The truth about internet fraud

Posted on 7 May 2009 at 14:53

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Mail theft

If you've ever lived in a shared house or in flats where post is stored communally, you'll know how easy it is to obtain other people's mail. That means access to their utility bills, bank and credit card statements and other sensitive documents.

A dishonest person living with or near you can intercept your mail and make applications for services using your details. If successful, they can steal the responses sent by the companies and change your customer details so that mail is sent to a different address.

Some fraudsters go one step further by redirecting all their victims' mail to a different address. Despite documented cases where this has happened, Royal Mail told us: "ID is required to set up a redirection. When a redirection is applied for, or if any changes are made to a redirection, Royal Mail notifies the occupant of the address from which the mail is to be redirected." Of course, if a fraudster already has your ID they can start a redirection themselves. If they also have access to your mail, they can prevent you receiving notification.

Mail theft is certainly easier if the thieves have access to your current or previous address. If you don't use mail redirection when you move, credit card offers and personal mail may fall into the hands of scammers who occupy your old home. In one case documented by CIFAS, a couple moved house and later discovered that the new occupants had re-registered them on the Electoral Register and applied for a credit card. They ran up a bill of £2,500, which was discovered only when the victims applied for a card themselves and were declined.

Lottery wins and other scams

If you receive a letter or email with the news that you've won a lottery you don't remember entering, or that you're the beneficiary of some bonds, be suspicious. If you're then asked to supply personal details such as your date of birth and mother's maiden name, you can be sure it's a scam designed to steal your identity.

Replying to such messages with your personal details will allow these fraudsters to apply for credit cards and, in one case that we've heard of, also gain access to personal bank accounts.

Bins, robbery and skimming

What do you do with your most valuable stash of personal information? Throw it in the bin, usually. Going through rubbish bins is a popular modus operandi for identity thieves. All those old bank statements, shopping receipts, credit card and utility bills can help them apply for credit accounts in your name.

Muggers, burglars and pickpockets can earn themselves a bonus by abusing personal details found in recently stolen wallets and purses. Criminals working at shops and restaurants can use a device called a skimmer to copy your credit or debit card's details. The magnetic reader allows them to clone your card and start spending on your account. Handheld skimmers, or devices attached to ATMs, are often used for this purpose.

Hoaxes and scams

So far we've looked at how the bad guys can steal your identity and use it to commit fraud. In most cases, ID theft involves stealing money from companies, not individuals. However, the anonymity of the internet makes it an attractive tool for fraudsters to approach people directly and attempt to trick them into handing over their money. We've compiled a list of the most common types of scam that you're likely to encounter on the internet.

Fake websites