Preventing Identity Theft and Its Consequences

This assignment provides a comprehensive overview of identity theft, its consequences, and preventive measures. It emphasizes the importance of cybersecurity practices, such as using strong passwords, implementing security software, monitoring bank transactions, and requesting credit reports. The assignment also highlights the risks associated with identity theft, including financial, physical, and mental health consequences. By understanding these risks and taking proactive steps to prevent identity theft, individuals can protect themselves from its harmful effects.

IDENTITY THEFT
31266 Introduction to Information
System
Assignment 2
Word Count: 1499 words
Members

Introduction
The continual growth of technology has facilitated online transactions and sharing of personal
information, compelling it to be an indispensable aspect of human life. Due to society's heavy
dependency on technology to store and distribute data has enabled criminals to use various
means and channels to steal personal information. Moreover, it is a common white-collar
crime that transcends an-individual's age, wealth levels, and social class. Identity theft is
defined as the illegal acquisition-of another person to obtain someone else's account number,
password, or other trusted information; the impersonator can use this information to purchase
goods or services (Cyber Space Times, 2015). Culprits obtain private information through
means such as stealing information from unsecured networks, phishing, theft of mail articles
and wallets, breaching into databases and searches through household or commercial rubbish.
To understand the severity of this threat, an examination of the negative consequences and
real-life examples extracts the appropriate responses for future cases.
Negative Consequences
Technological development has enabled identity theft to negatively impact this generation,
facilitating its prominent contribution in violating-individual and organisational privacy.
Society's increasing-reliance on technology to store-personally identifying details covering all
practices of services and commerce has-precipitated detrimental ramifications. Furthermore,
identity theft is capable of obstructing career advancement and tarnishing social status with
the publication of private materials. The magnitude of the repercussion comprises emotional
distress, psychological-trauma, and financial and social suffering. Distress that derives from
identity theft, particularly offences that-necessitate criminal charges, equates to victims of
personal crimes, whereby the overall quality of life diminishes. Golladay and Holtfreter's
(2017) dissection on-the National Crime Victimisation Survey revealed that over 80% of
identity theft victims-disclosed experiencing emotional distress such as anxiety and
depression, while more than 21% encountered physical complications including high blood
pressure and headaches. Sharp et al.'s (2004) psychological examination on identity theft
victims with previous mental health issues revealed that these individuals are more vulnerable
to suicidal ideation and a major depressive episode. Thus, emotional, psychological and
social strains can derive from identity theft where social media, financial and services
accounts are compromised.
Financially, after the immediate impacts of identity theft on credit files dwindle, victims may
encounter difficulties restoring their demolished credit scores. Accordingly, chances of
financial institutions accepting loans may decrease, restricting investment opportunities and
purchasing of long-term assets. Alternatively, consumers may cease to utilise the apparent
development in their financial health and lessen their presence in the credit card market
(Blascak et al. 2019). Henceforth, identity theft has adverse spillover effects that can
influence a victim's mental and physical health, social status and consumer decision making.
Cases of Identity Theft
Identity theft exhibits differing socio-demographic risk and protective profiles where
individuals with higher socioeconomic status are at a higher risk of existing credit card and
bank account fraud. Burnes, Deliema and Langton's (2020) reported that members of baby
boomers and generation X were at an elevated risk, reflecting their socioeconomic capacity
and consumption patterns relative to millennials. Although specific demographics display
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greater vulnerability to the threat, identity theft emerges in cases globally with victims from
various social classes.
In the case of Bob Hartle, a middle-aged man from Pheonix, Arizona, fell victim to identity
theft to a man who wedded and also bankrupted his mother. Poster (2007) revealed that the
thief had borrowed over $100,000 worth of cars, merchandise and homes under Hartle's name
and proceeded to file for bankruptcy. By acquiring a driver's license with Hartle's profile, the
imposter acquired mortgages and jobs with Hartle's military background, speeding fines,
failed to pay taxes, and opened charged accounts. It took Hartle 4 years, contacting over 100
people and an additional $15,000 to restore his name and repair the damages. Occurred in
1994, Hartle's case exposed the inadequacy of government service centres and law
enforcement agencies resources to trace, examine and certify identities thoroughly in light of
the emerging threat of identity threat.
Credit card fraud is the simplest and most common form of identity theft. It may happen
when a personal credit card pre-approval form falls into the hands of a thief when they have
the driver's licence number or passport information. In the case of Hilary Harper, an ABC
Melbourne radio host, fell victim to credit card fraud after she reported her missing purse.
She has since engaged in a battle with multiple agencies that think the thief's illegal activities
were her doings. After someone swindled up to $700 in tap-and-go purchases, Harper
reported the suspicious activities and was able to retrieve her losses in full amount. Six
months preceding that incident, the criminal started to abuse Harper's ID by manufacturing a
new credit card and phone number as a cover for their crime. Subsequently, this created more
issues which hindered Harper's daily life and reputation. According to Lacey (Mills, 2018),
older people are the most vulnerable group, and particularly individuals who reside alone. He
further noted that there is no correlation between one's intelligence and victims of deception
