KPI Explainer: What is Identity Theft?
WHAT IS IDENTITY THEFT & Guarding Against Identity Theft – CyberKPI: Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain.
Guarding Against Identity Theft: Types, Methods, and Protective Measures
A comprehensive guide on understanding identity theft, its types, common methods used by thieves, preventive measures, reporting procedures, and identity theft protection services.
Understanding Identity Theft
Identity theft is the fraudulent use of someone’s personal information for financial gain or other illegal activities. In Europe, small businesses are increasingly becoming targets for identity thieves due to their susceptibility to cyber threats. In 2022, there were over 1.1 million reported cases of identity theft to the Federal Trade Commission, highlighting the prevalence and impact of this crime.
Small businesses in Europe face significant consequences when falling victim to identity theft. Apart from financial losses, they may suffer reputational damage and legal repercussions. It is crucial for SMEs to be vigilant and take proactive measures to safeguard their sensitive information against malicious actors.
Types of Identity Theft
Account takeover identity theft occurs when a fraudster gains unauthorised access to an individual’s existing accounts. On the other hand, criminal identity theft involves using someone else’s identity when committing a crime, potentially implicating the victim in illegal activities. These types of identity theft can have severe implications for small businesses in Europe, leading to financial harm and legal issues.
One example of identity theft affecting SMEs in Europe is when hackers gain access to a company’s financial accounts and make unauthorised transactions, causing monetary losses and disrupting business operations. By understanding the various types of identity theft, small businesses can better protect themselves against these threats.
Common Methods of Identity Theft
Small businesses in Europe may fall victim to identity theft through a phishing email that tricks an employee into providing login credentials, allowing hackers to access the company’s sensitive data. By being aware of these common methods, SMEs can implement robust security measures to mitigate the risk of identity theft.
Preventive Measures
Small businesses in Europe can protect against identity theft by implementing a document shredding policy for all sensitive paperwork and encouraging employees to use digital wallets for secure online transactions. By adopting these preventive measures, SMEs can strengthen their defences against identity theft incidents.
Reporting Identity Theft
If a small business in Europe suspects identity theft, they should immediately report the incident to the local authorities and notify their financial institutions to prevent further fraudulent activities. By understanding the reporting process, SMEs can take swift action to mitigate the consequences of identity theft. Download KPI/… Register Free to Download this KPI
Recommended Reading:
This book describes the different types of theft, how they happen and the simple steps to prevent them. If it has happened to you, this book also gives you the steps you must take to repair the damage done to your name, your credit rating and even your medical records.
Top 5 Identity Theft & Fraud Protection Providers
