As technology becomes more advanced and fraudsters continue to evolve to be more savvy and sophisticated, the threat of identity theft becomes more urgent. In fact, the Federal Trade Commission reported that in 2023 there were more than 1 million reports of identity theft received through the FTC’s IdentityTheft.gov website. This isn’t too surprising considering the Identity Theft Resource Center reported that there were over 3,000 data breaches in 2023, a 78% increase from 2022. Additionally, they recently found that there were over 1 billion data breach victims in the first half of 2024, a staggering 490% increase compared to the first half of 2023.
Identity theft occurs when someone steals your personal information and uses it without your permission. Criminals can use your information to access your financial accounts, open bank and credit card accounts, file tax returns, and more.
Identity theft is a serious threat, but fortunately, there are steps you can take to protect yourself from becoming a victim of this type of fraud.
Prioritize and Protect Your Passwords
As a first step, always password-protect your devices like your smartphone and laptop. This is crucial for ensuring that criminals cannot access your important accounts easily if they get ahold of one of your devices.
When it comes to creating passwords for all your important accounts, whether it’s a financial, health, or personal email account, it’s crucial that you create new passwords for all accounts. This matters because if you re-use the same password across multiple accounts and criminals get ahold of the password, they can access all accounts and potentially wreak havoc on your personal and financial life. A password manager can create unique passwords for all your online accounts and securely store them so you don’t have to remember them all on your own.
Keep Your Personal Documents Safe
One way to ensure fraudsters don’t get a hold of your personal information is to make sure you are safeguarding your important documents. One of the most important documents to keep safe is your social security card. Avoid carrying your social security card on you at all costs, and instead, leave it in a safe place at home. If a criminal gets access to your social security number, it can quickly open the door to identity theft.
When it comes to other important documents, there are a few things you can do to ensure you are keeping your personal information as safe as possible. Make sure you check your mail every day so thieves can’t successfully target your mailbox. If you are throwing away old documents, make sure any paper with personal information is shredded before it goes into the trash bin. Lastly, consider signing up for electronic statements from financial institutions instead of receiving paper documents.
Be Cautious Of Phishing Attempts
Phishing is a type of scam that uses fake text messages, emails, phone calls, or other types of communication to trick victims into revealing sensitive information in order to steal your identity. The fraudster’s end goal is to make you click on a link or open an attachment that looks to be from a real company so you will share your personal information. This could look like sending you a fake link from your bank via email and urging you to log in and check your account. Once you use your login credentials, the scammer can gain access to your financial account.
To combat these types of attacks, never click on a link or open an attachment from someone or a company that you do not recognize or that looks suspicious. Instead, identify the correct phone number by looking at physical statements or by logging in to your account through a verified portal and call or email the company separately.
Watch Out for Fake Phone Calls
Criminals will try a multitude of ways to defraud you, including personally calling you to pretend that they are with a company you are associated with. In a scam like this, they might pretend they are from your bank or credit card company and ask you to verify your information in order to proceed with the call.
Never provide information over the phone. Like phishing, it is best to ask for the person’s name and where they are calling from, hang up, and call the company back via the phone number listed on their website in order to verify if the call was legitimate.
Be Careful Using Public Wi-Fi
Criminals can target you through public Wi-Fi use if it is not a secure network. Double check that you are connecting to a legitimate public Wi-Fi network (many shops will have this listed somewhere in their store), avoid sharing sensitive personal information while in a public setting and consider using a virtual private network (VPN) to keep your information safe.
Limit What You Share on Social Media
When it comes to social media, the less you share, the safer you are. Fraudsters will lurk just about anywhere to steal your personal information, including your social media profiles. Limit what you share, like your full name, address, photos of personal documents, anything related to your financial accounts, and your full birthday. Ideally, keep your profile private and only allow followers who you know.
Check Your Credit Reports Often
Regularly checking your credit reports is not just a good financial habit but a good security habit as well. Staying updated on what is in your reports will help you spot any suspicious activity, like new accounts you don’t recognize, and help you act quickly to combat any further fraud. You can check your credit report for free at www.Experian.com and get a free credit report from each of the three major credit bureaus by visiting AnnualCreditReport.com.
Know Next Steps if You’re a Victim of Identity Theft
When it comes to mitigating the effects of identity theft, time is of the essence. It is important to be proactive and address identity theft as soon as it occurs. There are a few important actions to take immediately:
- File an identity theft report with your local police department.
- Contact the security or fraud departments of each business where an account was opened or charged without your knowledge and inform them of the fraud.
- Check your credit report with all three credit bureaus – Experian, Equifax, and TransUnion – and review the information to ensure that there is no incorrect or suspicious information or accounts.
- At Experian, you can enroll in a free membership for IdentityWorks that provides benefits such as access to your Experian credit report, credit monitoring and dark web reports. You can sign up at www.Experian.com.
- Place a temporary one-year fraud alert on your credit file so creditors can verify your identity before processing credit applications. This will help prevent criminals from opening credit accounts in your name.
- Continue to monitor your credit report to catch fraudulent activity and minimize any damage.
- Always take advantage of an offer of free identity theft protection resources a breached company may offer you after they have had a security incident. Read the notification letter carefully and follow all of the instructions.
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Identity theft can create a variety of problems for your finances and your life. Fortunately, there are moves you can make to protect yourself from becoming a victim by being proactive and taking steps to keep your personal and financial information safe.
Michael Bruemmer is the Head of Global Data Breach Resolution at Experian.
By Michael Bruemmer
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