Reviewed by Ian Lyngklip

Key Takeaways

  • Breaches, phishing, and skimmers are the three main routes.
  • Login credentials often sell for more than a Social Security number.
  • The dark web is a small subset of the deep web, not the same thing.
  • Thieves bundle stolen details because a package sells higher.

Unfortunately, criminals are becoming more and more sophisticated, continually finding new ways to circumvent security measures. As such, it can be difficult for companies and individuals to understand the means by which their personal information can be compromised, as the constant evolution of the internet means thieves are continually developing new ways to scam and steal from hard-working individuals. However, it is imperative to understand the common ways in which hackers obtain sensitive information so you can best protect yourself. The following blog explores methods utilized by thieves and the importance of working with a Michigan identity theft lawyer if you have reason to believe you are a victim.

What Methods Do Hackers Use to Commit Identity Theft?

One of the most common methods for obtaining the personal information of consumers is through data breaches. Essentially, any time an unauthorized party gains access to the data of others, it constitutes a data breach. This can impact government offices, medical providers, retail stores, and even financial institutions.

Most commonly, thieves can bypass the security measures implemented by these companies to obtain information for their own gain, like:

  • Email addresses
  • Passwords
  • Birthdates
  • Credit card numbers
  • Addresses
  • Social Security numbers

Often, when a data breach occurs, the thief will take the information of thousands of individuals and sell the information to others looking to commit identity theft.

Phishing Scams

Another way in which thieves can take advantage of consumers is through phishing scams. A phishing scam is a scheme used by thieves that targets individuals through text or email by posing as a legitimate company. For example, they might send a text message to an individual posing as their bank, alleging that someone has tried to make a large purchase using their debit card. The text will then have a link to log in and change the password on the account for additional security measures. However, when the victim clicks the link and enters their banking information, they are providing it directly to the thief.

Card Skimming

Finally, you’ll find that banking information can be stolen through the use of card skimmers. These are devices that attach to the card readers at point-of-sale terminals like ATMs, gas stations, and even retail locations. These skimmers glean the credit card information of patrons who insert their cards to make a payment.

What Information Thieves Want Most

Not all stolen data is equally useful to an identity thief. For example, your full legal name is not worth much on its own, but it can serve as an important foundation. When combined with your date of birth or an account number, these may be enough to open a credit card in your name. Additionally, it can make you an easier target for phishing scams.

Why Login Credentials Top the List

Your user name and password, however, are higher value. This can be used to open an account directly, and if the password is reused, it can be used to access several accounts. Login credentials belonging to an employee may also provide an attacker with a route into a company network, which is why this information may be worth more than a Social Security number.

Prevention Still Works

You should also understand that prevention methods are worth the effort, despite the belief that identity theft is inevitable and nothing can prevent it. As such, utilizing two-factor authentication, using different passwords for your accounts, and limiting where you keep your personal information will make you a less-valuable target, and a thief with easier options will generally take them.

How Stolen Identities Are Sold on the Dark Web

Stolen data is generally sold, rather than utilized by the thief. It’s important to understand that the deep web and dark web are different, and the implications of each vary considerably.

The deep web is anything that is not indexed, including things like email inboxes and online banking accounts, ultimately accounting for the overwhelming majority of the internet.

The dark web, on the other hand, is a small subset of that content, which is typically only accessible through certain software, like a Tor browser. According to reports compiled by the Congressional Research Service, a considerable amount of criminal activity there takes place on marketplaces on the dark web.

What a Darknet Market Looks Like

Though the dark web may seem unfamiliar, these marketplaces generally function the same as any other you would see on the public web, like Amazon or eBay, where hidden buyers purchase items or services from hidden sellers. In fact, the Department of Justice’s National Institute of Justice even details how these platforms are complete with customer ratings, much like what is common on the public web.

Why Thieves Bundle Your Data

Before listing your information for sale, the seller will often package it to increase the value of your details. For example, a credit card number alone is worth less than a number packaged with a billing address, while Social Security numbers with a date of birth included are in higher demand. That is why a single breach may result in a complete profile of your identity months later.

What Can I Do if My Identity Has Been Compromised?

Discovering that you are a victim of identity theft can be incredibly overwhelming. However, it’s critical to take immediate action to prevent more adverse impacts on your life. As such, one of the most important things you can do is contact the credit reporting agencies to request a fraud alert be placed on your account, as this requires creditors to confirm your identity before opening accounts in your name. Additionally, you should contact any impacted financial institution to report the fraud.

Contact an Experienced Identity Theft Attorney

One of the most important things you should do, however, is contact an experienced identity theft victim defense attorney with Lyngklip & Associates. Our firm understands how devastating it can be to discover that hackers have obtained and used your personal information. That is why our firm will do everything possible to help you reclaim your identity. Contact us today to learn how we can fight for you during these difficult times.