One in five Australians aged 16 or over have been victims of identity theft, after having someone try to access their bank accounts, steal or skim credit cards or access their PIN, according to a new report.
The figures come just days after it was revealed hackers are using the recent earthquakes and tsunamis in the Pacific to scam people into downloading malicious software.
The Veta Advantage Identity Crimes Report reveals more than 1.5 million Australians have had their credit cards illegally “skimmed”, where a credit card’s magnetic information is stolen, while 1.2 million have seen their bank accounts accessed illegally.
The report also found that fraud in Australia is up by at least 23% this year, an increase which Veda spokesperson Kelvin Kirk attributed to the downturn. About 4.4 million Australians were affected by crime during the past 12 months, compared to 3.8 million for the same period in 2008.
But according to the survey, nearly 70% of Australians have made no attempt to protect their identity.
“Higher unemployment creates more crime, we know that. But people are simply not aware how common (identity fraud) is,” he told The Age. “Even everyday mail of bank statements or utility bills can be enough for criminals to gain access to your accounts or apply for credit in your name.”
“Australians older than 50 years are less likely to have ever experienced bank account or credit card crime, compared to those aged 25 to 49 years, a quarter of whom have been personally affected by identity crime, including having bank accounts and credit cards illegally accessed; or mail; and or PIN numbers stolen.”
But Kirk said the theft doesn’t just occur online, with old-fashioned mail theft still prevalent among victims.
“It’s one of the easier ways to gain through crime. It’s easier than going to rob a bank. If you’ve ever moved into a new house the amount of mail you receive is incredible. A lot of identity checks relate to having to bring in a bill or to bring in some paper work to show your name and address and details. Your bank statements, your utility statements, are actually used to identify a person.”
Kirk said a number of people turn to crime after their hours have been reduced, or they have been fired altogether. He also said there are a number of instances where people apply for loans in other people’s names, then take the cash and run.
“Then they try to prove they didn’t apply for the fraudulent loan which turns into a nightmare,” he said.
The figures come after it was revealed recently the Federal Government will introduce new legislation that will make trading secure digital information illegal, reducing the burden on businesses dealing with such information.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
