Identity theft occurs when someone uses another person's personal details illegally in order to create a financial benefit for themselves or others. The true owner of the identity is often left with large debts that were not knowingly incurred, and sometimes with a negative credit history and legal implications as a result. Identity theft can be very time-consuming, frustrating, difficult, and at times expensive, for the victim.

What is identity theft?

Identity theft occurs when someone uses another person's personal details illegally in order to create a financial benefit for themselves or others. The true owner of the identity is often left with large debts that were not knowingly incurred, and sometimes with a negative credit history and legal implications as a result. Identity theft can be very time-consuming, frustrating, difficult, and at times expensive, for the victim.

Identity thieves often use the following methods to obtain personal details of their unwitting victims:

• internet scams and e-mail viruses that can obtain personal data from your home computer;
• theft, such as stealing your wallet, or mail from your letterbox at home, or documents from your home;
• taking discarded documents containing personal details from household garbage, such as discarded bank statements or receipts;
• telephone scams, where unsolicited callers obtain personal information from you.

You may be surprised to know that very little information is required for an experienced identity thief to assume your identity. In some cases all that may be needed is your birth date, or a utility bill with your name and address, or simply your address.

Safety tips

• If you have lost a personal document or card that can identify you, such as a drivers licence, birth certificate or passport – report the loss immediately to the police.
• If your credit card or debit card is lost or stolen, or if you think someone other than you may have conducted a transaction on your card, report it to your bank or financial institution as soon as you suspect something is wrong.
• Keep your tax records, records of bills and purchases and other financial documents in a safe and secure place. If you must throw away any such documents, never throw them away intact – either shred them or tear them up such that personal details cannot be retrieved from them.
• If you have dormant bank accounts that have not been used for some time and that you do not intend to use, consider closing them with your financial institution.
• Consider locking your home letterbox with a padlock.

To learn more

If you'd like to know more about what to look out for and how to protect yourself from identity theft, visit the websites of these organisations:

• Australian Securities & Investments Commission's consumer website, "fido": www.fido.asic.gov.au
• Australian Competition & Consumer Commission website: www.accc.gov.au
• Australian Bankers' Association website: www.bankers.asn.au

Also visit your own bank's website – most major banks have information to help their customers bank safely and securely online.