Online identity theft escalates
Mon 12 May 2008
Megan Mackander, Journalism
Precious identities being stolen and sold via the internet by cyberterrorists preying on the technologically weak has prompted governments worldwide to re-instil peoples’ faith in the web.
The Australian Federal Government proposed new laws in March 2008 to allow victims of identity theft to reclaim credit history quickly.
This was just one of the initiatives of governments throughout the world to curb identity theft, The Sydney Morning Herald reported.
A report titled 'Cybercafes, Cybercrime Detection and Prevention', published by the Library of Hi-Tech News, defined cybercrime as the use of computers and internet to further illegal ends such as identity theft, one of the most common for
ms of cybercrime.
Australian Securities and Investment Commission (ASIC) said identity theft was a case of someone obtaining and using another’s personal data in a way involving fraud or deception, typically for economic gain.
This included credit card details, dates of birth, bank account details or drivers’ licence.
A Symantec Enterprise Security report published in April 2008 titled 'Symantec Global Internet Security Threat Report: Trends for July- December 2007' provided a comprehensive insight into the global threat of identity theft.
The report identified the US as the top country for internet crime, accounting for 31 per cent of malicious activity.
The US also had the highest number of identify theft cases, 24 per cent of worldwide activity.
The New York Times reported a major identity theft case involving a 24-year-old Moscow man who scoured the internet for personal information of the Forbes 400 List of the top richest Americans, robbing their financial accounts.
Although in this instance personal information was used for financial gain, stolen identities were often sold on the underground economy servers (black market) for as little as 40 cents for credit card details and $A1 for complete identities.
Social networking sites were the most convenient avenue for cyberterrorists, luring oblivious victims to disclose personal details to phishing hosts or fake websites.
Social networking sites accounted for 90 per cent of phishing incidents reported in 2007.
Symantec Australia’s managing director Craig Scroggie told The Australian “(users of these) websites are putting up a large amount of confidential information that is being used for fraudulent activity and financial gain".
With 45 billion page views in July alone, Myspace.com was a social-networking site which had been embraced by users.
Fortune Magazine, in partnership with CNN, argued Myspace was a revolutionary concept that connected people together.
However, ASIC warned users to exercise more caution when using social networking sites.
Rather than attempting to compromise several smaller sites, it was easier for cyberterrorists to target a specific popular site such as Myspace to reach a larger number of users as its users were left misinformed of the dangers of disclosing information.
The older generation of internet users (over 50) were more wary of cybercrime, with fears especially heavy on the minds of British citizens.
The BBC reported on a survey that indicated British senior citizens’ single biggest factor stopping them from going online was fraud.
In a separate article, The BBC reported that almost 80 per cent of Londoners feared they would be a victim of identify theft.
Online banking was one such web service that was suffering from increasing identity theft.
The IT Week reported fears of phishing and identity theft were increasing, putting many people off online banking, with 43 per cent of respondents to its Consumer Online Fraud Survey stating online threats had either stopped them from signing up or continuing with the service.
However, much like the persistent and loyal users of social networking sites, some users over 50 continued to use online banking services as a matter of convenience.
David Porter, a fraud protection specialist, told The IT Week that “there is always a trade-off between security and convenience".
As a relatively new medium in terms of mass media history, governments only recently introduced legislation to protect victims of cybercrime.
In 2002, Computerworld Security reported that cybercrime and cyber-terrorism were the FBI’s number three priority, behind counter-terrorism and counter-intelligence.
As the most tainted country in terms of identity theft, the US implemented several laws over the past 10 years.
For example, in 2006 the bill H.B 1347 was introduced in Colorado, creating the Identity Theft and Financial Fraud Board, The Crime Control Digest reported.
H.B 1347 protected citizens against the unlawful possession and theft of personal information and the sale or possession of a financial transaction device, The Crime Control Digest reported.
Australia followed the US lead, implementing a stringent set of laws against identity theft, beginning with amendments to the Criminal Law Consolidation Act 1935 in 2004.
The South Australian (SA) parliament led the way, becoming the first state to re-assess existing laws.
The parliament introduced legislation relating to identity theft in 2004, specifically labelling the person whose identity had been stolen as the ‘victim’, the South Australian Office of Consumer and Business Affairs reported.
To reinforce Australia’s policies towards identity theft ASIC, in partnership with the Australian Bankers’ Association (ABA) and the Australian High Tech Crime Centre, developed a website to inform citizens how to avoid being targeted.
But, with the global scale of infinite information the internet provides, legalisation alone would not solve identity theft.
The Cybercafes, Cybercrimes Detection and Prevention, report outlined additional factors which could make cyberterrorists difficult to detect, including fast operational speed of computer hardware and reluctance of businesses to report identity theft.
Attorney for the Eastern District of Virginia Paul McNutly agreed, telling Computerworld Security it was “important for companies to come forward when they are the victims of crime, without this…cyberspace could become an economic blight…where people are afraid to go".
Penalties and laws in each nation were varied, making prosecution of identity theft difficult.
An international cybercrime law was necessary to truly expose cyber terrorists and re-gain people’s trust in the internet as a valuable source of information.
Sources:
Anonymous, 2007, “Seniors’: victims of choice”, Maclean’s Magazine, Vol. 120, Iss.41, PP. 40, retrieved on 16 April 2008, from Proquest 5000 Database, ID 1369381971.
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