Identity theft is an increasingly serious concern. Not only due to financial implications such as hacked bank accounts and credit card fraud. But concerns also relate to liability for identity theft due to inadequate destruction or disposal of sensitive and personal information.
Access to sensitive information can result in the following types of fraud:
Identity fraud is not common these days, however, it is serious when it happens. The identity thief will use the victim’s ID number to get an ID document or a driver’s licence in the victim’s name, using their own photograph. With this type of fraudulent identification, they can secure various types of benefits using the victim’s name.
Online banking fraud
Online banking fraud is another type of fraud frequently committed by identity thieves. With the victim’s personal information, it is possible for the criminal to open several new bank accounts. Criminals can also take out massive loans and default payments on them, leaving the victim with untold financial trouble that will be difficult to rectify.
Credit card fraud
When sensitive information falls into the hands of identity thieves, they frequently use this information to open credit card accounts with the victims’ stolen personal details. Identity thieves also use personal information to change existing billing addresses so that the credit card statements no longer go to the victim’s actual address, making it possible for the criminals to rack up enormous charges on the existing credit card without the victim realising it until damage has been done.
Fraudulent driver’s licenses and ID documents can also be used to apply for jobs, using the victim’s internet accounts such as LinkedIn in order to get information on the victim’s professional skills and work history. The identity thieves can use the fake IDs for all sorts of fraudulent activities such as renting a house or an apartment, applying for telephone and internet accounts and a host of other accounts and services.
Still adamant that in-house shredding is good enough?
As you can see crime using sensitive information is rampant. Before you decide that your company will do document shredding in-house, think of the implications. Outsourcing your document destruction requirements to a reputable document management company will prevent delicate information from falling into the wrong hands.