by The Computing Australia Group | Monitor bank accounts and
credit reports regularly
As more of daily life moves online-banking, shopping, healthcare, government services, even signing documents-your identity has effectively become a collection of digital signals: logins, device fingerprints, email addresses, government IDs, passwords, and behavioural patterns. That convenience is valuable, but it also creates opportunity for cybercriminals.
Identity theft isn’t just “someone stole my credit card.” It can include taking over your online accounts, opening loans in your name, redirecting your mail, filing a tax return pretending to be you, applying for services using your personal information, or impersonating you to scam your contacts. The impacts can range from annoying (resetting passwords) to deeply disruptive (financial loss, legal issues, damaged credit, and months of recovery work).
This guide explains what identity theft is, how it happens today, and the most effective steps you can take-right now-to reduce your risk. It’s written for everyday users, but with the depth you’d expect from a cybersecurity-focused team.
What Is Identity Theft?
Identity theft occurs when someone uses your personal information without permission to gain a benefit or cause harm. That “personal information” might include:
- Your full name, date of birth, address, or phone number
- Driver’s licence, passport, Medicare details, or other ID numbers
- Bank account and credit card numbers
- Login credentials for email, social media, and work accounts
- Security question answers or one-time codes (OTPs)
- Copies/photos of documents you’ve shared online
The goal is usually financial, but identity theft is also used for:
- Creating “synthetic identities” (mixing real and fake data to create a new identity)
- Getting access to services (phone plans, utilities, subscriptions)
- Scamming family, friends, or coworkers using your compromised accounts
- Covering tracks for other criminal activity
How Identity Theft Happens Today
Most identity theft isn’t a Hollywood-style hack. It’s typically the result of small gaps in security and a bit of social engineering. Common entry points include:
1) Phishing and impersonation scams
Attackers send emails, texts, or messages pretending to be banks, delivery services, government agencies, or workplaces. The goal is to make you click a link, open a file, or “verify” details.
2) Password reuse and credential stuffing
If one website you used gets breached and you reused the password elsewhere, criminals can try the same login across other services automatically.
3) Malware and malicious downloads
A fake “invoice,” a cracked app, or an infected ad (malvertising) can install spyware or steal saved passwords.
4) Data breaches
Your details can leak from organisations you’ve never directly dealt with-via suppliers, third parties, or older systems.
5) SIM swapping
Criminals trick a telco into transferring your number to their SIM card, then use SMS-based codes to reset accounts.
6) Lost or stolen devices
If a phone or laptop isn’t locked securely—or if sensitive apps don’t require re-authentication—account takeover can happen fast.
Identity theft prevention is about reducing these entry points and limiting damage if something slips through.
10 Proven Ways to Protect Yourself from Identity Theft
1) Secure your devices like they’re wallets
Your phone and laptop contain the keys to your digital identity: saved logins, banking apps, email access, and personal documents.
Do this now:
- Use a strong device passcode (6+ digits, or an alphanumeric password). Avoid patterns and 4-digit PINs if possible.
- Enable biometrics (Face ID/fingerprint) and keep the passcode strong.
- Turn on automatic locking (1–2 minutes).
- Enable full-disk encryption (on by default for most modern iOS/Android/macOS/Windows systems).
- Activate Find My Device / Find My iPhone and ensure you can remotely lock or wipe your device.
- Keep lock-screen notifications minimal (don’t display full message contents).
Extra hardening:
- Don’t store photos of IDs, tax documents, or passwords in your camera roll. If you must store documents, use an encrypted vault.
2) Use a password manager and stop reusing passwords
Passwords are still a major cause of identity theft—especially when people reuse them.
Best practice in 2026:
- Use a password manager to generate and store unique passwords for every account.
- Aim for passwords of 14–20+ characters (managers can create these instantly).
- Use passphrases only when you must remember it (e.g., for your password manager’s master password).
A strong password strategy:
- One memorable, long passphrase for your password manager
- Unique random passwords everywhere else
- No repeats. Ever.
Also do this:
- Change passwords immediately after a breach or suspicious login.
- Review and remove old accounts you no longer use (they become weak points over time).
3) Turn on multi-factor authentication (MFA)-but choose the right type
MFA adds an extra step when logging in, so even if a criminal gets your password, they can’t easily access your account.
