What is identity theft?

Identity theft occurs when someone gathers your personal information without your knowledge or permission.

Unlike other scams, it can strike without warning. By the time you've found out it's happened to you it can be too late.

According to Neighbourhood Support New Zealand: "Theft of your personal information takes many forms, from stealing your wallet to intercepting your mail. Once the thief has successfully assumed your identity there are many things they can do with it, from buying and using a mobile phone to writing cheques and opening a credit card account in your name."

An American lobby group, the Identity Theft Resource Center (ITRC), calls identity theft the US's fastest growing crime. It estimates 10 million people become victims every year in the States alone - that's 19 new victims every minute. The ITRC believes the rate of identity theft is increasing and says the US Justice Department rates it as the number one crime in the nation, ahead of drug trafficking.

How it works

A typical identity theft case works like this - someone pretends to be you and borrows money in your name. They don't pay it back. Then it's up to you to prove you didn't have the money and that you are who you say you are. It taints your good reputation and credit rating.

In the US there have been cases where it has made people homeless - with a poor credit rating you may not be able to get a mortgage, and if you end up with a criminal record you may not be able to rent. Victims can experience increased insurance fees, inability to find a job, and battles with collection agencies that refuse to correct records.

The ITRC says the effects of identity theft can last for more than ten years after the crime has stopped. Identity theft victims show the same symptoms as victims of violent crimes including rape, violent assault and repeated battering.

Here in New Zealand, police say victims can have ongoing problems trying to restore their reputation. According to the police's brochure 'When bad things happen to your good name': "Many victims need to expend large amounts of time and resources convincing banks, financial institutions and other agencies that they were not responsible for the fraudulent activity that occurred in their name. Many victims have also found difficulty in restoring their credit rating to what it was prior to the theft of their name."

Some protection

New Zealanders are given some protection by the Credit Reporting Privacy Code. This gives us certain rights when data are gathered and held in this country. The code:

• limits the type of information that can be recorded about you
• limits the people who can access your file and their reasons for looking
• requires you to consent before a credit check can be made (in most situations)
• gives you access to all your credit files
• gives you the right to dispute inaccurate information and to make a complaint.