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.
Identity crime is a significant threat in Australia, with a growing number of people falling victim every year. Those impersonated often face severe consequences, including financial losses, damage to their credit score, and legal ramifications.
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.
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).
They may face denials of loans and mortgages, and be refused employment. They may also be unable to open a bank account, and may need to spend months or years attempting to resolve economic mistakes and issues. Identity theft can also have potentially life-threatening consequences.
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.
Victims of identity theft will feel overwhelmed at times by the psychological pain of loss, helplessness, anger, isolation, betrayal, rage, and even embarrassment. This crime triggers deep fears regarding financial security, the safety of family members, and the ability to trust again.
A maximum penalty of 10 years imprisonment is applicable. The Act also criminalises possession of identification information (section 192K), and possession of equipment to make identification documents (section 192L). These offences carry respective maximum penalties of 7 years, and 3 years imprisonment.
In 2021-22: 8.1% of persons (1.7 million) experienced card fraud. 2.7% of persons (552,000) experienced a scam. 0.8% of persons (159,600) experienced identity theft.
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.
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.
Identity theft generally involves three stages: acquisition, use, and discovery. Evidence suggests that the longer it takes to discover the theft, the greater the loss incurred and the smaller the likelihood of successful prosecution.
The wide-range of identity theft-related crimes makes it hard to put a clear timeframe on recovery. However, on average, it can take over six months and 100–200 hours of your time to discover, resolve, and recover from the effects of identity theft [*]. But that's just the average.
Data breaches that expose your passwords and sensitive data. Data breaches are the leading causes of identity theft. As of October 2022, there were 1,291 data breaches with over 160 million victims [*]. Data breaches take place when hackers break into services that you use and steal your stored information.
In most states, you're not liable for any debt that occurred as a result of fraudulent accounts being opened. Plus, under federal law, you are only liable for the first $50 in fraudulent charges on your credit card if someone uses your card to make a purchase.
To find out who opened a loan in your name, check your credit report, which will list the account and lender. Then file a dispute with all the major credit bureaus (Experian, Equifax, and TransUnion) to remove the entry from your report.
Consumers Aged 30-39 Were the Most Victimized
Those who fall into the age range of 30-39 were most victimized by identity theft.
(9) Red Flag means a pattern, practice, or specific activity that indicates the possible existence of identity theft. (10) Service provider means a person that provides a service directly to the financial institution or creditor.
Information on ID card is inconsistent with information on file in the organization. Application appears forged, altered and reassembled. Personal information is inconsistent across multiple sources. Lack of correlation between social security number range and date of birth exists.
A thief might: steal your mail or garbage to get your account numbers or your Social Security number. trick you into sending personal information in an email. steal your account numbers from a business or medical office.
File a report with the Federal Trade Commission (FTC).
If you report your identity theft to the FTC within two business days of discovering it, you will only be liable to pay $50 of any unauthorized use of your bank and credit accounts (under federal law).
Signs of identity theft
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.
An identity thief would have to obtain personal details such as your name, birthdate and Social Security number in order to open a credit card in your name. However, it is a federal crime to do this, and it can result in jail time when the thief is caught for their behavior.