. Example: PhonePE, GPay, Paytm, DigiLocker, etc. To learn more about safely navigating through today’s digital economy, visit our website
6. Protect your mobile devices
Mobile phones can be a real risk. Use passwords on your electronic devices. Use a banking app rather than a mobile browser for banking.
7. Be alert to phishing and spoofing
Scammers who make phone calls appear to come from government entities or businesses, and emails that appear to be legitimate may be attempts to steal your information. Block these numbers on your phone and do not open emails coming from suspicious names.
Example :
8. Using public Wi-Fi
Hackers may be able to see what you are doing when you use free public Wi-Fi. Don’t use public Wi-Fi for shopping, banking or other sensitive transactions.
Procedure to report a credit card theft :
Call up your card issuer as soon as you notice any fraudulent activity on your card. Follow up with a written letter, and fill out a fraud affidavit about your case. Contact your local police and report credit card fraud. Hold onto a copy of the police report, and use the case number on file if you want to follow up with your case.Cyber crime helpline is 1930.
You can also file a complaint on https://cybercrime.gov.in/
What happens when you report identity theft?
Reporting identity theft starts an investigation and the process of restoring your good name. The exact steps will depend on the type of identity theft. Credit card issuers generally replace the cards with new ones with a different number, and you are back in business. Taxpayer identity theft or theft of benefits typically are resolved more slowly. No matter which type of identity theft you experience, keep extensive notes about phone conversations and retain related emails.
These were some of the ways you can manage your money as a student. For more blogs like these, check on our website. You should also check out our blog on “ Crypto Frauds ”
Summary for the Blog:
- Identity theft is when someone uses your personal data to impersonate and steal from you.
- It can occur in many ways – from physically stealing documents to hacking digital devices or even using a fake identity to steal someone else’s identity.
- To protect your data, use unique passwords for your accounts and a two-step verification process for social media platforms.
- Use a banking app rather than a mobile browser for banking.
- Be alert of phishing and spoofing and block these numbers on your phone.
- Call up your card issuer as soon as you notice any fraudulent activity on your card.