What is identity theft?

Identity theft, also known as identity fraud, is a crime that is done frequently today. Identity threat is the use of another person's identity to undertake a practice for one's own gain.
By obtaining personal information, such as the transactional information needed to complete transactions with another individual, this theft is conducted in many different ways.
Identity thieves typically seek to make money financially or in other ways by using their victims. Therefore, the identification of the victim is typically not the theft's primary objective. Criminals are hoping to earn something else by using it as a tool. Identity theft can, however, also be used to harm the victim's reputation...

Let’s take you to the real fact of identity theft with an example!

Thieves use a variety of methods to steal credit card information and once they have it, they can quickly lower the victim's credit card rating.
If you aren't warned sooner, sharing this information with the hackers could result in serious consequences for you. They can get a credit card in the victim's name using these fake credentials, which they can then use to pay off false bills. 

Although identity theft can take many different forms, the most common one is financial.

A growing sector called identity theft prevention monitors people's credit records, financial transactions, and use of Social Security numbers. Let’s see the different types of identity theft.
  1. Financial identity theft - Financial identity theft occurs when someone uses the identity or information of another person to obtain credit, goods, services, or benefits. This is the most common type of identity theft. 

  2. Online identity theft - Digital identity theft includes a malicious performer who illegally obtains personal information (date of birth, social security number, credit card information, etc.) and uses it for identity fraud (cloning credit cards, applying for loans, extorting the victim etc.)

  3. Tax identity theft - Tax identity theft occurs when someone uses your Social Security number to obtain a tax refund or to obtain employment. When people file their tax returns, they frequently discover tax identity theft.

Anyone can be a victim of identity theft

Many people believe they have nothing to steal or that no one would want to steal their identity. They may believe they do not have enough money, that they are too old, or that they are otherwise an uninteresting target. They believe that "stealing their identity is not worth it." Unfortunately, this is not the case. Especially when you consider that the criminals are not after their identity.
Practically everyone can apply for credit cards and loans. including young children and the elderly. Online hackers are aggressive and frequently target people they believe to be simple targets. Moreover, the victim's status does not prevent identity theft. In comparison to victims who are more financially secure, those with lesser incomes may find it more difficult to recover from the potential expenses of identity theft.

The damage caused by online identity theft can be severe and long-lasting!

Criminals use stolen information as quickly and as widely as they can to maximize their profit. They can cause huge damage to victims before changing passwords, freezing credit cards, or taking any other preventive actions. While the criminals walk away with the money and goods, the identity theft victim is left with all of the expenses.
The victim frequently isn't even aware that their identity has been stolen until they start receiving invoices or start getting contacted by creditors or the police. In addition to all the financial harm and costs, it can be a big shock and result in long-lasting personal problems. Not to mention the time and energy it may require to resolve the issue.
Investigating and repairing the effects of identity theft can take a huge amount of time and effort. Unfortunately, the victim is left to complete the task. The procedure can also cause a great deal of emotional trauma. You can, however, protect your personal information online. 
While no method is perfect, here are few ways to protect yourself from online identity theft:
  1. Set your email addresses for monitoring - Your email address is frequently linked to crucial personal data. Sensitive personal data may fall into the hands of hackers when an online service you use is hacked. You have a greater possibility of having been exposed to identity theft if your data has been stolen.

  2. Use strong and unique passwords - Almost every system that requires logging in, uses passwords. Passwords protect all of your personal information in online accounts. That is why password security is important. Passwords are typically stolen by criminals through security breaches, phishing scams, malware, and intercepting your web traffic.

  3. Be careful when opening links and attachments - Be careful when clicking on any suspicious links and attachments, especially on emails. Not only can they lead to phishing sites, they can also include malware. Make sure to check the sender and the URL of the page before feeding in your info.

  4. Use a VPN on public networks - You can never know if a public Wi-Fi network is safe. Your usernames, passwords, messages and bank information can be intercepted by malicious actors on the same public network. A VPN encrypts your web traffic so that it can’t be intercepted by outsiders.That way you can use WiFi networks without having to worry about your data being intercepted by criminals. Always use a VPN when you are connecting to public WiFi networks.


Importance of Cyber Insurance in case you are a victim of Identity Theft

There are many ways to steal your personal information. If it gets into the wrong hands, it can be used for identity theft. The consequences can be very serious, and it can take a very long time to fix the situation. Unfortunately, identity theft is not going anywhere. It has only increased and most likely it will continue to do so.
However, you can always protect your hard-earned money, in such unfortunate scenarios, by purchasing Cyber Insurance for yourself and your family.
Cyber Insurance, not only compensates you for your financial loss but also pays for the legal costs, credit monitoring services, as well as psychological assistance, if needed.
In a time when working remotely is the new normal, and everyone has easy access to our social media profiles, apart from implementing robust cyber security measures, it is equally important to have cyber insurance, should those measures fail.
Click here to know more about how Cyber Insurance can help!


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