Best to good MFA options:
1. Security keys (hardware keys like YubiKey-style devices) – strongest for high-value accounts
2. Authenticator apps (time-based one-time codes, push approvals) – strong and widely available
3. SMS codesbetter than nothing, but weaker due to SIM swapping
Prioritise MFA on:
- Email (most important-email unlocks password resets)
- Banking and payment accounts
- Apple ID / Google account
- Social media (to prevent impersonation)
- Cloud storage (Drive, iCloud, OneDrive)
- Any account that stores personal data
- Pick a strong, memorable master passphrase
- Store recovery codes safely (offline)
- Replace your most important passwords first: email, banking, myGov, Apple/Google accounts, password manager itself
4) Keep your operating system and apps updated
Updates aren’t just “new features.” They patch known security vulnerabilities that criminals actively exploit.
Do this:
- Enable automatic updates for your phone and computer.
- Update browsers (Chrome/Safari/Edge/Firefox) and password managers promptly.
- Don’t ignore firmware updates for routers and smart devices if you use them.
If you’re managing a household:
- Help family members update devices too—attackers often target the “easiest” person and pivot from there.
5) Install reputable antivirus and use built-in protections
Modern security is layered. Antivirus isn’t a magic shield, but it helps detect malware, suspicious downloads, and exploit behaviour.
Recommendations (general):
- Use a reputable solution and keep it updated.
- Don’t run multiple antivirus products at once-they can conflict.
- On Windows, built-in protections are strong when kept updated and configured properly.
Also:
- Enable firewall protection.
- Consider browser security extensions sparingly—too many extensions can become a risk.
6) Only download apps and software from trusted sources
Fake apps and “clone” apps can look legitimate. Some are designed purely to harvest logins or device data.
Safe download rules:
- Install apps only from official stores (Apple App Store, Google Play) or the vendor’s official website.
- Check reviews, developer name, download count, and permissions.
- Be cautious with “free” versions of paid apps, cracked software, and unverified browser extensions.
Permission hygiene:
- Does a flashlight app need your contacts and microphone? No.
- Grant minimum necessary permissions, and review them periodically in your device settings.
7) Use a VPN on public Wi-Fi (and avoid risky networks)
Public Wi-Fi (cafés, airports, hotels) can expose you to interception, fake hotspots, and tracking.
A VPN can help by encrypting traffic between your device and the VPN provider, reducing what others on the same network can see. It’s especially useful when:
- You’re using public or shared Wi-Fi
- You need to access sensitive services while travelling
However, a VPN is not a full security solution. It won’t:
- Prevent phishing if you enter your details into a fake website
- Stop malware if you download it
- Fix weak passwords or missing MFA
Practical steps:
- Avoid logging into banking on public Wi-Fi unless necessary.
- Prefer your mobile hotspot when possible.
- Turn off “auto-join” for Wi-Fi networks.
8) Treat links, attachments, and QR codes as “untrusted by default”
Many identity theft incidents start with one click.
Before you click:
- Hover over links (on desktop) to view the destination.
- Check for misspellings, odd domains, shortened URLs, and “urgent” language.
- Be cautious with QR codes in public spaces (QR phishing is increasingly common).
For attachments:
- Be suspicious of unexpected invoices, “secure documents,” and files requiring you to “enable macros.”
- If in doubt, verify using a separate channel (call the organisation using an official number).
A simple rule that prevents a lot of damage:
If a message pressures you to act fast, pause. Urgency is often the scam.
9) Watch for phishing—and protect your email like it’s your vault
Email is the most important account to secure, because it’s used to reset almost everything else.
Email protection checklist:
- Unique password + MFA (prefer app or security key)
- Review account recovery options: phone numbers and backup emails must be yours and current
- Set up sign-in alerts for new devices/logins
- Review forwarding rules and filters (attackers may hide their tracks by auto-forwarding or auto-archiving messages)
- Be cautious with OAuth permissions (“Sign in with Google/Microsoft”)—review connected apps regularly
Phishing red flags:
- Unexpected password reset emails
- “Your account will be locked today” threats
- Requests for codes (OTPs) or “verification” of personal details
- Attachments you weren’t expecting
- Slightly-off domains (e.g., rnicrosoft instead of microsoft)
Remember:
Legitimate banks and agencies generally won’t ask for sensitive credentials by email or SMS.
