While people are getting better at taking steps to protect their personal information online, the volume of illegally traded information online is soaring. That is according to the credit checking agency Experian. The firm claims more than 110 million pieces of data were bought and sold by criminals so far in 2014.
The study was commissioned by Experian using web monitoring – which monitors the web to help people detect ID theft, loss or disclosure of vital personal and financial information – and showed an increase of 40pc from last year alone and 300pc on the total amount traded in 2012.
Most if not near all, 96.5pc of the illegally traded data consists of login credentials – user name and password combinations – as online accounts can give identity fraudsters access to information such as where you bank or shop, linked accounts which may have passwords saved automatically and all the personal information you may have shared over email. Compromised email accounts also contain personal contact lists that in turn could be targeted by fraudsters.
The remaining data was mainly passport details and payment card details such as card number, expiry date and the security code (three-digit CVV2 number) from the back of the card. Hence the importance of protecting online accounts the company says.
Britain is becoming more web-savvy. Separate research commissioned by Experian among 2000 adults has found that:
• The average Briton now has 19 online accounts (27pc lower than 2012)
• 25-34 year olds are the most prolific with 28 accounts each (30pc lower than 2012)
• Just one in 20 sign up to six or more new online accounts each month, compared to one in five in 2012.
People are also closing the accounts that they don’t use, leaving less opportunity for criminals to exploit their online identity:
• This year, 18pc claim to have inactive social media accounts left open, down from 26pc in 2012
• 10pc have inactive e-mail accounts open (down from 18pc)
• 10pc have online retail accounts that are no longer used (21pc in 2012).
But despite some improvements, there are still signs of poor online password behaviour:
• one in ten Britons use an average of just seven passwords to keep their information safe
• One in 20 use the same log in details for all of their online accounts
• one in ten Britons never change their passwords.
Peter Turner, Managing Director with Experian Consumer Services, UK and Ireland said: “These results are startling and combined with the knowledge that we have also seen a 37pc increase in those receiving help from the Experian Victims of Fraud team in the last year, it is clear that identity theft and resulting fraud is a real concern. Given the number of online services that we all use each and every day, it is so important that we are all vigilant in protecting our information online. While this may seem like a mammoth task, know that companies are using ever more sophisticated technologies to detect and prevent fraud and if we all implement even the basics of online identity protection, we will together make it far more difficult for online criminals to succeed.
“Remember fraudsters operate to make money, and so if your personal information has been compromised, one of the first places that you can spot potential fraud is by seeing unfamiliar credit applications being made in your name on your credit report. Prevention is better than cure when it comes to identity fraud so keep a very close eye on your credit report and if you see anything suspicious take immediate steps to investigate and resolve before you are negatively impacted.”
The firm suggests following basics of online identity protection:
Online passwords:
• Use secure unique passwords for as many online accounts as possible, at the very least one for each type of service provider such as financial services, retail services, email and social.
• Passwords should always be a series of letters, for example the first from each word in a sentence to help you remember, as well as a number.
• Change your online passwords every couple of months – at least!
Emails:
• Phishing emails are getting ever more sophisticated, so don’t be tempted to click on links or attachments received in emails from people you don’t know.
• If you do click on a link and are redirected to a website asking for your account information, do not enter any information without at the very least checking that the website address at the top of the page is that of the real service provider.
• If you have any doubts, contact the company in question and a quick internet search about the email content can also quickly highlight current scams.
When on the move:
• Always passcode or gesture lock your mobile device and be aware of the information stored on your device for example in emails and apps that are not password protected. It could be a gold mine for fraudsters if your device is lost or stolen.
• Open Wi-Fi hotspots that do not require a password are riskier than private networks so don’t access sensitive financial information on an open network
• Keep your antivirus up to date on all your internet connected devices to protect you from malware
And know where your details go:
• Monitor your credit report regularly to ensure everything is accurate paying special attention to credit checks being carried out in your name or new accounts being opened.
Visit www.experian.co.uk.
