Identity Theft

Identity Thieves Employ High-Tech Tactics

Aleksandra Todorova
SmartMoney.com

THANKS TO TECHNOLOGY advances, identity thieves no longer need to dumpster-dive in search of your private information. Now, sensitive data can easily land in their hands while you're shopping, browsing the Internet or simply visiting your dentist.

Here are five of the latest high-tech forms of identity theft, according to Truecredit, a unit of credit-reporting bureau TransUnion, along with ways consumers can protect themselves.

1. Pharming. You've probably heard of "phishing," a form of identity theft where fake emails are sent out, asking you to urgently update your bank account or credit-card information, which is then sent to identity thieves. Now phishing has evolved into "pharming," where thieves create fake Web sites similar to the Web sites of banks or credit-card companies. When consumers who don't know the difference try to log in, their account information is sent along to the thieves.

These Web sites get traffic through phishing, explains Nicole Lowe, credit education specialist at Truecredit.com, or with the help of computer viruses that automatically redirect traffic from specific Web addresses, such as those for banks, credit-card companies or shopping Web sites. To avoid pharming, look out for anything strange or new in the site's Web address, or URL, Lowe recommends. You can also browse the Web site in depth. The crooks likely haven't recreated all its layers.

2. Gas stations. Every time you swipe your credit or debit card at the gas pump, your information is sent via satellite to your bank for verification. According to Truecredit, identity thieves have now invented a way to hijack that information by modifying the program that carries out the data transfer so that your credit-card number is sent to them at the same time it's sent to your bank. While there isn't a way to detect when your data are being stolen, Lowe recommends using only credit cards at the pump as a precaution. With debit or check cards, it takes a while for fraudulent purchases to be credited back into your checking account, while credit-card companies will remove any disputed charges from your account immediately.

3. International skimming. According to Truecredit, skimming occurs when your credit card is run through a small reader, similar to those used in grocery stores, which captures your card information for future use by identity thieves. This form of fraud is common in the service industry here in the U.S., and anywhere abroad. Be on the lookout when paying with a credit card in a restaurant that you're not familiar with, Lowe recommends. If you don't feel comfortable letting your card out of sight, use cash or walk over to the cash register to pay your bill. When traveling abroad, use only one credit card so it's easier to detect any fraudulent charges.

4. Keystroke catchers. These small devices are attached to the cable that connects your keyboard to your computer and can be bought online for a little over $100. The "catcher" resembles a standard connector, but contains a memory chip that records everything you type. It's typically used in public places where computers are available, such as libraries, Internet cafes and college computer labs. To protect yourself when using a public computer, never shop online, check your bank account, pay bills or enter your credit-card information.

5. Database theft. Chances are, your personal information is part of numerous databases, including those at your dentist and doctor's offices, your college or university admissions office, your mortgage and insurance companies, even your local Blockbuster. While there's little you can do about the way those companies safeguard your information, you can try limiting their access to sensitive data, such as your Social Security number, says Lowe. Your cable company and DVD rental store, for example, have no need to know your Social Security number and should agree to an alternative, such as the last few digits of your driver's license number.

Back to Tech Insider: Surviving Identity Theft.