LIFESTYLE NEWS - If you’ve ordered something online over the past month, you’re part of a rapidly growing section of the population that relies on devices to make purchases.
Whether you’re topping up milk that’s run out or sending flowers to a friend for their birthday, it’s undeniable that being able to use your personal information online can make life easier for you.
Unfortunately, this comes with pitfalls — primarily in identity theft. However, you may be asking yourself: “What is identity theft?” or “What is identity theft insurance?” Well, we have the answers for you in this article.
What is identity theft and how does it happen?
In the past, people used their ID books or driver’s licences to prove their identity. They’d also write cheques or visit the bank to withdraw money and make payments.
Those days are long gone. We now upload verifying documents online to prove who we are, make payments and purchases using smartphone apps and order items online using our bank card information.
This is where identity theft comes in. Identity theft is accessing someone’s personal or financial information such as their ID number, password or phone number to commit fraud.
South Africans started shopping online in earnest during the Covid-19 pandemic, and this habit has remained. The Consumer Goods Council of South Africa’s 2021/22 report reveals that local online sales increased by over 66% to more than R30 billion between 2019 and 2020. At the same time, Transunion reports that we’re experiencing an almost 5% increase in online fraud activity every year — higher than the global overage.
If you live in South Africa, identity theft can take place in the following ways:
- Phishing/online scams: Fake websites or emails impersonating legitimate businesses or people requesting you to verify your details.
- Malware: Downloadable PC or smartphone applications that appear genuine but allow criminals to access and record your device’s stored information.
- Data Breaches: When professional hackers access a bank, university or public institution’s stored customer data for ransom purposes.
- Hacking: Accessing someone’s information to perform fraudulent activities under their name
- Extortion: Threatening the release of vulnerable images or information in exchange for a ransom.
How can I protect myself against identity theft?
There are many ways you can protect yourself from falling victim to identity theft:
- Report the theft of personal items containing identifying information to the police and cancel or freeze any cards/accounts immediately
- Enable notifications for real-time SMSs or emails on every purchase
- Monitor your monthly or annual statements and reports for irregularities
- Carry cash on your person when making minor purchases or visiting busy events such as concerts or festivals
- Avoid sharing images with identifying information or your location on social media or censor it accordingly
- Avoid sharing confidential information via SMS, email or phone call
- Enable two-factor authentication on all transactions or accounts
- Disable one-tap purchasing on your bank or credit card
- Opt out of receiving print statements or document copies in favour of email ones. If you do receive print copies, keep them in a safe place or destroy them before disposal.
- If you struggle with remembering passwords and tend to use the same password for every account, use a unique password generator and password storage software to create and encrypt your passwords
- Avoid logging into personal accounts if using public Wi-Fi such as the kind available at shopping malls
What does identity theft insurance cover?
You can take steps to protect yourself from identity theft, but it can still take place despite your best efforts. When this happens, having identity theft insurance can protect you by affording you access to the following benefits:
- Drafting letters, making calls and sending documents via emails to relevant parties on your behalf
- Access to and monitoring of credit reports
- Coverage for notary, attorney, legal and fraud-related loan reapplication fees
- Coverage for costs relating to childcare and loss of earnings
- Professional identity theft assistance
- Litigation assistance including physical representation
Keeping up with your premiums and operating following your finance provider’s terms and conditions will ensure you get quick and efficient assistance. A failure to do so can result in your claim being rejected or taking longer than usual to process.
