subject: Current Threats from Electronic Identity Theft that Exist in the U.K [print this page] Current Threats from Electronic Identity Theft that Exist in the U.K
Electronic identity theft is one of the fast growing crimes in U.K. and in particular in London. Identity theft is a form of deception where someone uses the identity of another person as if it were his/her own identity (KPMG 2009). An individual's identity can be stolen typically in order to assist the thief (the person who assumes another person's identity), to access resources owned by the person whose real identity has been stolen or obtain credit/money and other benefits that belong to that individual. Electronic identity theft involves use of electronic medium especially the web to obtain other person's means of identity. This can also be referred to as phishing. It involves attempts to acquire other peoples' information such as usernames and passwords to bank accounts and credit card details through using concealed electronic communication so as to appear as trustworthy electronic communication entities (Insight Consulting 2010).
How big is the Threat?
Electronic identity theft has become a big threat in U.K. due to presence of many online assisted means of doing things such as conducting transaction, online auctioning, online buying and selling, and social networking. According to a White Paper by Insight Consult, "identity theft has enveloped the online world as a result of; increasing number of consumers surfing or shopping on-line, more online sources of personal information often derived from the Electoral Register, and increased use of credit and information exchanged with banks and retailers" (Insight Consulting 2010). Insight Consulting says that electronic identity theft in the U.K. cost the country an approximate value of 1.3 billion pounds per annum. In the year 2009, electronic identity theft in U.K. alone was reported to have risen with a 32% increase from 80,000 victims in 2008 to 109,000 victims in 2009 where 85,000 of the victims reported impersonation fraud while 24,000 victims reported identity takeovers (Insight Consulting 2010). Electronic identity theft is also present in the medical field too where according to Javelin Strategy and Research, there was a 7% increase in personal medical data theft in 2009 from 3% in 2008 (Insight Consulting 2010). Over a half of all hospitals and clinics in U.K. reported that they experience cases of theft of electronic medical records for their patients every day.
Theft of personal identity like in the case of hospitals and clinics is conducted by employees and professionals who work in these areas. They hack into the hospital's medical database and gain access to patients' private information which they then sell it to unscrupulous individuals or they use the information themselves. The risks involved here are very high as they can even result into death of an individual (PopularArticles.com 2010).
Stolen medical identity can be used to create fake electronic medical records in the name of another person and then the information can be used to obtain fake medical claims, buy prescription drugs or get free medical treatment in another person's name. There are cases where theft of personal medical records has resulted into wrong diagnosis leading to death due to presence of false information about allergies, blood type, medical history and other inaccurate information (PopularArticles.com 2010).
Financial crime of electronic identity theft is yet another common crime in U.K. This form of electronic identity theft is usually used by criminal and terrorist gangs (OECD Observer 2008). Terrorists and international criminals use fake identity which are developed from stolen personal information such as private documents for example bank statements, login identifications for online business dealings and electronic systems which hold personal information such as personal computers and laptops to accumulate large amounts of money. They then use the money to undertake criminal activities such as drug trafficking, smuggling people and firearms, and terrorism.
According to KPMG, tax and audit advisory, "...APACS (the UK payment association) has reported a substantial rise in card-not-present' fraud as the effectiveness of ship-and pin technology has forced fraudsters onto the internet..." (KPMG 2009). Such form of electronic identity theft has different levels of risk affecting both the person whose identity has been stolen and the reputation of financial institutions such as banks.
Individuals whose personal identity has been stolen and used to undertake criminal activities such as terrorism may find themselves in the wrong arm of the law and might end up suffering dire consequences if they are held accountable of the actions of their perpetrators. Organizations and individuals whose identity has been stole and used to conduct criminal activities also face great threats as they undergo adverse effects and losses (KPMG 2009). Another threat current from electronic identity theft is loss of online privacy. Where the internet has been a great source of easing up business transaction, people are slowly losing confidence in use of internet to undertake business transactions and even social networking with others.
