Identity fraud is a major risk for online users, with the possibility of financial, reputational and legal consequences. This blog delves into what businesses are doing to ensure online safety, key steps for staying out of harm's way, and the types of identity fraud that exist today.
July 5th, 2022
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The Tinder Swindler on Netflix recently took the world by storm. In the show, Simon Leviev posed as a wealthy, jet-setting diamond mogul and wooed women that he met online. He then successfully conned them out of around $10 million in a complex Ponzi scheme.
However, although The Tinder Swindler is an extreme example of identity fraud, it does show us how powerful stealing someone’s identity can be. With this in mind, and to help you keep your personal information and your business safe, we’ve put together this guide to identity fraud prevention. As well as outlining the key definitions and how to prevent identity fraud, we’ll also show you how to stop your identity from being stolen from social media profiles.
Identity fraud is a serious crime. The Metropolitan Police say that:
“Identity fraud, or ‘ID theft’, involves the use of a person’s stolen details to commit crime.” They add that, due to the nature of the crime, “many victims never find out exactly how someone got hold of their details, and clearing things up afterward can be costly and stressful.”
Although identity fraud does often involve living people who have their lives turned upside down, criminals don’t always use the identity of a living person. Often, criminals will also assume the identity of a deceased individual or will create a brand new identity for someone who doesn’t actually exist.
It’s also important to remember that although identity fraud does affect individuals and can have lasting consequences, it also affects businesses around the world. This is because, if a business allows someone to make a fraudulent transaction, then it may face significant fines and repercussions for not meeting know your customer (KYC) regulations.
There are a number of ways that customers can keep their information safe. Steps you can take for identity fraud prevention purposes include:
Businesses have a responsibility to prevent fraudsters from accessing their services. This is particularly true of financial gatekeepers, such as accountants, bankers, and lawyers.
Thankfully, identity verification software can make that process swift, efficient, and accurate. With the help of our software, you can:
Although some people use the terms interchangeably, ‘identity theft’ and ‘identity fraud’ are different things and it’s important to distinguish between them.
While identity theft is the act of stealing personal, private, or financial information, identity fraud is the act of using this stolen information.
Sadly, identity fraud is an increasingly common crime and criminals are continually finding new ways of using stolen information. However, the most common examples of identity fraud occur when fraudsters use someone’s identity details to:
Remember, identity theft is the act of stealing someone’s personal or financial information. Criminals commit identity theft by:
By regularly checking your financial records, you can stop fraudsters in their tracks. If you’ve become a victim of identity fraud, you’ll likely notice that:
In The Tinder Swindler, Shimon Hayut presented himself as the son of Russian-Israeli diamond mogul Lev Leviev. In doing so, he used Tinder to contact women as Simon Leviev. He then tricked them into lending him money that he never repaid.
Of course, although The Tinder Swindler is the most recent (and most lavish) example of identity fraud, this is a problem that’s been associated with social media for a long time. In fact, identity fraud used to commonly be associated with the film and TV show Catfish, which has spanned almost 200 episodes. In the show, many people found that people they’d been corresponding with on dating apps and social media were entirely different from the people they thought they were.
Although social media provides us with numerous networking and socializing benefits, we need to be wary about the information we post online. After all, criminals will attempt to use the public information we post to steal our identities. To prevent your identity from being stolen from your social media profiles, you should:
Sadly, identity fraud is more common than we’d like, and the above identity fraud prevention steps do not guarantee that you’ll be able to keep your identity safe. After all, our 2021 Identity Fraud Report revealed that:
If your business would like to know more about how to prevent identity fraud and the steps it can take to stop bad actors from accessing its services, then book a consultation with Veriff today. We’ll explain exactly how we can help you meet compliance and KYC obligations.
We are thrilled to unveil Veriff’s new brand identity, reflecting our next stage of growth and our mission to bring real safety, protection and transparency to the internet. Here’s more on why we did it.
At present, financial institutions such as banks are required to investigate their clients and their sources of wealth or funds. But, until now, many other financial gatekeepers have been exempted from so-called ‘due diligence rules’.
If new legislation passes, it will mean that all NFT marketplaces will have to assess the risk of illicit finance flowing through their systems and carry out identity checks on new customers and suspicious transactions.