Finder's analysis of data released by the Australian Institute of Criminology (AIC) has revealed that the cost of identity crime in Australia reached a staggering $3.1 billion in 2019, a substantial 17% increase from 2016.
Victims of the “New Accounts and Other Frauds” type of ID Theft estimated that they had spent almost $1,200 on average. Thus, the total annual cost of ID Theft to its victims appears to be about $5.0 billion, with victims of “New Accounts & Other Frauds” ID Theft bearing $3.8 billion of that total.
The most common forms of identity theft in Australia are financial identity theft, Medicare fraud, Superannuation fraud, tax fraud and child identity theft.
Identity theft is a growing problem in Australia and across the globe. Data breaches and cybercrime are on the increase, as the 2022 cyber-attacks, exposing the personal details of millions of Optus and Medibank customers have highlighted.
But if scammers gain access to your bank account number, they can use it for fraudulent ACH transfers or payments. For example, scammers could use your bank account details to buy products online. Or worse, they could trick you into sending them money that you'll never be able to get back.
If you're facing identity theft, know that it is possible to overcome the issue — but it may take some time. Just ask one of our identity specialists, like Vera Tolmachoff, Restoration Manager at Allstate Identity Protection. "It can take days, months, or even years to untangle identity theft," says Tolmachoff.
These are some signs to look out for: Unusual bills or charges that you don't recognise appear on your bank statement. Mail that you're expecting doesn't arrive. You get calls or texts about products and services you've never used.
Here are the most common dangers of identity theft: Fraudsters can open new accounts, credit cards, and loans in your name. You can lose your health care benefits (i.e., medical identity theft). Hackers can “own” your email and other accounts (account takeovers).
Warning signs of ID theft
Debt collection calls for accounts you did not open. Information on your credit report for accounts you did not open. Denials for loan applications. Mail stops coming to - or is missing from - your mailbox.
Even if a thief only accesses a small amount of your personal information, they may be able to steal your identity if they can find out more about you from public sources. This includes social media accounts which may include your date of birth, photos and information about your family.
Identity theft is a serious crime. It occurs when your personal information is stolen and used without your knowledge to commit fraud or other crimes. Identity theft can cost you time and money. It can destroy your credit and ruin your good name.
Why should I care if someone steals my identity? You will be responsible for what the thief does while using your personal information. You might have to pay for what the thief buys. This is true even if you do not know about the bills.
Fascinating Identity Theft Facts. Around 1 in 15 people become victims of identity fraud. Americans are most likely to have their identities stolen.
Cost of serious identity crime
Serious and organised crime is costly and of increasing concern to the community. The AIC estimated that serious and organised crime cost the Australian community between $23.8b and $47.4b in 2016–17, with the direct cost of identity crime alone being between $412m and $1.2m (Smith 2018).
You may become a victim of identity theft if: you have lost or had stolen important documents such as your passport or driving licence.
With just your name and phone number:
Fraudsters could impersonate you and convince your service provider to assign them a new SIM card in your name. Once they put the new SIM card into their phone, they can start using your phone number instantly. Your name will show up on the caller ID when they make outgoing calls.
Explain to the credit card issuer that someone opened an account in your name and that they are trying to steal your identity. From there, ask them to close or freeze the account so no one can add new charges unless you agree.
Identity theft has profound consequences for its victims. They can have their bank accounts wiped out, credit histories ruined, and jobs and valuable possessions taken away. Some victims have even been arrested for crimes they did not commit.
What is the Average Cost of Identity Theft? Most victims, according to the ITRC, lose less than $500. The FTC reports that the median amount of money lost to identity theft is $800.
The easiest way to become a victim of a bank scam is to share your banking info — e.g., account numbers, PIN codes, social security number — with someone you don't know well and trust. If someone asks for sensitive banking details, proceed with caution.
Banks have a legal and ethical responsibility to refund scammed money to their customers. However, you can't always get scammed money back. Whether it's a lack of evidence or human error on your part, thieves can sometimes get away with your stolen funds.
If a thief steals someone's ATM or debit card, they can't withdraw funds or make purchases because they don't have the PIN. This fact helps to reduce the potential for fraud.
Contact your police department, report the crime and obtain a police report. Decide whether you want to place a security freeze on your credit report.