What is identity theft?
Identity theft is a serious offence under Article 401 of the Spanish Criminal Code: ‘whoever usurps the identity of another shall be punished with a prison sentence from six months to three years’. As mentioned, this activity has become increasingly common over time, and is currently booming due to the development and enhancement of modern image and voice tools such as Artificial Intelligence. So much so, that in 2022, a new offence was added to the Criminal Code to target online activity.
There are several types of identity theft, some of which have been around for a long time, such as signature forgery or stealing bank details. Others are more recent, such as internet and telephone scams. Generally speaking, this offence tends to affect private individuals, however companies and institutions may also fall victim.
For example, according to data from the Spanish Association of Businesses Against Fraud (AEECF), the industries most affected by fraud are banking (35%) and telecommunications (26%). Furthermore, online fraud represents 62% of all fraud, with another 20% being telephone fraud, meaning 82% of all fraud is not face-to-face.
It’s important to be aware of the different kinds of identity theft and how they can affect you. Never click on suspicious links, and if in doubt about a situation of fraud, go to the police to prevent further consequences from arising.
The most common types of identity theft
Use of ID document
In this case, a stolen ID document is used to carry out transactions in the victim’s name. These tend to be transactions like taking out a loan. Police are uncovering more and more cases of identity theft through the use ID documents, working to dismantle networks that steal wallets and take advantage of stolen ID cards for fraudulent activity, which can result in serious losses for both the businesses and the individuals concerned.
Bank card or bank account theft
Bank details are stolen in order to take money from a bank account. This may involve using a bank card to withdraw money or to make contactless payments for small amounts requiring no PIN, or transferring money from one account to another in cases where all bank information is successfully stolen. It is therefore crucial to block your bank cards and accounts at the slightest suspicion of your information being leaked, and be sure to never share your banking information with anyone.
Identity theft via telephone
This scam is increasingly common thanks to new technology that can imitate any voice recording. The most common way this scam takes place is through false requests for help: the criminals pretend to be a victim with a problem and call you to ask for money or sensitive information. They ask for money to buy a phone because theirs has broken, to top up their sim card, to buy petrol, etc. The amounts are generally low enough for the receiver to pay without question, especially if they believe a loved one is in trouble. The success of these scams is down to the fact they take place on a massive scale: although a small amount of money is asked for in each case, lots of people fall victim at once.
Identity theft via the internet
Another increasingly common form of identity theft is pretending to be other people on social media, in emails or on other online platforms. This type includes phishing, which targets both businesses and private individuals, where attempts are made to gather sensitive data and information through fake links. Fraudsters may also create fake profiles on dating apps or social media to interact with their victims with bad intentions.
Identity theft is becoming more and more sophisticated and affects businesses and citizens alike, having both financial and personal consequences. Adopting good practices in terms of security is key to tackling it. We can and we must protect our digital identity and that of our customers. At Logalty, we’ve designed a set of solutions for identity verification to reduce identity theft and data manipulation.
In fact, according to the Faces of Fraud report by SAS, this type of fraud is one of the main concerns for users. 89% of consumers want businesses to do more to protect them from fraud, and 67% of survey respondents said they would change provider if they fell victim to fraud. This concern has no impact on how much people use digital services: 65% continue to use them, although up to 43% are increasingly cautious about sharing personal data.
At the same time, while preventing fraud is a priority, at Logalty we also help to promote secure and efficient digital interactions in an increasingly connected world through a range of identity solutions: video identification, very-ID identity verification or ID card document validation.