as the thieves often have information about their targeted victims.
Identity theft is a non-discriminatory offence that affects a wide range of individuals,
including children, despite the belief that a child's identity has no economic benefits.
Contrastingly, utilising a child's social security code enables collecting of social benefits and
fraudulent credit transactions. In April 2018, Cynthia Lockwood, a member of an identity
theft organisation, had opened a $ 25,000 credit line using a 12-year-old child's social
security code. The criminal group specifically targeted minors, using children's identity
information and social security number (SSN) to open credit cards, totalling to an amount of
$ 420,000. Children's SSN code does not contain any credit history, enabling criminals to
exploit the synthetic identities to apply for loans, obtain medical treatment, purchase
merchandise and file a fake tax return to attain internal revenue service refund (Parent 2019).
Therefore, regardless of one's wealth status, intelligence, or social demographic, personal
information should be secured to avoid identity theft.
Recommendation
The prevalence of identity theft should compel individuals to partake in simple actions that
can deter or prevent them from falling victims to the threat. Generally, the burden of proof
cascades on the individual to prove the fault in the matter in fraudulent activities, enabling
identity theft to proceed until the victim attempts to ascertain the perpetrator. Early detection
can avoid the time-consuming process and requires periodic monitoring and consistent
practice by technologically vulnerable individuals. The Australian Government and ASICS's
Moneysmart (2020) outlined the following quotidian habits and technological preventions.
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 Secure personal mails
By securing locks on private mailboxes, this will prohibit people from stealing
irreplaceable letters and personal written information.
 Shred confidential documents
Fragmenting financial documents from employers, superfund, and banks that may contain
personal information will prevent scammers from exploiting intact paperwork when
discarded.
 Be vigilant when using public computers
Operating computers in public institutional, educational or mercantile buildings will
attract unwelcome theft activities, and users should clear internet history before leaving
the vicinity. All accounts should be logged out of and certify that the computer has not
retained any login details of valuable accounts.
 Be attentive and aware when using social media
Refrain from posting confidential information such as residential or work address and
frequented locations on social platforms, especially if the profile is public. Individuals can
also restrict who has access to their social media account with "friends only" or "friends
of friends" mode, where unspecified individuals cannot skulk on profiles for valuable
information.
 Employ strong and unique passwords
Ensure that all passwords are lengthy and complicated by incorporating a combination of
capital and lowercase letters, numbers, symbols, and innovative words to avert people
from hacking into private accounts.
 Implement security software on a personal computer
Inputting virus protection software will repel hackers from accessing individualised
information and filter out vicious links, fake websites or malware.
 Monitor bank transactions
Frequently inspect bank statements and online accounts for unusual and suspicious
transactions. Early detection of theft eliminates the possibility of thieves pocketing a
substantial amount of funds.
 Request a duplicate of personal credit report
At the minimum, check credit reports annually for abnormal or erroneous debts as this
will display the current financial stance and exercise quality theft prevention activities.
Identity theft is a universally emerging issue that ensues serious health, psychological and
financial consequences, yet individuals can engage in routine preventative behaviours to avert
and mitigate the threat. Adequate day-to-day and cybersecurity practices as the ones
previously mentioned are crucial in protecting individualise identity and securing personal
information.
Conclusion
In essence, although advanced-technology makes life convenient for society, it also
contributes-to the phenomenon of identity-theft. Identity-theft threatens not only people's
financial-security but also their-physical and mental health. Individuals with higher
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socioeconomic status are at a relatively-higher-risk of existing credit card and bank account
fraud due to their spending behaviours and capability to consume more considerable
amounts. However, identity theft is non-discriminatory and affects adults of economic status
and children as information allows thieves to exploit government and financial benefits. It is
challenging to trace culprits online, and individuals should employ the safeguards mentioned
to reduce their vulnerability to identity theft.
Reference List
Blascak, N., Cheney, J., Hunt, R., Mikhed, V., Ritter, D. and Vogan, M., 2019. Financial
Consequences of Identity Theft: Evidence from Consumer Credit Bureau
Records. Working paper (Federal Reserve Bank of Philadelphia).
Burnes, D, DeLiema, M. and Langton, L, 2020. Risk and protective factors of identity theft
victimization in the United States. Preventive Medicine Reports, 17, p.101058.
Golladay, K. and Holtfreter, K., 2016. The Consequences of Identity Theft Victimization: An
Examination of Emotional and Physical Health Outcomes. Victims & Offenders,
12(5), pp.741-760.
Mills, N, 2018, ABC Melbourne Radio Host's Identity Theft Nightmare Could Also Happen
To You - ABC News, Abc.net.au, viewed 27 April 2020,
<https://www.abc.net.au/news/2018-06-06/abc-radio-host-hilary-harper-long-fight-
after-identity-theft/9836272>
Moneysmart.gov.au. 2020. Identity Theft Protect your Personal Information, viewed 21 April
2020, <https://moneysmart.gov.au/banking/identity-theft>
Parent, 2019, Real Identity Theft Stories | Case #11: Fraud Ring Steals Children's Identities,
identityforce, viewed 24 April 2020, <https://www.identityforce.com/blog/real-
identity-theft-stories-part-11-child-id-theft>
Poster, M, 2007, ‘The Secret Self’, Cultural Studies, 21(1), pp. 118–140.
Sharp, T., Shreve-Neiger, A., Fremouw, W., Kane, J. and Hutton, S., 2004. Exploring the
Psychological and Somatic Impact of Identity Theft ISSN: 0022-1198. Journal of
Forensic Sciences, 49(1), pp.1-6.
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