Research by data and analytics firm Experian reveals that wealthy couples are the second most frequently targeted demographic for identity theft. The research also reveals that identity fraud victims are being targeted from more affluent towns in the vicinity of the UK’s major cities such as Manchester, Birmingham and London. Research shows wealthy couples were particularly likely to be targeted for credit card fraud or fraudulent loan applications.
Experts say HNW clients are targeted not just because they have more money, but because there are more ways they can be targeted. For example, they are likely to have multiple credit cards and bank accounts and make more purchases online. Along with this, they are more likely to rely on employees or other intermediaries to make purchases for them – all of which increases their susceptibility to crime.
How do identity thieves work?
To assume somebody else’s identity, criminals will seek to acquire multiple pieces of personal information, for example credit card details, home addresses and passwords.
Identity thieves will use various routes to acquire the information they need. It is estimated around 80% of identity theft now happens online; however, criminals don’t necessarily have to hack into an individual’s computer to obtain personal information.
There are various channels ID thieves will use:
- Tricking people into giving away personal information via email or website phishing scams
- Scouring an individual’s social media accounts to find useful personal information such as their date of birth or other personal identifiers
- Tricking people into divulging personal information over the phone, or in response to letter scams
- Stealing items of ID, such as passports and driving licences
- Searching through discarded rubbish in the hope of finding paperwork such as bank statements or credit card applications
How can you minimise your risk of ID theft?
Preventing identify theft requires a combination of online and physical security measures.
Online measures you should take to prevent ID theft are to:
- Never divulge private information in response to a request via an email or website, unless you are certain the request is from a legitimate source
- Use a password that is difficult to guess and change it regularly
- Avoid sharing too much personal information on social media
- Be wary of phishing scams
- Avoid using shared public PCs to access internet banking
- Only use reputable websites to purchase goods/services
Physical security measures you should take to prevent ID theft are to:
- Securely file sensitive documents, and shred those you no longer need
- Arrange for paperless bills and statements where possible
- Redirect mail when you move home
- Be aware of people who may be looking over your shoulder when entering passwords or PINs into a computer or ATM
- When travelling, lock your passports, driving licences and other items of identification in a safe when they are not required
Spotting the signs of identity theft
As identity theft does not always have to involve the physical theft of items, it is possible some time may pass before victims realise they have been targeted. For example, if you don’t check your bank statements regularly, you may not notice unusual activity.
You should be looking out for indications of identity theft, such as:
- Unusual entries on bank or card statements
- An absence of usual bills or correspondence (a criminal may have given a different address in place of the victim’s)
- Being unable to log in to an online account (a criminal may have logged in to that account using the victim’s password, and subsequently changed the password)
If you discover you have become a victim of identity theft, it is vital you act quickly to limit the damage. For example, if you suspect a criminal has discovered one of your passwords and used it to access one of your online accounts, you should immediately change your passwords on all other websites and accounts.
How can insurance help?
Most high net worth policies include cover such as identity theft protection and fraudulent use of credit cards.
Get in touch with our Executive Home team to find out more about our high net worth policies and how you can protect yourself against identity theft. Call us now on 01489 579808 or contact us via our web form.
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