What are the impacts of having your identity stolen? 

Financial loss 

Criminals using identity theft often seek financial gain. They may steal money from your account or apply for a loan or fake credit card in your name, saddling you with debt. Your stolen details may also get used for applying to Centrelink programs or claiming medical benefits. Financial loss often accompanies any fraud, and identity theft is no exception.  

Trauma 

Identity theft can shake an individual badly. Many people don’t believe it will happen to them until after the fact. It is a traumatic experience – especially for older people who may be more easily confused. Victims of identity theft should consider seeking counselling or support to assist them with recovery.  

Time wasted 

Dealing with the ramifications of identity fraud can be a painstaking exercise. Credit cards may need replacing, multiple parties will be involved (such as your bank, police etc.), and there may be a lengthy legal process to follow if the perpetrator gets identified. Additionally, money stolen from bank account holdings can take significant time to be reimbursed.  

Credit score impacts 

If a criminal applies for a loan, utility, phone or other product in your name, it may negatively impact your credit score (at least temporarily). If you are a victim, report the theft to the police, your bank and the reporting bureaus (Equifax, Experian and Illion). Doing so may help rectify any impact on your credit score. 

How to check if someone is using your identity (and protect against theft) 

It can be hard to find out if someone is using your identity as there is no free identity theft check silver bullet. It is critical to remain vigilant. The following are some suggestions to check if you are a victim of identity theft or looking for warning signs. If unsure, it may be worth contacting the police.  

• Regularly check bank account, utility, and phone bill statements for unusual or fraudulent activity, or have an authorised, trusted financial advisor do so. The same extends to the activity in your tax returns. Any unusual activity should be queried and followed up with the provider. Report identity theft to the authorities as soon as it is identified.  
• Check your credit score regularly with all major bureaus. Any abrupt or unusual changes should be referred immediately to the reporting bureau and brought to the police if unexplained. 
• Speak to friends and family to see if they have had any unusual interactions. If they’ve received any communication from a profile or account claiming to be you that you did not send, or you think “there is someone using my phone number”: contact the police.  
• Learn the warning signs for phishing and smishing attempts, and keep an ear out for any news about widespread fraud within your area or network. Do not reply to any email or text from an unknown number or suspicious email address. Fake ID consequences may arise from any engagement with such parties.   
• Keep track of important documents. If your licence, medical paperwork, passport or any other document is missing – you may be a victim of identity theft. Important mail is also potentially sensitive, so it may be worth reporting undelivered items.
• Use security features such as 2-Factor Authentication (2FA) or biometric security (as found in SmartID by CreditorWatch) to help secure accounts and sensitive information.   

What should you do if you suspect you are a victim of identity theft? 

The Office of the Australian Information Commissioner (OAIC) officially recommends you take the following steps if you suspect identity theft: 

• Report the fraud 

The first step you should take is to report the incident to your local police station (do not call 000 as this is for emergencies only). Request a police report or reference number so you have evidence that you reported the issue, as your bank or provider may require this documentation..Then, contact the organisation or agency that issued your identity document, and your financial institution and tell them what happened. Additionally, you may report cybercrime securely to the Australian Cyber Security Centre at ReportCyber. 

• Change your passwords 

Immediately change your account passwords and close any unauthorised accounts. Consider using complex passwords up to 25 characters long, including numbers and symbols, to make it harder for hackers to guess them.  

• Seek expert advice 

It may be worth contacting IDCARE, Australia’s national identity and cyber support service, to get expert advice from a specialist identity and cyber security counsellor. 

• Get a copy of your credit report 

Identity theft can damage your credit history and credit score. It is worthwhile getting a copy of your credit report to check for evidence of fraud, such as a credit card opened in your name or your business name. You’re entitled to a free credit report once every three months. This will also show which organisations have recently checked your credit history, so you can tell them not to authorise a new account in your name. 

You may also want to reach out to credit reporting bodies and request a ban period be placed on your credit report. During a ban period, the credit reporting body won’t use or disclose your credit report or add new information to it. 

• Consider whether you may need a victims’ certificate 

A victims’ certificate may help you with problems in your personal or business affairs caused by identity crime. You can apply for a Commonwealth Victim’s Certificate from the  Department of Home Affairs, or from some states and territories, depending on the type of identity crime that occurred. 

Verify the identity of customers with SmartID from CreditorWatch 

Identity thieves aren’t just looking to defraud individuals – they look to do the same with businesses. Your business must be able to verify that every customer is who they claim to be to mitigate risk. Thankfully, SmartID from CreditorWatch uses sophisticated biometric technology, government data sources and liveness checks to streamline the verification process during onboarding. Verification is completed in seconds so the application can proceed securely and quickly. 

Saving time and money, SmartID leverages Ocular Character Recognition, Multi-Level Encryption, and Data Validation to deliver unparalleled security and data accuracy. With net fraud on the rise in Australia, you must take steps now to verify customers before unscrupulous criminals unlock access to your business. Acting preemptively may save your team a lot of time and money. 

To verify your customers and protect your business – speak to our expert team today.