How Your Personal Information is Used from Phishing Scams 

What happens to the personal information when collected?

There are a number of ways in which personal information collected is used by the fraudsters:

  • Hijacking user accounts
  • Fraudulent use of credit cards
  • ATM card duplication
  • Identity Theft

1. Hijacking user accounts

If the victim provided bank account information, the fraudsters are likely to hijack the victim's bank account; access passwords can be changed, locking the victim out of their account. The fraudsters may empty the victim's bank account by electronically transferring funds to a temporary account they have fraudulently set up using someone else's personal information. The cash is then withdrawn before the victim is aware what has happened.

The fraudsters may also create, write and cash fraudulent counterfeit checks on the victim's account. In this way, the victim has no idea they have been defrauded until they notice cash has left their account.

The fraudsters may also store the account information, waiting for a time when there is the desired amount of money in the account. The victim has no idea, until it's too late.

2. Fraudulent use of credit cards

If the victim provided credit card details, it is likely their card details will be used to make unauthorized fraudulent purchases.

The credit card information may also be sold to organized fraud rings, weeks or months down the track. The victim is unaware their credit card information is in the hands of fraudsters until they begin to see unauthorized charges on their statement, or they try to use their card and it has been maxed out.

3. ATM card duplication

There has been a trend of phishing scams that require the user to provide their ATM card number, expiry date and ATM pin. This allows the fraudsters to create duplicate ATM cards, linked to the victim's debit card account. The victim's account may be cleared out through ATM withdrawals.

4. Identity Theft

Identity Theft is the use of someone's personal information without their knowledge to apply for credit cards, make unauthorized purchases, gain access to bank accounts and apply for credit. Often, credit is obtained using the victim's name and personal information, who is then left to explain the credit and clear their name long after the fraudsters has disappeared.

Identity Theft is reported to be the world's fastest growing crime. In the past, fraudsters would trowel through rubbish bins and letterboxes looking for documents with personal information. Now they simply ask the victims for the information, in the form of phishing scams.

Personal information is traded amongst identity thieves. Whilst the phisher's themselves may not use the personal information, it may be sold to identity thieves who will then use it to meet their needs. False credit can provide fraudsters with an anonymous way to survive and financially support illegal operations.

Incidence of Identity Theft in the U.S. has grown by more than 40% in 2003 compared to the previous year. The Federal Trade Commission estimates 4.7% of the U.S. population, or 10 Million people were victims of Identity Theft in 2002, with total losses of US$53 billion. Of this US$5 billion was lost by victims, the remaining losses were picked up by businesses, including financial institutions. [U.S. Federal Trade Commission – Consumer Sentinel Report 2003]

For More information on Identity Theft, please view our ID Theft section of the web site here.

Man looking pensively at laptop

 

Subscribe to Fraud Alerts

Subscribe Free to FraudWatch International and receive our Phishing Fraud Alerts and Newsletter in your Inbox!

Privacy Policy