Social Networkers at Risk of Identity Theft

Wednesday 8th August, 2007

Consumers should think twice before sharing personal information online

Users of social networking sites such as MySpace and Facebook are leaving themselves open to the possibility of identity theft by giving away too much personal information, according to leading credit reporting agency Dun & Bradstreet (D&B).

Research from the latest Internet Crime Report (Internet Crime Complaint Centre) reveals that internet fraud complaints are increasing, with the total dollar loss of all referred cases in 2006 reaching $198.44 million. Research indicates that only 1 in 7 incidences of internet fraud are brought to the attention of enforcement or regulatory agencies, suggesting that the dollar value of internet fraud is likely to be significantly higher. Dun & Bradstreet believes the popularity of social networking sites and the ability they provide to connect with other likeminded individuals comes with a catch: consumers are asked to submit a significant amount of personal data. Requested information on social networking sites usually includes date of birth, location, email address, job and marital status. This information can be used by fraudsters to steal a person’s identity and obtain credit in their name.

Social networking sites such as MySpace and Facebook have seen a rapid increase in popularity in recent months. Estimates indicate that MySpace and Facebook have reached worldwide user levels of 60 million and 31 million respectively.

According to John Scott, D&B New Zealand General Manager, the increasing popularity of social networking sites could have dire consequences if users are not savvy about restricting the personal information they make available. “People would usually think twice about divulging personal information in an online environment but concerns about privacy and security seem to be forgotten when using social networking sites,” said Mr Scott.

“Consumers don’t seem to realise the significance of the information they are putting on the web or who can access it.

“We don’t want to discourage consumers from using these sites – we want to ensure that when they do, they are aware of the risks associated with their actions.” Current estimates suggest that the cost of identity theft is increasing worldwide, with indications that the cost in Australia is close to $3 billion per annum. D&B warns that it will likely escalate even further with the rapid increase in users of social networking sites.

“The costs of identity theft are alarming and the implications go far beyond the mere financial impacts,” said Mr Scott.

“Many victims suffer detrimental impacts on their reputation and may even be arrested or detained for actions that they played no part in. Also, efforts to correct the inaccuracies associated with identity theft often take many years.” D&B warns that people should think carefully about the consequences of identity theft before they enter their personal details into social networking sites.

To reduce the risk of identity fraud, D&B advises consumers to follow a few simple rules:

1. use the privacy settings that are available on social networking sites – this will prevent people other than close friends from viewing personal information

2. do not include common verification information such as date of birth or mothers maiden name

3. think carefully about password selection – birthdates and pets names are very common and easy to crack.

ENDS

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