Profile Building - How Fraudsters Can Steal your Life

Personal information has now become a prized article of trade amongst criminal circles, used to commit more significant types of identity fraud, a national credit repairer warns.

Director of MyCRA Credit Repairs, Graham Doessel says people need to be aware of the ways their personal details could be exposed to criminals around the world, whom he says are collecting this data in order to take out often significant amount of credit in their name. 

"If criminals gain access to information like names, dates of birth, addresses they can build a profile with enough information to access duplicate identity documents - enabling them to take out loans, credit cards, even mortgage properties in their victim's name."

"They are getting this information via social networking or through hacking into company data. They can also get it through direct emailing and viruses, card skimming or even rifling through people's rubbish bins. Often there is a vast network of criminals involved," he says.

This warning comes as Superintendant Brian Hay from the Queensland Fraud Squad told Channel 7's Sunrise Program on Tuesday that criminals were targeting young Facebook users who seemed to have a host of personal information freely available on the website.

Supt Hay says criminals had been known to be storing the personal information of children around the world in databases to be used when they turn 18 and are able to take out credit.

"We know that the crooks have been data warehousing identity information, we know that they've been building search engines to profile and build identities," he told Sunrise.

"We need to tell our children if you surrender your soul, if you surrender your identity to the internet it could come back to bite you in a very savage way years down the track," he says.

Mr Doessel says his company helps people clear adverse listings from their credit file which they believe should not be there. He says when a client experiences identity theft which leads to credit being taken out in their name, they are left financially crippled.

"Basically the victim ends up with defaults on their credit file which unfortunately means they are black listed from credit for 5 years. These victims can't borrow for anything - they can't even take out a mobile phone plan," he says.

Identity theft and subsequent fraud has become rampant worldwide. A survey commissioned by the Attorney-General's office in July showed 1 in 6 Australians had been or knew someone who had been the victim of identity theft or misuse.  

The survey also revealed that the majority of identity theft or misuse occurred over the Internet (58 per cent), or through the loss of a credit or debit card (30 per cent).  Stolen identify information was primarily used to purchase goods or services (55 per cent) or to obtain finance, credit or a loan (26 per cent).

The government's SCAMwatch website has some ways people can protect their personal information. This includes:

-NEVER send money or give personal details to people you don't know and trust.

-If you receive a call from your bank or any other organisation, don't provide your personal details-instead ask for their name and a contact number. Check with the organisation in question before calling back. NEVER rely on a number provided in an email or click on the provided link-instead find the contact number through an internet search or check the back of your ATM card.

-If you receive a request from a friend or family member stranded while on holiday asking you to transfer money to them, contact them by phone or alternative contact to verify the request is genuine before sending any money or providing personal details.

-Regularly check your credit card and/or bank statements to ensure that suspicious transactions are detected.

-Shred all documents containing personal information, such as credit card applications and bank statements.

-Log directly onto websites you are interested in rather than clicking on links provided in an email.

-Always get independent advice if you are unsure whether an offer or request is genuine. -Be suspicious if anyone asks you for your personal information. Scammers will use convincing stories to explain why you need to give them money or your personal details.

Mr Doessel says another crucial thing to remember is for people to protect their information on social networking sites.

"If people must be social networking members - they need to be very careful. Privacy settings need to be maintained and checked. But they should also think about what information they are posting - could someone use that information to build a profile on them? Also, beware strange friend 'requests' - people should only add friends they know," he says.

He says people should also be regularly checking their credit file for any signs it has been misused.

Australians can check their credit file by obtaining a written report for free every 12 months, from each credit reporting agency. But if they are suspicious of or vulnerable to fraud they can also for a fee obtain a credit report more often.

Mr Doessel says if there are any discrepancies of credit or adverse listings that should not be there they should act immediately to notify Police.

"This crime is not very widely reported. But it is only through people reporting it that any real statistics get collated. Likewise, if people want to try and repair their credit rating, the first thing I tell them is to make sure they have a Police report," he says.

For more information on restoring a credit rating following identity theft, contact MyCRA Credit Repairs on 1300 667 218 www.mycra.com.au.