The Growing Threat of Identity Theft
In today’s interconnected world, our personal information seems to be everywhere. While technology simplifies many aspects of our lives—like paying bills and shopping online—it also provides hackers with new avenues to steal our identities. It’s like leaving the front door unlocked.
But don’t unplug from the digital world just yet! There are straightforward actions you can take to protect yourself. Let’s explore these defenses against digital thieves.
What is Identity Theft?
Identity theft occurs when someone steals your personal information and uses it without your permission for financial gain. This fraudulent activity has become increasingly prevalent in the United States over the past few decades. The COVID-19 pandemic amplified the problem, as online criminals targeted relief funds and unemployment benefits.
Even though the pandemic’s direct effects are waning, online theft continues, with hackers exploiting consumer spending and stealing personal data like credit card numbers, social media logins, and bank accounts. Once these criminals breach your security, they can use your stolen identity for various malicious purposes. The financial and personal damage of identity theft can be devastating, sometimes taking years to resolve.
Assessing Your Risk
[Consider taking an online quiz to assess your personal risk level.]
Preventing Identity Theft: A Comprehensive Guide
Fortunately, steps can be taken to prevent identity theft. Here’s a comprehensive list of protective measures:
Credit Freeze
Freezing your credit is one of the most effective ways to stop identity theft. With a credit freeze in place, no one—not even you—can open new accounts, apply for loans, or obtain a new credit card using your financial information.
Install Antivirus Software
Staying up-to-date with antivirus software is crucial to protect yourself. Regularly check for needed updates and install anti-keylogger software to prevent hackers from accessing your computer. For added protection, log out of accounts after finishing your session. Although it’s convenient to stay logged in, taking these small steps greatly reduces your risk of identity theft.
Prioritize Privacy on Social Media
Be cautious about what you share on social media. Thieves are constantly watching and collecting information. Set your privacy settings to their highest level and avoid sharing sensitive information like your exact birthday, address, or mother’s maiden name.
Secure Your Phone
Your phone holds a wealth of personal information, so keep it secure. Use passcodes, fingerprint scans, or facial recognition to protect access. Keep Bluetooth turned off when not in use. If you have an iPhone, register it with iCloud to allow remote wiping if it’s stolen.
Avoid Unsecured Wi-Fi
Resist the temptation to conduct financial transactions on unsecured public Wi-Fi networks, such as those in coffee shops. Anyone on the same open network can access your information. When banking online, wait until you’re on a secure network. Also, secure your home Wi-Fi with a strong password to prevent unauthorized access.
Change Passwords Regularly
Change passwords for your bank accounts, email, and social media every 90 days. Create strong passwords using a combination of uppercase and lowercase letters, numbers, and special characters. Aim for long passwords using phrases or a combination of random words. Use a unique password for each of your accounts.
Enable Two-Factor Authentication
Two-factor authentication adds an extra layer of security, becoming a standard practice online. It does add an extra step, but requires a six-digit verification code sent to a trusted device (phone, computer, etc.) to log into an account from a new device. This additional step can prevent hackers from stealing your data.
Monitor Your Bank Account Daily
Check your online bank account daily to identify any unusual charges. Immediately report any suspicious activity, as you’re the first line of defense against theft and fraud.
Secure Your Mail
Stealing mail from your mailbox is an easy form of identity theft, so don’t send important payments via postal mail. Opt for the post office or a USPS mailbox. Get mail out of your mailbox promptly. Thieves will often target credit card offers so shred these. Consider paperless billing to limit the amount of sensitive details sent to your home.
Beware of Phishing Scams
Never open emails that seem suspicious. Be cautious of subject lines and “From” addresses and avoid clicking links or opening attachments. Never provide personal or financial information in response to suspicious emails.
Protect Your Children’s Information
Unfortunately, even children can be victims of identity theft. Because they don’t use credit until their late teens, any theft may go undetected for a long period., You can check for a credit file by completing TransUnion’s free Child Identity Theft Inquiry form. If your child has an associated credit file, it means someone may have taken your child’s identity. Taking immediate action is crucial.
Watch for Data Breaches
Be aware of data breaches that can increase your risk, and take extra precautions if you’re notified of one.
Safeguard Your Social Security Card and Bank Account Numbers
Protect your Social Security card and number and debit card PINs. Do not carry your Social Security card in your wallet.
Monitor Your Medical History
Medical identity theft is a significant risk so monitor your medical bills and statements carefully.
Shred Sensitive Documents
Shred documents with personal information before disposal. Be certain to destroy any financial statements and other documents that might be used in identity theft.
Wipe Electronics Before Donating
Before donating old electronics, wipe the hard drive to remove all personal information. Free disk-wipe tools can be found easily online.
Opt Out of Credit Card Offers
Shred or opt out of unwanted prescreened credit card offers to prevent criminals from opening accounts in your name.
Review Your Credit Reports
Review your credit reports regularly and watch for unusual account activity. Get a free report from each of the three credit bureaus every year and check for these red flags:
- Inactive accounts with new activity
- Credit lines you didn’t open
- Incorrect personal information
- Accounts in good standing that have been transferred to collections
- Credit inquiries you didn’t apply for
Take immediate action if you find anything suspicious. You are entitled to dispute any incorrect information on your reports.
Reporting Identity Theft
If you suspect identity theft, contact the Federal Trade Commission (FTC) at 1-877-438-4338 or online to report it. Then, take detailed notes about any relevant conversations and written correspondence.
Get Expert Help
Even with safeguards in place, identity theft can happen. Consider Zander, a RamseyTrusted provider, for identity theft protection. They offer real-time monitoring of your information, full-service recovery assistance, and financial reimbursement of up to $1 million for stolen funds.
This information will help you keep your identity secure in an increasingly digital world.
