What is Identity Theft?

Identity theft occurs when a criminal gains access to your personal information, such as your name, address, date of birth, financial details, and even your personal identification numbers (PINs), to impersonate you. The thief can then open bank accounts, make purchases, or engage in other illegal activities under your name, causing significant financial damage and emotional distress.

Why Identity Theft Is More Common Than Ever

We all enjoy the convenience of the internet with many tasks now completed online. Unfortunately this digital convenience creates more opportunities for cybercriminals to steal your identity.. With the use of phishing emails, fake websites, and data breaches, scammers can easily access vast amounts of personal data from unsuspecting victims.
 

How Identity Theft Can Affect You

Identity theft can have devastating consequences. Aside from the immediate financial loss, victims may face a long and difficult process of clearing their name. It can lead to bad credit scores, which in turn can affect your ability to obtain loans, credit cards, or even employment. The stress and time required to restore your identity can take years to resolve.

Common Types of Identity Scams in Australia

There are several types of identity scams that Australian consumers should be aware of:

• Phishing Scams
• Vishing (Voice Phishing) Scams
• SMiShing (SMS Phishing)
• Email Spoofing
• Tax Scams

Phishing Scams: The Hidden Dangers

Phishing is a scam method where criminals send fraudulent communications (often emails) that appear to come from legitimate sources, such as your bank or service provider. These emails usually contain links to fake websites that ask you to input sensitive information like your credit card details or personal identification numbers.

Phishing is particularly dangerous because the emails often look very legitimate and can trick even the most cautious individuals.

In Australia, phishing scams have become widespread. For example, scammers may pose as the Australian Taxation Office (ATO), claiming that you owe tax payments and asking for your personal details to verify your identity. Another common scam involves fake bank emails that warn of fraudulent transactions and ask you to provide your account information to resolve the issue.
 

How to Protect Yourself from Phishing

• Always verify the sender’s email address before clicking on any links.
• Do not click on links in unsolicited emails or texts.
• When in doubt, contact the organization directly using their official contact details.
   

Vishing Scams: Fraud via Phone Calls

Vishing involves scammers calling you and pretending to be from a legitimate company, such as your bank or an official government agency. They often ask for personal information, claiming it’s necessary to prevent fraud or resolve an issue with your account.
 

How Vishing Differs from Phishing

While phishing happens via email or text, vishing occurs over the phone. Vishing scams may be harder to detect since the scammer can directly engage with you and use tactics like creating urgency or fear to pressure you into sharing personal information.

Tips for Protecting Yourself from Vishing

• Never share personal details or passwords over the phone unless you’re sure about the caller’s identity.
• If you receive an unsolicited call, hang up and call the organization back using their official contact number to verify the call’s legitimacy.
   

SMiShing: A Growing Threat to Australians

SMiShing is similar to phishing, but instead of email, scammers use SMS (text messages) to trick you into sharing personal information. These messages may contain links that direct you to fraudulent websites, where your information is stolen.

Australians are increasingly being targeted by SMiShing scams. For example, you may receive a text saying that you’ve won a prize or that there’s an issue with your bank account, prompting you to click on a link and enter sensitive information.

How to Stay Safe from SMiShing Attacks

• Don’t click on links in unsolicited text messages.
• Verify the sender’s phone number and always question unexpected offers or requests for personal details.
• Use SMS filters and anti-phishing apps to block malicious messages.

Email Spoofing: When Emails Aren’t What They Seem

Email spoofing occurs when a scammer forges the sender’s email address to make it appear as though the message is from a legitimate organization. The goal is to trick you into clicking on malicious links or disclosing personal information.

Common Signs of an Email Spoofing Scam

• The email address may look suspicious or unfamiliar, even if it appears to be from a trusted source.
• The email may contain spelling mistakes, incorrect grammar, or a sense of urgency.
• It may ask you to click on a link or download an attachment that could contain malware.

How to Avoid Falling for Email Spoofing

• Always verify the sender's email address.
• Never click on links or download attachments from unknown senders.
• Use email verification tools to check if the email is legitimate.
   

Tax Scams: Fake Tax Office Communications

Tax scams are incredibly prevalent in Australia. Scammers impersonate the Australian Taxation Office (ATO) and claim that you owe money, urging you to pay immediately. They might threaten legal action or arrest if you fail to comply.

Victims of tax scams may receive phone calls or emails that look legitimate, often with an official-sounding tone. For example, the ATO may be impersonated in a fake call claiming there’s an outstanding debt that must be paid immediately.

How to Identify and Avoid Tax Scams

• The ATO will never demand immediate payment over the phone.
• Never share your personal details over the phone unless you're sure of the caller's identity.
• Verify any communication claiming to be from the ATO by contacting them directly.
   

How to Spot and Prevent Identity Theft

Recognising the signs of identity theft early is crucial in preventing further damage. Common signs include:

• Unexplained transactions on your bank statements.
• Bills or credit cards arriving that you never applied for.
• Denial of credit or a sudden drop in your credit score.
   

Precautionary Measures to Take Before Identity Theft Happens

• Regularly monitor your credit report and bank accounts for unusual activity.
• Use strong passwords and two-factor authentication for your online accounts.
• Be mindful of where and how you share personal information, especially on social media and untrusted websites.
   

The Digital Age and the Rise of Online Identity Theft

The digital age has made it easier for criminals to steal personal information. Cybercriminals often target Australian consumers by exploiting weak security measures or using sophisticated social engineering tactics to trick people into giving up their personal details.

With more services and transactions happening online, it's more important than ever to protect your digital identity.

To protect your identity, take the following steps:

• Use strong and unique passwords for your accounts.
• Enable two-factor authentication wherever possible.
• Regularly monitor your credit and financial statements for any suspicious activity.
   

How Equifax Helps Protect Your Identity

With Equifax’s credit monitoring and identity protection, you have access to tools and insights needed to stay informed, proactive, and confident. 

As identity theft becomes more prevalent in Australia, consumers must stay vigilant and proactive in protecting their personal information. By understanding the most common types of scams and taking the necessary precautions, you can reduce your risk of becoming a victim.

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.