MyCRA is proud to be a partner for Cyber Security Awareness Week 2012, running this week from 12 to 15 June.  Awareness Week helps Australians understand cyber security risks as well as educating home and small business users on the simple steps they can take to protect their personal and financial information online. Today, we address the importance of cyber security for preventing bad credit history.

By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

Cyber Security Awareness Week 2012 is an Australian Government initiative, held annually in partnership with industry, community and consumer groups and state and territory governments. According to the Stay Smart Online website, cybersecurity awareness is more important than ever.

“Australians are increasingly relying on the internet in their everyday lives for banking, shopping, education and communication. It is, therefore, important that they are able to use the internet in a secure and confident manner. The government has established a range of initiatives to raise the awareness of Australian internet users about the importance of cybersecurity and the simple steps they can take to protect their personal and financial information online.”

One of the big risks for Australians is that their internet use will lead to fraudsters stealing their personal information for purposes of identity theft (now the fastest growing crime in Australia) and potentially fraud. The good credit rating of the victim could then be damaged.

If cyber-crooks are able to get their hands on enough personal information they may be able to construct a fake identity, which can lead to some serious credit fraud. Fraudsters have been known to go so far as to take out personal loans, credit cards and even mortgage homes in their victim’s name.

When the identity theft goes so far as to affect the credit file of the victim, the issues can be huge. Unfortunately fraudsters are never so kind as to pay this credit back, so the victim is often unaware of a stream of defaults run up against their name, until the apply for credit in their own right and are flat out refused.

For between 5 and 7 years identity theft victims can be locked out of credit while their credit rating shows up someone else’s defaults.

Unfortunately in the past it has not been easy for identity theft victims to prove they did not initiate the credit, particularly if they have no idea how they were duped in the first place.  Often this sophisticated type of fraud is instigated by overseas crime syndicates who don’t leave much of a trail, or even if they do, can’t be prosecuted easily.

But the ability to obtain credit is so crucial to functioning well in today’s society, that if the identity theft victim has also been a victim of credit fraud, they should make their clear credit rating a point worth fighting for.

Firstly, the victim should contact Police as soon as they are made aware of possible identity theft, they may even be able to prevent the credit fraud occurring. If it has already happened, a Police investigation and report will be a good starting point for proving the person did not initiate the credit in the first place.

Credit file repair can be difficult for the individual, but if there is an error on a person’s credit file it is worth pursuing. It can be made easier with the help of a credit repairer. A credit repairer has extensive knowledge of credit reporting legislation and how to apply the letter of the law to the credit file holder’s circumstances to ensure the best chance of having the listing or listings completely removed from the credit file if it has been placed unlawfully, for instance if the listing contains an error, is unjust or just shouldn’t be there.

The best thing people can do for themselves is to prevent that crime from happening in the first place. People can provide a safety buffer for themselves and their family around one of the main channels for fraudsters to enter our lives – the internet.

To start, people can follow these top tips provided by Cyber Security Awareness Week 2012 on how to stay safe online:

• Install and update your security software; set it to scan regularly.
• Turn on automatic updates on all your software, particularly your operating system and applications.
• Use strong passwords and different passwords for different uses.
• Stop and think before you click on links and attachments.
• Take care when transacting online – research the supplier and use a safe payment method.
• Only download “apps” from reputable publishers and read all permission requests.
• Regularly check your privacy settings on social networking sites.
• Stop and think before you post any photos or financial information online.
• Talk with your child about staying safe online, including on their smartphone or mobile device.
• Report or talk to someone if you feel uncomfortable or threatened online – download the Government’s Cybersafety  Help Button.

In addition, people can and should subscribe to the email notifications from Stay Smart Online Alert Service. The Stay Smart Online Alert Service is a free subscription based service that provides home users and small to medium enterprises with information on the latest computer network threats and vulnerabilities in simple, non-technical, easy to understand language. It also provides solutions to help manage these risks.

Also, people can look at securing different sections of their internet use in more depth with the help of Stay Smart Online’s key factsheets for online security.

They can also help raise awareness of the issue amongst their own group of family and friends and insist that anyone who has their personal information has a responsibility to keep it safe.

People should also check their credit file regularly, and act quickly on any discrepancies there – which can often be the first sign of identity theft. Copies of consumer and business credit files can be ordered from one or more of Australia’s credit reporting agencies, and are free for the credit file holder once per year.

Stay tuned for more information updates as Cyber Security Awareness Week unfolds.

Image above: Victor Habbick: www.FreeDigitalPhotos.net.