It is simply because we are not aware of all the open doors in our private life and full risk factors. At home we feel most comfortable and secure. The thought of personal attack for fraudulent use does not often cross our mind from with-in our sanctum. And that is why we often disregard even the smallest home data security procedure that could save us from being profiled for identity theft.
Identity profiling is something that corporations do all the time to learn more about you. Criminal activists profile personal data for fraudulent activity. The principles are the same with two distinctly different outcomes.
Corporations gather data on you to better understand your buying habits - to sell to you. They data-mine from your online activities, credit card transaction buying habits, and a variety of other sources at their disposal. All in the name of learning more about you to sell to you. Or, to sell more to you if the opportunity presents itself.
Identity theft artists gather data on you - to become you.
They need simple information that is readily available online. And some information which is not that readily available. Dumpster diving is a name given to the practice criminals use to gather information about you through your garbage. Since recycling is something that has become more common in all municipalities, Blue bin tipping is now a far more useful tool at their disposal (pun intended).
Paper matter is required to be recycled in most municipalities now. But many home owners recycle statements, invoices, junk mail and receipts with little thought to the valuable identity and account information included in them. Even direct mail advertising which is addressed to you can be used as a tool for identity theft.
As indication of the danger recycling possesses, at 11:00 PM on a cold and windy January night, one of my neighbors had put their recycling bins out on the curb. Several papers blow off their bins into my front yard. I quickly gathered them up and noticed one paper in particular from the neighbor's recycling. It was an inkjet copy of the front and back of their driver's license. There were also several utility statements and phone bills dating back to 2004. What ever possessed them to blindly recycle that kind of material in the first place. I promptly gathered up the rest of the papers and went inside to put their documents in my paper shredder for them.
My wife and I have had several "discussions" on some of the material I pull out of our own recycling bin in the kitchen. Anything with our names or address, even the kids free return address Disney labels we receive are to be put in the shredder before disposal. The telephone company direct mail fliers, the cable company e-bill copy, a "Time to re-order." cheque-book stub with our branch transit and account number preprinted at the bottom, and the inappropriate credit card advertising mail: "You've been approved for a $50,000 line of credit..." (with my name and address pre-filled-in application included).
As a side note, I wish these companies would stop sending this stuff since they include their advertising costs buried into the bottom line I pay them every month - what a waste of my money. Just reduce my service costs and stop sending this stuff since I don't need to pay to advertise their services to myself. I already know what services they offer and "will contact you" if I'm interested.
Getting back on track. If you hadn't noticed, there are several key points I've added to the fore-mentioned items found over time in my own recycling bin. Some of the information required to target and profile me for identity theft are there: Name and address, several account numbers and other banking information, general monthly creditors including some spending habits, and a key indicator to my credit worthiness and limits.
With this information, a crafty identity theft artist can profile me, potentially obtain credit in my name, or use the information to acquire services in my name to do a great deal of damage in a short amount of time.
In defense of creditors, credit card companies and banks - they do have their security policies in place to protect me and their interests. But, since the reported identity theft statistics from CAFC shows a 18.4% increase from 2009 to 2010 - it is clear not all credit or financial application security check-points are infallible.
Needless to say, in regards to the content that ends up in my own recycling bin, it was the one marital discussion I have managed to win. One for the men and personal information security alike.
There are some simple and important policies you can deploy right in your own home to ensure data security. These are the same basic procedures Corporations use everyday. Some are also policies that the RCMP(2) recommends on their website as preventative measures to stop identity theft:
Trash and recycle bins are a goldmine for identity thieves.
Make sure you shred all your receipts, statements and documents before disposing of them. You should also shred envelopes with addresses printed on them from the parties you buy or subscribe to. This eliminates the profiling of your buying habits as it relates to your waste. I recommend buying a small home office cross cut shredder from OREweb.ca. The shredders they carry out perform other store bought shredder models. One of these document security appliances can also last 20 or more years for home use. A cross cut will also shred documents into smaller randomized waste particles. Put the waste into paper bags to be discretely included with cardboard and other paper recycling, not in clear plastic bags.
Familiarize yourself with the billing cycles for all your utility, credit and bank accounts.
Make sure you are not missing any statements in their billing cycles. The potential always exists for mail theft which can also be a factor for identity fraud profiling.
When you move, notify the post office and set-up mail forwarding to your new address.
Visit your bank and call your credit card institutions to update your address with them directly. You should also update with government institutions like Revenue Canada. Monitor all your forwarded mail from the post office (they usually forward for 6 months). Update any address, including junk mail (sorry to say), with the party you receive the mail from until all mail comes directly to your new address. You might also want to consider putting a "Return To Sender / Moved" label on junk mail and putting it in the mail box for return to the issuing company. This may minimize your future junk mail if the sending party reviews and cleans their database to reduce mailing costs.
Obtain and review your personal credit report from a credit bureau at least on a yearly basis, if not more.
Report any discrepancies to them immediately. Here are two major Canadian credit institutions you can obtain a report from: Equifax Canada (Tel:1-800-465-7166) and Trans Union Canada (Tel:1-877-525-3823).
Identity Theft can occur via the Internet, email, telephone, fax or through door-to-door solicitation.
Read more about and learn how to identify fraud signs, and be cautious of parties contacting you trying to obtain financial information including: income, financial status, account details or any other sensitive personal data. Find out more about other identity theft risk factors.
Keep all your account and financial documents secure.
I put all my monthly bills and statements paid into a 3-ring binder to store in the safe. This not only keeps your data organized and safe in case of intrusion, but helps keep you organized for tax time. Remember, don't throw out or recycle your old tax records - SHRED THEM! Review and secure any other sensitive information in your home and store in a locked filing cabinet.
Empty your wallet out and review all the items you carry with you.
You don't need everything in there day-to-day. Remove anything you really don't need and store in the safe with your other important documents.
Do not leave any important documents in your car in the garage or driveway.
There are times when you forget to lock your vehicle. And even if locked, personal information is still easy to access. This includes your insurance and ownership of your vehicle.
Subscribe to a credit monitoring service.
They have the facilities in place to monitor and report to you on new credit inquiries and credit applications in real time to ensure someone is not trying to defraud your good name.
Author: Stan Richi
Published with consent from the author.
(1) Identity theft statistics from CAFC - 2010 Annual Report.
(2) RCMP Identity Theft and Identity Fraud tips.