10) Share less on social media—and lock down privacy settings
Oversharing makes impersonation easier. Scammers use social media to answer security questions, craft believable messages, and target your contacts.
Common oversharing risks:
- Photos showing addresses, ID cards, tickets, QR codes, boarding passes
- “About me” details like birthday, school, workplace, phone number
- Public posts that reveal travel dates (useful for burglary as well)
What to do:
- Set profiles to private where possible.
- Limit who can see your birthday, phone number, and friend list.
- Be careful with “this or that” quizzes—many map directly to common security questions.
11) Enable transaction alerts and monitor your accounts
Fast detection reduces damage. Many banks and card providers allow instant notifications for purchases, online transactions, and transfers.
Turn on alerts for:
- Card purchases (especially “card not present” online purchases)
- Bank transfers and payee additions
- New device sign-ins
- Password changes and MFA changes
Also consider:
- Regularly reviewing statements (not just balances)
- Checking for small “test” transactions—criminals often test with tiny amounts first
12) Protect your identity documents and mail
Identity theft isn’t purely digital. Physical documents can still be exploited.
Best practices:
- Shred sensitive documents (bank letters, statements, ID copies)
- Secure your mailbox (or use a PO box for sensitive correspondence)
- Don’t leave packages unattended when possible
- Store passports and important documents securely
If you email or upload ID documents:
- Use secure channels and send only when necessary
- Add a watermark to ID copies stating the purpose and date (where accepted)
What to Do If You Suspect Identity Theft
Even with strong security, breaches and scams happen. Acting quickly can limit the fallout.
Immediate steps:
1. Change passwords for affected accounts (start with email)
2. Enable MFAand revoke other sessions/devices where possible
3. Check account settings (forwarding rules, recovery email/phone, connected apps)
4. Contact your bank if money or cards are involved and ask about freezing cards or accounts
5. Monitor credit and consider placing credit alerts or freezes (depending on your country)
6. Report the incident to relevant authorities and keep a record of dates, evidence, and reference numbers
If your phone number stopped working unexpectedly:
- Contact your telco immediately and ask about a possible SIM swap
If you’re in Australia:
- Consider reporting scams through government reporting channels and follow recommended steps for identity compromise and document protection.
Computing Australia has more than 20 years of experience in helping companies of various sizes protect against cybersecurity issues. We also conduct penetration tests and cybersecurity training to help a company be completely secure. Contact us or email us at cybersecurity@computingaustralia.group. Our cybersecurity team is 24/7 ready to help you with any cybersecurity problems.
Jargon Buster
VPN – Virtual Private Network is an encrypted connection across a public network that provides online anonymity.
Phishing – a fraudulent attempt where the criminal impersonates as a trustworthy entity to obtain sensitive data through digital communication.
MFA – Multi-factor authentication is a security system that needs two or more distinct authentication factors to verify your identity to access an account or information.
Gordon Murdoch
FAQ
What are the most common signs of identity theft?
Common warning signs include unexpected password reset emails, unfamiliar transactions (even small “test” charges), new accounts you didn’t open, debt collectors contacting you, missing mail, or notifications about logins from unknown devices/locations.
What should I do first if I think my identity has been stolen?
Start with your email account (because it can reset other logins). Change your email password, enable MFA, sign out of all other sessions, and check for suspicious forwarding rules. Then contact your bank/payment providers and monitor your credit where available.
Is multi-factor authentication (MFA) really necessary?
Yes—MFA is one of the most effective ways to stop account takeover. Even if someone gets your password from a breach or phishing scam, MFA can block access. Authenticator apps or security keys are stronger than SMS codes.
Can a VPN prevent identity theft?
A VPN helps protect your data on public or unsecured Wi-Fi by encrypting traffic, but it doesn’t stop phishing, malware, or weak passwords. Think of it as one layer in a broader security setup (password manager + MFA + updates + safe browsing).
How can I reduce my risk of identity theft long-term?
Use a password manager with unique passwords, enable MFA on key accounts (especially email and banking), keep devices updated, avoid suspicious links/attachments, limit what you share publicly online, and turn on transaction and login alerts for early detection.
