Blockchain’s robust validation system – cryptography – allows reliable security toward data crimes by providing an excellent chance for the government and people to deter identity theft.
Identity theft is seen escalating at a pace never seen before. While mostly everyone knows about data breaches transpiring in organizations, not many know that identity theft occurs every two seconds and is the number one consumer complaint. To add to the list, it is recorded that nearly 60 million customers were hit by identity theft in the US alone, according to a 2018 online survey by The Harris Poll.
Visualize the consequence of this attack globally now. A majority of individuals may not even know what identity theft is. Most of them may not even come to see that they have become a victim of identity theft until they see negative consequences.
Shielding ourselves from this theft is secondary; knowing what identity theft is primary.
Identity theft is stealing someone else’s details without knowing to obtain confidential information for committing criminal activities. Fraudulent activities carried out by perpetrators in the name of an innocent person is awful, indeed! The need is to safeguard data from getting exploited. But ensuring this is not easier, as said.
To prevent identity theft might be challenging, but it is mandatory. Knowing attack points vulnerable to identity theft is the key to finding an infallible solution for getting rid of this issue. So, let’s now check the types of identity theft that can be expected from attackers.
Seven Types of Identity Theft
To prevent identity theft, we first need to understand the places where thieves can get personal information about people.
Driver’s License Identity Theft
Attackers having access or stealing their driving license will get hold of sensitive information and use it to commit fraudulent activities like opening credit card accounts or providing the same document when caught for careless driving.
2. E-commerce Fraud
Online identity theft is an act of cybercriminals stealing your payment details and credentials and making fraudulent retail transactions or unauthorized purchasing without your notice. These sophisticated tactics attackers use to commit a crime will hurt customers and ruin the brand reputation and customer loyalty relationship.
3. Mail Identity Theft
Did you know that your mailbox can also be vulnerable to cyber-attacks? Well, one in three cases involves identity theft via mail. Holding several financial records, including bank details, credit card information, or insurance data, the mailbox provides the best place for hackers to perform illegal activities. This valuable financial data can be used for their advantage, leaving victims with empty bank balances or other economic losses.
4. Social Security Number Theft
The social security number is assigned to citizens at the time of their birth. The nine-digit number holds sensitive data about citizen’s earning and other financial records. Now imagine someone misusing your confidential social security number for their benefit. If this happens, it will cause a lot of problems. Fraudsters gaining financial information can fill in fake account forms or even withdraw money using your social security number. Besides, attackers can use the number to gain fraudulent tax refunds. Even worse, the social security number can be used by criminals to apply for a job.
5. Synthetic Identity Theft
Synthetic identity theft is an act of mixing the stolen information with fake details to create a phony identity and using this type of identity for committing a crime. This newly created data is then used by criminals to execute fraudulent practices.
6. Medical identity theft
Medical identity theft is a practice of attackers stealing medical and insurance details to carry out illicit activities. Illegal access to medical and insurance data will allow attackers to impersonate the victim’s identity. These dishonest people can accomplish their criminal practices, ranging from claiming reimbursement of health insurance to receiving unfamiliar bill collections.
7. Internet of Things Identity Theft
Though the Internet has helped us in many aspects of our lives, it has created an excellent opportunity for hackers to access sensitive information. Smartphones are connected to products like activity trackers, household appliances, and other such things. These Internet-powered devices have technical and security flaws that open up new possibilities for attackers to steal identity information.
How Blockchain is Preventing Identity Theft
When it comes to cybersecurity risks, blockchain is considered a security solution for quite some time now. The incredible technology, blockchain, holds immense power and potential to secure sensitive data from malicious activities due to its sophisticated features.
While we already know that blockchain can fix cybersecurity risks, let’s now understand how technology can be used to curb identity theft. Since blockchain contains a decentralized ledger holding digital assets secured via vital cryptographic keys, it becomes challenging and complicated for hackers to manipulate the stored data.
The data is stored on multiple computers on a blockchain network. Attackers planning to get hold of vital data assets have to intrude into every system to reign the web, nearly impossible.
Even if hackers happen to gain access to the network, the changes they make to the data will be reflected in the systems, notifying every participant about the same. All of these make blockchain unique and probably the best solution for fixing security issues.
Now imagine, every data about a person’s identity is stored on a blockchain network, right from driving license to passport to social security number to medical and insurance data to other important details.
Creating a self-sovereign identity on a blockchain will allow individuals to take care of their identity documents. Blockchain’s immutable register will save people’s identities, providing each of them a unique, difficult-to-hack code. Even if they get hold of the code and enter the network to make changes, fraudsters cannot accomplish their goal without leaving a digital trail.
Since the data stored is safe and secure, attackers who wish to execute an identity theft will not be successful. People can access, view, monitor, and even update data anytime by entering the authentication keys. All data will be secured from hacker attacks, thereby helping both government and the public prevent identity theft.
Storing identity information on a blockchain network will help the government and public prevent identity theft and boost the technology to gain mass confidence and reach mainstream adoption. Though blockchain is still in its developmental phase, the technology has immense possibilities to secure data stored.
The government might feel it is risky to adopt new technology for storing identity information. But as the current data security defence practices fail tremendously (based on identity theft facts and reports), so isn’t the risk of putting data on a blockchain network and believing a technology meant for data security worth it?
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