Houeholds at risk of hack attack

A stolen identity can cause big financial losses – but with a password on your computer you can be fairly confident you’re not at risk, right? Wrong. There’s a big gap in the defences of many Aussie homes and hackers are just waiting to exploit it.

You’d think that changing your PINs regularly, keeping an eye on your smartphone, having a password on your computer and keeping your anti-virus software up to date would keep you safe, wouldn’t you? Well … maybe not. Unfortunately, there’s a whole new way for hackers to attack, and even with all these measures in place there could be big gap in your defences that cyber-criminals are able to exploit.

There are a lot of disturbing stories out there that prove how sophisticated cybercrime has become, with high-tech criminals now able to hack into ATMs and bank accounts. But for many Australians, the biggest risk of identity theft, fraud and cybercrime could be lurking very close to home. Unsecured wireless networks are posing a new risk for their owners, with hackers able to use non-password protected wi-fi for fraudulent activity.  According to internet security experts, unsecured wi-fi can open any device connected to the network up for attack, with hackers able to turn computers and other devices into ‘robots’ to send spam, access personal details, and even attack other systems.

There are so many different things you need to do to protect yourself from identity theft that it can be easy to be lulled into a false sense of security when you feel you’ve got the basics covered. People have passwords on accounts and devices, but forget about securing their network as well. But since it’s possible to connect to some wi-fi networks from as much as 100 metres away from the modem – and that you’ve got no way of knowing whether you’re being attacked until it’s too late – it’s definitely time we considered securing wi-fi as one of the ‘basics’.

From a financial perspective, the risks are huge. A hack on a system could lead to loss of personal data, such as bank statements and credit card numbers. And the potential for damage is enormous: losses from cybercrime and scams reported to the ACCC totalled $63 million in 2010 and in 2009 around 4.4 million Aussies were affected by identity crime, with 1.2 million having their bank account illegally accessed.

In basic terms, not having your network secure is like leaving your car in the city with the doors locked and the windows down and expecting it not to get stolen. If you want to make sure your personal information is as secure as possible, you need to lock up your network as carefully as you would your car!

The best way to protect yourself is to use a ‘layer’ system to increase your defences – by maintaining tight security across all devices and accounts rather than relying on a single layer of protection to keep thieves at bay. And the easiest place to start is with these simple tips:

Up your security
The Stay Smart Online website gives simple instructions for securing wi-fi networks, and recommends turning on automatic security updates for your software and setting it to scan regularly. And always remember to check security settings on websites before handing over personal information and protect credit card exposure by having a low-limit card that you only use for online shopping. Better yet, make it debit card and only sweep funds into it when you know you need them.

Get back to basics
Having passwords on all your devices isn’t much good if they’re easy to guess! Hackers are skilled at retrieving bits of personal information, and if they know simple facts about you it’s easy to crack more obvious passwords. Choose strong passwords that use a combination of letters, numbers and symbols and change them at least every three months, using different passwords for different accounts, computers and devices. From a non-electronic point, shred all paperwork containing personal details, lock your letterbox and keep a close eye on your accounts.

Stop sharing
Social networking profiles can be an identity theft bonanza – while they’re a great way to communicate with friends and family, they can also provide enough info for someone to pretend they’re you. Be cautious about sharing information on social networking sites, and adjust your privacy settings to the highest level – it won’t impact your ability to use sites, but it will make it easier to protect yourself.

A stolen identity can become a serious problem – the losses can be huge and proving that someone else has been accessing your account or taking out loans can be tough. That’s why it’s important to take every precaution with your information. So secure those networks and leave identity thieves out in the cold!

Invasion of the identity snatchers

Imagine somebody stealing your life – wearing your clothes, sleeping in your bed, doing your job. Your friends and family might not even notice you’re gone … not until it happens to them too. That’s the plot of the 1978 film 'The Invasion of the Body Snatchers', where aliens plot to take over the world by growing copies of human beings and replacing them one by one. Creepy, right? While we’re pretty sure the world isn’t being taken over by pod people, something a lot like this happens regularly in the financial world – identity theft.

Being a victim of identity theft means that somebody has enough of your personal information to convince financial institutions that they are you – which means they can tally up enormous debts in your name. Fortunately, there are ways to protect yourself and ensure that your identity remains yours. 



Identity theft is when someone takes your personal details and uses that information to apply for loans and credit in your name, which you’ll be held accountable for unless you can prove that the debt isn’t yours – and that can be difficult, since the thieves had enough proof that they were you to get the credit in the first place. There are several different ways criminals can get hold of your personal information – Veda Advantage’s Identity Crimes Report from 2009 revealed that over 1.5 million Australians had credit cards illegally skimmed, and 1.2 million had bank accounts illegally accessed or personal mail stolen. What’s more, about 55 per cent of Australians had lost credit cards, keycards and drivers licences in the last three years, and 24 per cent of people had lost their personal information more than twice. The worrying part is that your stolen details won’t necessarily be used immediately, with the Australian Police believing that criminals are ‘harvesting’ information, slowly building up profiles of individuals based on stolen information for use later.

 This is definitely an instance where prevention is better than cure, and the good news is that it’s pretty simple to do.

Let’s take a look at some easy ways to protect your credit identity:
•   Report identity theft immediately – a lost or stolen wallet can contain more than enough information for thieves to start creating a fake ‘you’.
•   Change your PINs and passwords regularly to protect credit cards and online banking details.
•   Buy a shredder and destroy all documents that contain personal information when you no longer need them – even seemingly innocent mail that’s addressed to you (such as utilities bills) can be used to provide proof of ID.
•   Keep a record of when regular bills are due, and contact providers if your bills don’t arrive on time – stolen account details can provide thieves with a lot of personal information about you.
•   Never, ever provide your bank account or credit card details to callers or emailers who claim they are from your bank, credit or utilities providers. Take a ‘better safe than sorry’ approach and contact these organisations yourself to confirm the validity of these calls before handing information over.
•   Never store your PINs or passwords on your mobile phone, and don’t keep them in your wallet either.
•   When you’re shopping online, check the security of the website you’re accessing.

These are just a few of the things you can do to protect yourself, but unfortunately, there’s no ‘perfect’ defence against having your identity stolen – the best you can do is be alert, be careful and ensure that you protect credit and personal details as much as possible. Part of this process is ensuring that you keep a close eye on your personal credit reference, which is like your financial ‘report card’, kept by Australia’s credit report agency, Veda Advantage.

The thought of someone having enough information to pretend that they’re you is something we think everyone should be concerned about, but there are steps you can take to keep your personal information safe, and by keeping an eye on your credit reference as well, you’ll be able to limit the amount of damage identity thieves can do. And now that’s out of the way, the only thing left to worry about is whether the pod people really are coming to take over the world!