Internet Vulnerability: Identity Theft, Privacy, and Fraud

Introduction: Risk in the Online World

In today's fast-paced Internet society, consumers face significant risks including the loss of personal identity, loss of privacy, and fraud. With each online transaction, email, blog posting, and online search, consumers open themselves to a variety of criminal actions — often without being aware of the danger. In addition to criminal activities practiced online, there are several legal yet questionable activities carried out by various companies and even the government that can endanger one's privacy and identity (Rheingold, 186). While the Internet certainly introduces serious privacy and identity theft concerns, informed consumers can take steps to protect themselves against such losses.

This paper examines the vulnerability of citizens and consumers in terms of Internet transactions, covering both criminal activities and legitimate yet privacy-endangering practices. It also discusses ways in which consumers can protect themselves. Through this examination, the discussion aims to assist consumers in avoiding the potential problems associated with Internet communications.

Identity Theft and Criminal Activity Online

One major problem related to Internet use is identity theft. According to the U.S. Department of Justice, identity theft encompasses "all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain" (USDOJ, online). Identity theft often involves the theft of bank account numbers, credit card numbers, telephone calling card numbers, and social security numbers, among other identifying data. This theft can result in unauthorized bank withdrawals, fraudulent credit transactions, and even loans, vehicle purchases, and other high-value debts that the victim is unaware are being created. Ultimately, these identity theft incidents result in large out-of-pocket expenses — not only to resolve unauthorized debt, but also in legal fees, fines, late fees, and other associated costs (USDOJ, online).

In the current era, the Internet has become a primary area of concern regarding identity theft. For criminals seeking personal information, the Internet offers abundant opportunity through online shopping portals, stored personal data, online banking platforms, and even chat rooms and other interactive communication channels. Often, unsuspecting consumers provide information directly to criminals without even realizing it.

One technique criminals use involves a form of fraudulent email known as phishing, also called carding or brand spoofing. Phishing uses fake emails that claim to come from legitimate companies and banking institutions — such as Citibank, eBay, PayPal, Best Buy, and others. These messages typically include company logos, standard formatting, and legal disclaimers. They often contain a link to a website and ask the recipient to log in and "confirm" personal information such as account numbers, passwords, and credit card numbers. However, the link provided in the email directs consumers to a fraudulent website, where tracking programs log the information entered and transmit it to the criminals behind the scheme (Bielski, 9).

Phishing, Hacking, and Spyware

Another method of identity theft involves hacking — the illegal breach of a company's database to obtain stored customer records. Criminals can exploit loopholes in particular ISPs (Internet Service Providers) to gain access to stored consumer credit card numbers, account numbers, social security numbers, addresses, and other personal information. This data can then be used to authorize illegal bank transactions, make fraudulent credit card purchases, obtain loans, and even reroute associated paperwork. Some researchers estimate that this type of identity theft affects as many as 20% of consumers (Bielski, 9).

While identity theft targeting company databases is a serious concern, there is also risk in simply storing personal information on home computers. Certain programs — easily hidden inside fraudulent emails and website downloads — can contain Trojans and viruses that open a system to hackers. Once inside the system, these individuals can access any personal information stored there, including usernames and passwords, banking information, and other sensitive data (Sinrod, 16).

A recent study revealed that over 90% of broadband users sampled had computer systems infected with spyware. Spyware is software that installs itself on a system through websites and downloaded files, then tracks online behavior. The results of this tracking are sent to companies and criminals, who use the information for both legitimate and illegitimate purposes. Some programs are even capable of logging keystrokes and capturing screenshots, giving criminals access to credit card numbers, usernames, and other sensitive data (Bahl, 219).

Conclusion

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Rheingold, Howard. "Disinformocracy." Challenging Perspectives. Ed. Deborah Holdstein. New York: Houghton Mifflin, 2005: 182–192.

Sinrod, Eric J., and William P. Reilly. "Cyber Crimes: A Practical Approach to the Application of Federal Computer Crime Laws." Computer & High Tech 16.210 (2000): 16–20.

U.S. Department of Justice. "Identity Theft and Fraud." U.S. Department of Justice, 2005. Accessed 8 Dec. 2006. http://www.usdoj.gov/criminal/fraud/idtheft.html