Account and Identity Theft

Account Hijacking & Identity Theft - How to Recognize and Prevent it

Guarding against account hijacking

PROTECTING YOURSELF

Step 1: Understand the threat

• Hijacking by phishing deceives customers into providing their user names, passwords, and account numbers via deceptive e-mails, fake websites, or both. The classic phishing attack involves a deceptive e-Mail that purports to be from a legitimate financial institution. The e-mail typically tells the customer that there is some sort of problem with the customer’s account, and instructs the recipient to click on the included hyperlink to “fix” the problem. In reality, the fake website is simply collecting customer usernames and passwords in order to hijack accounts.
• Hijacking by spyware works by inserting malicious software, often referred to as “spyware,” on a person’s personal computer. Spyware can be loaded when a user opens a seemingly innocuous e-mail attachment or clicks on a pop-up advertisement. The spyware collects selected information (e.g., user names, passwords, and account numbers) and forwards that information to the fraudster.

Quick facts about account hijacking

• An estimated 2 million people are hit with account hijacking each year; most say it was from a phishing email.
  
• Overall account fraud totals more than $2.4 billion annually, $1,200 per victim.
  
• People who monitor their accounts online (rather than just with mailed statements) can detect hijacking earlier. In one report, victims’ losses were one eighth of those who detected the crime via paper statements due to early detection.

Step 2: Fortify your system

• Password protection — If your password is easy for you to remember, the chances are good it is also easy for an Internet hacker to figure out. Experts advise a combination of letters and numbers…and avoiding pet names, your home address, and similar easy-to crack codes.
  
• Anti-virus software — Your computer’s anti-virus software is like a vaccine—it works at first, but you need to keep it up-to-date to guard against new strains.
  
• Anti-spyware — Anti-programs are readily available, and every computer connected to the Internet should have the software installed…and updated regularly.
  
• “Phishing awareness” — If you receive an unexpected email, or one that you consider suspicious, delete it. Remember: your bank will never email you and ask you to go to another site to “verify information.”

Step 3: Vigilance Pays

• Check your statements regularly. If something seems irregular, contact your banker to discuss it. A recent study showed that customers who monitor their accounts online discover problems sooner.
• Check your credit report at least annually. You are entitled to one free credit report annually from each of the three major credit bureaus. If a hijacker is misusing your credit, clues are likely to show up here. For a free report: www.annualcreditreport.com.