Preventing Identity Theft in the Age of Big Data

Identity theft is a serious concern in the modern digital age. As more of our personal information exists online, criminals have more opportunities to steal and exploit our data. However, there are steps individuals can take to reduce their risk of identity theft.

Understand the Threat Landscape

The internet has allowed the creation of vast databases of personal information. Many companies and organizations now store things like names, addresses, birth dates, and Social Security numbers digitally. This data can potentially be accessed and misused by identity thieves in a variety of ways:

• Data breaches – When companies that store personal data suffer a cyberattack or data breach, identity thieves may gain access to millions of people’s information at once. Major data breaches have occurred at companies like Equifax, Yahoo, and many others.

• Phishing scams – Identity thieves may pose as legitimate companies or sources via email or websites to trick individuals into revealing personal information like passwords or credit card numbers. Phishing scams are a common tactic.

• Social media scams – Social networks contain a wealth of personal information, and criminals leverage these sites to gather details for identity theft. Friending scams, fake account scams, and scams involving messaging apps on networks like Facebook are prevalent.

• Dumpster diving – Identity thieves may physically search through trash looking for documents containing personal information. Discarded receipts, credit card offers, bank statements, and more can be targeted.

• Skimming devices – Thieves may attach skimming devices to ATMs or gas pumps to capture debit/credit card numbers. The information is then exploited for financial gain.

Protect Your Personal Information

Reducing the amount of sensitive personal information available to criminals online and offline can help lower your risks of identity theft:

• Limit online sharing – Be cautious about sharing personal details publicly on social media sites. Consider utilizing privacy settings to limit visibility. Also be wary of sharing information in response to unsolicited emails.

• Protect your devices – Use strong passwords/passcodes on mobile devices and computers. Install antivirus software. Use a firewall and encrypted internet connections. Update software regularly.

• Shred documents – Shred receipts, bank statements, credit offers, insurance forms, and other documents containing sensitive data rather than simply tossing them in the trash.

• Watch billing cycles – Monitor credit card and bank account bills for any unauthorized charges or suspicious activity. Immediately report anything strange to your financial institutions.

• Freeze credit reports – Placing a credit freeze restricts access to your credit report, making it harder for identity thieves to open fraudulent accounts in your name. Freezing credit reports does not affect your existing accounts.

• Limit use of SSN – Do not carry your Social Security card in your wallet. Only provide your SSN when absolutely necessary, and ask how it will be protected.

Practice Safe Online Habits

Your daily online activities like emailing, social media, shopping, and banking also open up potential avenues for identity thieves. But some simple precautions can help secure your data:

• Use secure WiFi – Only access personal accounts and do online shopping on secure WiFi networks that require passwords, like at home. Avoid public WiFi hotspots which can expose your information.

• Look for “HTTPS” – When visiting websites, verify they use HTTPS encryption by looking for “https://” at the start of the URL or a padlock icon in the browser bar. Information you submit on HTTP sites is visible.

• Avoid unsolicited links – Exercise caution before clicking on links in emails, posts, messages, popups, or unfamiliar websites. Verify the source is legitimate first, as it may direct to phishing sites.

• Use strong passwords – Create complex, unique passwords for every account using combinations of upper/lowercase letters, numbers, and symbols. Avoid common words, phrases, or personal info. Using a password manager helps.

• Limit info on payments – Do not write billing account numbers on the outside of envelopes or mail payments from home mailboxes. Drop them at Post Office boxes instead. Leave credit card numbers off of as many forms as possible.

Monitor Your Accounts and Credit Reports

Keeping a close eye on your financial accounts and credit reports regularly can help you identify any signs of identity theft early on:

• Review charge card and bank statements closely each month, watching for unknown charges or withdrawals. Report anything suspicious to the provider immediately to dispute the activity.

• Order a free copy of your credit report from each of the three major credit bureaus every four months, staggered throughout the year. Review closely for unknown accounts or inquiries.

• Consider enrolling in credit monitoring services that actively watch for and notify you about changes to your credit reports or scores that may indicate identity theft issues.

• Monitor your medical records and benefits statements for inaccuracies that could suggest fraud such as false claims against your health insurance.

• Watch for notifications from companies, creditors, collection agencies, or the IRS regarding account changes, unpaid bills, or other suspicious items that you did not initiate.

Know Your Recovery Options

Even with precautions, identity theft can still happen. Make sure you know what steps to take if you do become a victim:

• Place fraud alerts – Contact the major credit bureaus to place fraud alerts on your credit reports to prevent thieves from opening more accounts easily.

• Close accounts – Contact banks, utilities, healthcare providers, credit card companies, etc. that may be affected to report identity theft, close compromised accounts/cards, and open new secure accounts.

• File police reports – File reports with local police and the FTC documenting the identity theft. Get copies to submit to creditors.

• Dispute fraudulent items – Use police reports, letters, affidavits, and other documents to dispute any fraudulent accounts/charges with banks, creditors, collection agencies, utilities, and credit bureaus.

Staying vigilant to protect your personal data and monitor for signs of misuse can significantly minimize the impacts of identity theft in this era of extensive digital information. But prompt action is key if you do become a victim. With caution and good practices, your risks can be reduced.