Online Identity Theft

Vastly different from identity theft as it occurs in physical (or “meat”) space, Internet identity theft can prove difficult to detect. The first kind typically involves the theft of such things as credit cards, checkbooks, mail and identification cards. The second kind, on the other hand, involves the theft of such confidential documents as receipts and tax returns. Because it happens digitally, Internet identity theft escapes the victim’s notice for a long time.

More than simply a tool for communication and information processing, your personal computer functions as a vast repository of information. On its hard drive sit a Web cache, browser history, temporary Internet files, and stored passwords and usernames. Cyber-fraudsters hack personal computers in search of these files, as they can use them to reconstruct confidential information – credit card and banking account numbers, Social Security numbers, addresses, login IDs.

Malware: Its Definition and Varieties

These fraud-minded hackers rely on malware to infiltrate a personal computer and grab the data they want. Any malicious software designed to destroy or damage a computer, or to breach its defenses, counts as malware. Uploaded onto personal computers via e-mail attachments, unsecured websites, dodgy downloaded files, and dubious hyperlinks, malware comes in a variety of types:

• Adware;
• Backdoors;
• Crimeware;
• Rootkits;
• Spyware;
• Trojan horses;
• Viruses;
• Worms.

A type of software that when downloaded conjures advertisement banners and pop-ups, adware slows connections – often to the point of rendering unstable the user’s computer system. Some adware also monitors user habits and information, with the possible intent of selling it to third parties. Such free software as computer games, wallpapers, advanced search engines, peer-to-peer programs, and other files figure as so many potential conduits for adware.

Backdoors provide a hacker access to an infected computer, and it conceals any trace of this appropriation.

Any computer program designed to aid illegal online activities counts as crimeware. Some types of crimeware gather users’ personal information illegally by installing keyloggers, which record everything the user types; while others enable phishing by providing tools to con artists. Vulnerabilities in web applications, email, and peer-to-peer sharing networks represent ways crimeware can find itself onto a personal computer.

Software programs designed to conceal the fact that a hacker has gained access to a user’s computer, rootkits can take years to discover on your hard drive. With a rootkit a hacker essentially hijacks the affected computer; he can access it any time he wishes and can devote it to any purpose he chooses.

Programs that conceal viruses, Trojan horses disguise themselves with an appearance of legitimacy and trustworthiness, but the intent behind them speaks to something quite insidious. Users often pick up Trojan horses when they download free software or unverified email attachments.

Viruses have the ability to replicate themselves. In so doing they can infiltrate a personal computer without the owner’s consent. Cyber-crooks spread viruses by infecting files, a computer’s specific system’s area or network router. Once established in one of these spots the virus begins to replicate itself.

Another kind of self-replicating virus, worms generally use networks to send copies of themselves to other computers on a network, taking up valuable bandwidth and memory. This hogging of bandwidth and memory forces a computer into nonresponsiveness. Worms also make it possible for hackers to gain access to users’ computers in order to steal information.

The Effects and Consequences of Internet Identity Theft

Hackers use malware to obtain users’ confidential information, such as account and social security numbers, addresses, tax information, and other data with which they can realize some monetary gain. The kinds of a crime they can commit to this information include the following:

• Identity theft – Thieves can use individuals’ account numbers to open fraudulent bank accounts, apply for credit and make large purchases.
• Employment fraud – Thieves can use individuals’ identities to obtain employment falsely. They require only a social security number, account number and personal details (date of birth, current and prior street addresses).
• Black market identity traffic – Thieves can log onto black market websites and sell individuals’ personal information, such as account numbers, identification numbers and addresses, to their colleagues. Often, complete identities command as small a price as $14.00 on these illegal websites.

Notorious Computer Viruses

In existence for over 25 years, computer viruses has established quite a history of devastation. Noteworthy recent ones include the following:

• Love Bug (2000) – Spread through email attachments by disguising itself as a love letter, this virus replicated itself by copying itself to recipients’ address books.
• Sasser (2004) – This virus caused millions of infected computers around the world continuously to crash and reboot themselves.
• Mydoom (2004) – One of the fastest spreading email worms ever, this virus sent junk emails to users via infected computers.
• Stuxnet (2010) – Designed to jump from computer to computer using human and network pathways, this virus kept moving until it found a specific, well-protected control system, which it would then destroy.

Guarding Against Malware

A few commonsense precautions when surfing the Web and checking emails can protect users from malware:

1. Do not click on every link sent to you through email and instant messenger. Oftentimes, links and emails hide malware. Even if they are from a familiar person, suspicious email and linked should remain unopened.
2. Do not download free applications over file-sharing networks, such as LimeWire, Filestube, Megaupload or Pirate Bay. Spyware, adware and Trojans may lurk in the downloaded programs. Download software only from trusted, secure websites.
3. Jettison Internet Explorer as a default browser in favor of the more secure Firefox. Firefox’s No Script add-on blocks malicious Javascripts and Flash programs.
4. Use a firewall. Users should turn on their Windows firewalls and any firewalls they have in their home routers.
5. Upgrade any software applications, and update all software programs, including Quicktime and Acrobat Reader.
6. Apply patches. Users should apply patches to their computers to also protect against vulnerabilities.
7. If you happen to download files from peer-to-peer (P2P) networks, save other important or sensitive documents in a folder other than the one designated “My Documents.” P2P sharing programs have access to contents in the “My Documents” folder by default, and can share confidential files with thousands of users.

In addition to heeding the above common-sense advices, individuals should also:

1. Install a reputable antivirus program. All computer users should install a reputable antivirus program, such as Norton or McAfee Antivirus, before surfing the Internet or downloading files. Reputable antivirus programs protect against most malware, including worms and Trojans, but not against adware and spyware.
2. Install a reputable antispyware program. Computer users should also install a reputable antispyware program, such as Kaspersky or Spyware Doctor, in order to protect against malicious spyware and adware.
3. Install firewalls. Firewalls guard against unauthorized outside access. Personal computers generally have built-in firewalls, which users need to remember to turn on.
4. Update all antivirus, antispyware and firewall programs. Regularly updating antivirus, antispyware and firewall programs protects against the latest malware advances.

Such identity theft protection companies as LifeLock and TrustedID offer spam and junk-mail removal. They also scan online black markets for evidence of traffic in their customers’ sensitive information. In the event that they should uncover such evidence should occur, they issue credit freezes, fraud alerts and take other prophylactic measures.

Summary

Hackers’ weapon of choice when it comes to piercing personal computer defenses remains malware. Once compromised, these defenses place in hackers’ hands a wealth of information they can use to commit fraud and related kinds of crime. Safeguarding computers and confidential files by exercising commonsense and by installing protective software remains, then, your top data-security responsibility for 2012 and the years that follow.