Identity theft is a serious crime that affects millions of people each year. As technology advances, thieves are finding new ways to steal personal information and open accounts in your name. However, there are steps you can take to minimize your risk and protect your identity.
How Identity Theft Occurs
Identity theft occurs when someone obtains your personal information and uses it to commit fraud or other crimes. Common ways identity theft happens include:
-
Data breaches – When companies that store personal data experience a security breach, hackers can access the information of millions of customers. Some major data breaches in recent years include Equifax, Yahoo, and Target.
-
Phishing scams – Criminals send fake emails or texts pretending to be from legitimate companies to trick you into revealing personal information like account numbers and passwords.
-
Skimming devices – Thieves install skimming devices on ATMs, gas pumps, and other machines to steal debit/credit card information when you swipe your card.
-
Dumpster diving – Thieves rummage through trash looking for documents with personal information like credit card offers, bank statements, etc.
-
Stealing wallets and mail – Wallets and mail often contain sensitive information that thieves can use like driver’s licenses, financial documents, etc.
Protecting Your Personal Information
Fortunately, there are steps you can take to better safeguard your personal data:
Be vigilant about sharing information
-
Avoid oversharing personal information on social media sites. Don’t post full birthdays, addresses, maiden names, etc.
-
Shred documents containing sensitive data before throwing them out.
-
Only provide personal information on secure websites and never via email.
Strengthen your security
-
Use strong passwords – Mix of letters, numbers and symbols that are hard to guess. Consider using a password manager.
-
Enable two-factor authentication – Requires an extra step to verify identity like a code sent to your phone.
-
Lock financial accounts – Many banks allow you to lock debit/credit cards when not in use.
Monitor your accounts and credit reports
-
Review statements – Watch for any suspicious charges or account activity. Report anything strange to your bank immediately.
-
Check credit reports – Get free annual credit reports from Equifax, Experian and TransUnion to check for accounts you didn’t open.
-
Consider credit freezes – Freezes restrict access to your credit report, making it harder for thieves to open new accounts.
What To Do If You Suspect Identity Theft
If you discover signs of identity theft, act quickly to limit the damage:
-
Contact banks and credit card companies – Report fraudulent charges and accounts opened in your name. Cancel stolen cards and get new ones reissued.
-
Change account passwords and security questions – Update logins, passcodes and security questions/answers for safety.
-
Place a fraud alert – Alerts require creditors to verify your identity before opening new accounts.
-
File an identity theft report – File a report with the FTC and your local police department. This helps when disputing fraudulent accounts.
-
Check credit reports – Look for unauthorized accounts and incorrect information resulting from identity theft that you’ll need to dispute.
-
Consider a credit freeze – Freezing your credit reports can prevent thieves from opening any more accounts.
Being proactive about identity theft protection goes a long way. Monitor your personal information closely, strengthen your security practices, and act swiftly if you suspect any fraudulent activity. With proper vigilance, you can help minimize your risk.
