Headline: Identity Theft on the Rise in Cyprus: How Businesses and Customers Can Protect Against It

Identity theft, a growing concern for individuals and businesses alike, has seen a significant surge in Cyprus. According to Sumsub’s Identity Fraud Report, the rate of identity fraud nearly doubled from 1.1% in 2021 to 2% in 2023. ID cards were the most commonly used documents for scams and falsification.

Industries at Risk

Industries such as online media, professional services, healthcare, transportation, and video gaming are particularly vulnerable to identity theft. Let’s explore the most common types of identity theft and the precautions businesses and customers should take.

What is Identity Theft?

Identity theft occurs when personal information, including name, address, account numbers, and sensitive data such as credit card information or social security numbers, is stolen to make purchases, open accounts, or commit other unlawful acts.

How Fraudsters Steal Personal Data

Fraudsters use various methods to obtain personal information. They often target small and medium-sized businesses for data leaks. Business email compromises alone resulted in $2.7 billion in reported losses in 2022. Individuals can also have their personal information stolen through social media or by fraudsters posing as legitimate organizations or services, requesting sensitive data.

Common Types of Identity Theft

• Financial Identity: Thieves gain access to people’s finances or create new accounts using someone else’s identity.
• Driver’s Licenses: Thieves can obtain driver’s licenses in another person’s name for the purpose of traffic violations or vehicle theft.
• Social Security Numbers: Criminals use stolen SSNs to file false tax returns, obtain sensitive documents, or take out loans or apply for credit cards.
• Medical Identity: Thieves can use stolen medical records for health insurance and medical coverage fraud.
• Tax Identity: Once criminals have obtained someone’s tax information, they can file false tax returns and refunds.
• Employment Identity: Fraudsters can assume someone else’s identity to collect public benefits.
• Child Identity: Children’s personal data and SSNs can be used to obtain documents, apply for loans, and even credit cards.

Preventing Identity Theft

Although fraudsters continue to evolve their tactics, there are steps individuals and businesses can take to protect themselves from identity theft.

For Individuals:

1. Monitor Financial Accounts: Regularly check your financial accounts for unauthorized transactions.
2. Shred Documents: Securely shred documents containing sensitive information before discarding them.
3. Secure Social Security Cards: Keep Social Security cards in a safe place.
4. Set Up Secured PINs and Strong Passwords: Use unique, complex passwords and secure PINs for your accounts.
5. Limit Sharing Personal Data on Social Media: Be careful about what personal information you share on social media.

For Businesses:

1. Encrypt and Securely Store Customer Data: Use encryption and secure storage methods for customer data.
2. Implement a Secure Firewall and Updated Software: Install a secure firewall and keep software updated to protect against attacks.
3. Control Employee Access to Sensitive Information: Limit access to sensitive information to only those who need it.
4. Adopt New Technology and Security Solutions: Invest in new technology and security solutions to protect against identity theft.
5. Verify Customer Identity: Use appropriate methods, such as ID checks and two-factor authentication, to verify customer identity.

Despite the increasing rates of identity theft, businesses and individuals can take steps to protect themselves from the damaging consequences. By remaining vigilant and informed, it is possible to reduce the risks and protect financial and reputational assets.