The Rising Threat of Identity Theft
It’s a fact: we live in a digital world where our personal information is spread far and wide. While technology makes it easier than ever to manage finances, shop, and connect with others, it also opens doors for identity thieves.
But don’t log off just yet! There are simple, effective strategies to fortify your digital defenses and keep your information safe from those who would misuse it. Let’s explore how.
What Exactly Is Identity Theft?
Identity theft occurs when someone steals your personal information and uses it without your permission for their own financial benefit. It’s a form of fraud, and in the United States, it has become a serious and growing problem. Hackers specifically targeted relief checks and unemployment benefits during the COVID-19 pandemic. Now, they’re setting their sights on post-pandemic consumer spending, exploiting vulnerabilities such as credit card numbers, social media logins, and bank accounts. Once they break through your security, they can wreak havoc on your financial well-being.
The process of resolving identity theft can take years to untangle both the financial and personal damage it causes.
Guarding Against Identity Theft: Your Action Plan
The good news is that you can prevent identity theft! Here’s a guide to help you protect yourself:
1. Freeze Your Credit
Freezing your credit is one of the most effective ways to stop identity theft in its tracks. A credit freeze makes it significantly harder for someone to open new accounts, apply for loans, or obtain new credit cards using your information.
- Action: Freeze your credit with each of the major credit bureaus.
2. Install Antivirus Software
If you don’t keep your antivirus software up to date, you become an easy target for online thieves. Antivirus software helps detect and remove malicious software that could compromise your information. Moreover, regularly check for updates and install anti-keylogger software.
- Action: Update your antivirus software regularly and consider adding anti-keylogger software.
3. Make Privacy a Priority on Social Media
People often share details about their lives on social media, sometimes without considering the privacy implications. Thieves are watching, looking for useful details. To improve your security:
- Action: Maximize your privacy settings. Avoid sharing sensitive personal details.
4. Keep Your Phone Secure
Your phone now stores a lot of your personal information. Safeguard it by using a passcode, fingerprint scan, or facial recognition. Also, keep your Bluetooth turned off when you’re not using it. You can enable remote wiping and, if you have an iPhone, register it with iCloud.
- Action: Use strong phone security features, and keep your phone secure.
5. Never Use Unsecured Wi-Fi
Public Wi-Fi networks are not secure. Anyone on the same network could potentially access your information. Avoid using public Wi-Fi for sensitive activities.
- Action: Avoid using unsecured, public Wi-Fi for sensitive activities, such as accessing financial accounts.
6. Change Your Passwords Regularly
Make it a habit to change the passwords for your bank accounts, email, and social media accounts every 90 days. For each account, create strong passwords by using a combination of uppercase and lowercase letters, numbers, and special characters. Use a different password for each account. A phrase will make the password even more secure.
- Action: Create strong, unique passwords and change them regularly.
7. Enable Two-Factor Authentication
Two-factor authentication adds an extra layer of security. If someone tries to sign in to your account from an unknown device, they’ll need to provide a verification code sent to a trusted device. This makes it much harder for unauthorized individuals to gain access.
- Action: Enable two-factor authentication on all devices and accounts.
8. Monitor Your Bank Account Daily
Monitor your bank accounts daily and look for any unusual charges, even though banks have systems that watch your spending patterns. This practice will help you catch any potential fraud early on.
- Action: Check your online bank account every day.
9. Protect Your Mail
Never send bill payments through your mailbox. Mail theft is a major source of identity theft. To keep your information safe, use the post office or USPS mailbox. Switch to paperless billing to further reduce risk.
- Action: Don’t send bills from your mailbox and switch to paperless billing.
10. Avoid Phishing Scams
Be cautious of suspicious emails. Read the subject lines and sender addresses carefully before opening anything, or clicking any links or attachments. If something seems off, it probably is.
- Action: Be wary of suspicious emails and never click on links or attachments from unknown sources.
11. Safeguard Children’s Information
Children can be targets of identity theft, so it’s important to protect their information as well.
- Action: Watch out for child identity theft. Get a report if you suspect suspicious activity.
12. Stay Informed of Data Breaches
If you learn about a data breach, pay closer attention to your accounts and information. Take steps to protect yourself from potential future hacks using the above tips.
- Action: Pay attention to any data breach notifications that might affect you.
13. Protect Your Social Security Information
Protect your Social Security card and other forms of identification to prevent identity theft. Never keep your Social Security card in your wallet, and make sure your debit card PIN isn’t written down anywhere.
- Action: Protect your Social Security card and your bank account numbers.
14. Monitor Medical History
Safeguard your health information as carefully as any other form of identification. Review your medical bills and insurance statements regularly to make sure that there is no fraud.
- Action: Monitor your medical history and bills.
15. Shred Sensitive Documents
Shred any documents containing personal information before throwing them away. If you don’t want them to get into the wrong hands, it is essential to shred documents.
- Action: Shred any documents containing personal information.
16. Wipe Electronics Before Donating
Before you donate or sell any of your old electronic devices, make sure you completely wipe the hard drive of all personal information. Disk-wipe tools are available online, and can help ensure your data is permanently gone.
- Action: Wipe all your electronics before donating or selling them.
17. Opt Out of Credit Offers
Prescreened credit card offers can be intercepted by criminals and used to open new accounts, committing identity theft. Opt out of receiving these offers to reduce your risk.
- Action: Opt out of prescreened credit card offers.
18. Review Your Credit Reports
Obtain a free credit report from each of the three credit bureaus every year to monitor any potentially suspicious activity. Review your credit reports regularly and dispute any incorrect information.
- Action: Request and review your credit reports regularly.
What to Do If You Suspect Identity Theft
Even with precautions, identity theft can occur. Contact the Federal Trade Commission (FTC) to report identity theft. They’ll guide you through the process. If your identity has been stolen, you may want to seek expert help.
