Protecting Yourself Against Identity Theft
Each year, more Americans fall victim to identity theft or fraud. In 2023, reported financial fraud losses exceeded $10 billion. As fraud becomes more frequent and sophisticated, it’s crucial to stay vigilant and protect your financial security.
One effective step is to freeze your credit. This prevents unauthorized access to your credit report and new account openings. To do this, create accounts with the three major credit bureaus: Equifax, Experian, and TransUnion. Once your accounts are set up, you can implement the freeze. When you need to apply for credit, simply log in to your accounts or call to request a temporary or permanent lift of the freeze. A temporary lift allows you to specify a timeframe for the “thaw,” after which the freeze automatically reactivates.
Freezing your credit is free and doesn’t affect your credit score. However, when freezing or unfreezing, you’ll need to verify your identity, often using a PIN provided by mail. It’s essential to keep this PIN safe, as losing it can make identity verification more challenging.
Beyond credit freezing, monitor your financial accounts closely. Consider using a credit-monitoring service, which can provide critical support if identity theft occurs. You can also set up fraud alerts, requiring creditors to contact you before making changes to your accounts or opening new ones.
Protecting your credit is just one aspect of identity theft prevention. Criminals can misuse your identity to open bank accounts, obtain passports, or receive medical treatment. Remaining vigilant about your credit, identity, and financial accounts is crucial, as criminals continually adapt to new technologies.
Many resources are available to help you protect yourself. Consulting a financial advisor can help you determine the best measures for your situation.
Katie Geery, MBA, CFP, APMA, CRPC, is a private wealth advisor and certified financial planner practitioner with Rise Private Wealth Management, a private wealth advisory practice of Ameriprise Financial Services, LLC in Bedford, NH. With six years of experience, she specializes in fee-based financial planning and asset management strategies. You can reach her at 603-606-4255 or [email protected].
