Dealing with the double: Here's what to do in case of identity theft

With 19 people falling prey to identity theft every minute, act swiftly to minimise damage

Sixty-nine-year-old Amitabh Kumar from Chhattisgarh got a shock when he received an income-tax notice saying he had hidden a transaction of ~70 lakh in his FY2011-12 tax filing. “I had not done this transaction, and the bank account connected to my demat account hardly had any money in it. My broker said this transaction took place through my account, and gains were transferred to some third-party account. An inquiry is going on,” says an exasperated Kumar (name changed on request). He has been told that someone used his PAN and demat account to buy and sell shares and pocket a neat profit. 

Cases of identity theft are becoming common. According to Securitas, a security solutions company, about 19 people fall victim to identity theft every minute in India. Cyber-expert Ritesh Bhatia says, “Identity theft is the deliberate and unauthorised use of someone else’s personal information to pretend to be you to commit fraud or gain financial benefits. Examples of online identity theft include creating social media accounts, cloning of credit and debit cards, and obtaining sim cards in others’ names.” In short, someone fraudulently takes your identity, steals your data, or documents, and uses them to make financial gains posing as you. 

Some common methods used in online identity theft are phishing, hacking, skimming, infecting devices with malware, etc. When it comes to financial thefts, the fraudster can steal the money lying in your savings account. The other way is to take your money via your credit accounts like a credit card or loan.

How to know you are a victim: Sathya Kalyanasundaram, country head and managing director, Experian India, says, “There are many ways in which fraudsters commit identity fraud, so it’s important to be vigilant.” When it comes to money in the savings accounts, it’s best not to ignore your bank SMS alerts and email alerts. That way, you will be able to track the activity on the savings account in real-time. Don’t only check for significant amounts; even notice if there are any debits of small amounts in bank statements. If you see any unknown charges, big or small, inform the bank immediately. When it comes to credit cards, check for unfamiliar purchases in your card statement. If you find any, notify the bank and block the card immediately. 

As far as credit accounts like credit cards and loans go, all inquiries and activities are mentioned in the credit report. Sujata Ahlawat, Vice President and Head, Direct to Consumer (DTC) Interactive division at TransUnion CIBIL, says, “Look at your credit report. Check for unexplained entries in it, or any inquiries you haven’t made.” In short, check for any mismatch or discrepancy in data. For instance, was a change of address request made? Or has a credit card been issued in your name you don’t remember? Or has there been an attempt to avail of a consumer loan? 

Watch out for any statements or bills for services you have not availed of. If you get an unexpected verification call from a bank or a service provider, that’s a clear warning. At times, fraudsters too pose as bankers or service providers, so it is best to call the bank’s call centre yourself or visit the bank instead of sharing sensitive details in an incoming call. Sensitive information means your customer ID, IPIN, credit/debit card numbers, expiry date, OTPs, Aadhaar, PAN, CVV numbers, etc. 

What to do: If your credit report shows some credit activity that you do not recognise, raise a dispute. Ahlawat says, “You can raise a dispute on our portal itself. We will raise the issue with the bank on the consumer’s behalf. Approach the bank too.” The same goes for Experian. The bank will either confirm that the information given to the credit bureau is accurate, in which case the bureau informs the consumer about it. Or, the bank rectifies the data and tells the bureau. The bureau informs the customer. Always keep all parties updated about the dispute. Also, report to the cyber police. 

Prevention is better than cure: There are several things you can do to safeguard yourself. Bhatia says, “Hide your PIN when entering it on POS devices and at ATMs. Log out from all accounts once you have finished using them. Even when you use a laptop or PC, lock your screen when not in use. Never store digital copies of identity proofs at multiple places. Use solid passwords with multi-factor authentication.” Make it a personal policy to always limit the sharing of personal information. Never share sensitive information with anyone over phone or email. If your mobile number has stopped working for longer than usual, contact your mobile operator to know the reason. No service on your mobile for a long time could be a potential SIM swap incident. Many banks offer complementary card protection services. This service comes with a fraud protect feature, where cards are protected from fraudulent use arising from card loss. Your protection begins seven days before your loss report and extends to any period after it.
 

You can also buy a cyber insurance policy, which offers protection against a range of online offences. Take cyber-security seriously, as fixing things once you become a victim is easier said than done when fighting the invisible enemy.  

Step by step guide in case of identity theft
 

• Check all your accounts to see if multiple accounts have been compromised
• Try to identify the source. Example: 
• A new app/software you downloaded on mobile/laptop. Or your recent credit card usage online
• Change all your passwords immediately. Opt for alphanumeric ones
• Contact your banks, lenders, and insurance companies immediately 
• Request banks to close all affected accounts and open new ones 
• Contact the credit bureau and raise a dispute
• Inform the nearest police station or cyber cell 
• Check your computer and mobile for viruses and install anti-virus software