Highlights:

• Data breaches escalate the personal risk of identity theft for all Australians.
• Stolen data can be weaponised for financial theft and creating new identities, making identity theft protection crucial.
• Proactive steps like credit report and dark web monitoring, checking your accounts, creating strong passwords and using  multi-factor authentication are key to helping secure your identity
   

In Australia, data breaches have become an unfortunate reality. When your personal information falls into the wrong hands due to a cyberattack on an organisation – as seen with recent incidents impacting major Australian corporations and millions of customer records – it’s far more than an inconvenience. It puts you at increased risk of identity theft. 

Thankfully there are ways to bolster your identity theft protection, even after your data has been stolen and made available on the dark web. 

Why data breaches pave the way for identity theft

When a company suffers a data breach, your sensitive personal information can be exposed, from your name, address, and date of birth to your driver's licence number, passport details or banking credentials. 
For instance, a stolen email address and password, if reused across multiple platforms, can grant criminals access to various online accounts – from social media to online banking. This access allows them to gather even more sensitive details, ultimately building a comprehensive profile for identity theft.

What personal data do criminals seek for identity theft?

Criminals seek a wide array of personal data. Even a single piece of your information can be used to exploit other sources. Read the story of ‘Aiden Turner’, a victim of identity theft who had his drivers licence stolen in a data breach. A fraudster took out a credit card in his name with a $17,000 credit limit and changed his address. 

How does stolen information lead to financial fraud and identity theft?​

Stolen information is frequently sold on dark web marketplaces. Fraudsters purchase these datasets to commit various crimes, including financial fraud. They can open new credit accounts, take out loans, or make unauthorised purchases in your name. 

In some cases, fraudsters may combine real and fabricated information to create synthetic identities, which are incredibly difficult to detect and can be used for long-term fraud. A synthetic identity combines fake and real personal information, such as a stolen tax file number paired with a made-up name or date of birth. 

Sometimes these identities are entirely fictitious, mixing a name, address and driver's licence number that don’t even belong to any real person. Criminals use synthetic identities because they can often fool identity verification checks, making it easier to open accounts and access credit. These false identities can go undetected for years.
 

Are you more vulnerable to scams and impersonation after a breach?​

Exposed, stolen data leaves you vulnerable to phishing and social engineering scams. Knowing personal details about you makes the fraudsters' deceptive messages far more convincing. This makes it easier for criminals to trick you into revealing further sensitive information or parting with your money. 

These targeted attempts means effective identity theft protection is vital to protect against identity theft attempts after a breach.

How should Australians protect against identity theft?

Protecting your identity after a data breach requires swift and decisive action. The good news is there are things you can do to reduce your risk and enhance your overall identity theft protection.
 

1. Improve your credit protection to prevent identity theft

• Monitor your credit report: Regularly check your credit report for unusual activity and keep an eye on your credit score for unexpected drops. You can check your credit history for free once every three months from Equifax, or subscribe to our Equifax Credit and Identity Protect services to monitor activity in your credit report and receive alerts for key changes including credit enquiries and applications made under your name.
   
• Engage an identity protection service: Identity protection services can determine whether your personal information is being traded on the dark web. If you choose an Equifax plan that includes Norton™ dark web and social media monitoring you will be notified if your personal details appear on the dark web or suspicious activity occurs in your social media accounts.

2. Monitor your finances closely for identity theft signs

To protect against identity theft fraud, regularly check your bank and credit card statements for any suspicious or unauthorised transactions. Set up transaction alerts with your financial institutions so you’re immediately notified of any activity. If you spot anything unusual, report it to your bank immediately to protect against identity theft.

3. Strengthen your digital defences for identity theft protection

A key part of how to secure your identity is fortifying your digital presence. Change passwords for key accounts such as bank accounts, emails and social media and any other accounts where you might have reused that password or a similar password. 

Always create strong, unique passwords for each online service. This includes enabling multi-factor authentication (MFA) wherever possible. MFA encompasses any system that uses two or more different forms of verification to confirm your identity, making it a stronger security measure than two-factor authentication (2FA). 

This extra layer of security, typically requiring a password, token from an authenticator app or biometric scan, makes it much harder for criminals to access your accounts even if they have stolen your password. 

4. Be wary of unexpected contact as an identity theft protection measure

Data breaches are often followed by a surge in highly targeted scams. Be extremely suspicious of unsolicited emails, texts, or phone calls, especially if they claim to be from organisations that have suffered a breach and ask for personal details or login information. 

Always verify the legitimacy of such communications through official channels, never by clicking links or calling numbers provided in the suspicious message.

5. Seek expert support for identity theft recovery​

In Australia, IDCARE is the national identity and cyber support service. They offer free advice to individuals who have been impacted by data breaches or identity theft. 

Resources like Cyber.gov.au and Equifax blogs also provide guidance on identity theft protection and how to recover from identity theft and cyber incidents. If identity documents like your passport or driver's licence were compromised, contact the issuing authority to understand replacement procedures. 

While Australia’s escalating number of data breaches present a serious threat to your personal data and financial security, being informed and proactive can help significantly bolster your protection against identity theft. 
 

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.