Identity Theft: Steps To Protect Yourself From And Be Safe

Any fraud, scam, or other criminal activity that leads to the loss of personal information—such as passwords, bank account information, credit card numbers, Social Security numbers, and health identification numbers—and uses that information to perpetrate fraud and other crimes without your consent is known as identity theft. That’s all there is to know from this guide.

What is Identity Theft?

Identity theft occurs when someone impersonates you or steals from you using your private information. Identity thieves can empty your bank and investment accounts, create new credit accounts, obtain utility services, obtain your tax refund, obtain medical care using your insurance information, and provide your name and address to the authorities upon their apprehension.

Regular security lapses indicate that your data might already be compromised. It becomes sense to take precautions in this new world to stop nefarious individuals from using your data and wrecking your finances.

Identity theft types and warning indicators

Following the acquisition of your information, a fraudster may use it in the following ways:

Identity theft via credit

When a criminal uses your personal information, including your Social Security number and date of birth, to apply for a new credit line, it is known as credit identity theft.

Warning signs: Your credit reports may show an account you are unfamiliar with or an unexpected change in your credit scores. A court judgment or debt collection notice could be sent to you. Freezing your credit is the best method to avoid it.

Identity theft involving minors

Thieves make use of children’s identities to apply for credit under their names. Frequently, it remains undiscovered until the victim applies for credit cards or loans for education.

Warning signs: Look into whether your child is receiving calls concerning late payments or debt collecting, or if they are receiving offers of credit cards. To stop it, you can freeze your child’s credit.

Theft of a fake identity

The act of creating a false consumer using a patchwork of identity details, such as a Social Security number that is not yet in the credit agencies’ database or one that is made up, along with a name and address, is known as synthetic identity theft. After that, they apply for credit cards and loans and, as their credit limits rise, frequently make payments for years. When all of the cards are used, there is a “bust out,” and the thieves vanish.

Signs to watch out for If you attempt to freeze your child’s credit and find out their Social Security number is already being used. It is frequently not detected until the child submits a student loan application. Since thieves occasionally fabricate and use Social Security numbers even before they are assigned, it is not always avoidable.

Identity theft by taxpayers

Occasionally, dishonest people file tax returns using your Social Security number in an attempt to obtain your tax credit or refund.

Warning indicators include being unable to e-file because someone else has already filed under your Social Security number, receiving an IRS notice or letter mentioning behavior you were unaware of, or IRS records indicating you worked for a company you did not. Filing early will help you beat crooks to filing in your name, and some jurisdictions provide six-digit identity protection PINs (after a thorough check) for further security.

Medical identity theft

The act of obtaining medical services using someone else’s identity is known as medical identity theft. It’s particularly dangerous since it has the potential to jumble up people’s medical records, providing physicians and hospitals with inaccurate information when making judgments on patient treatment.

Unrecognized claims or payments on your insurance explanation of benefits are indicators that someone is abusing your health benefits. To guarantee that the data in your records is authentic, you need to let your medical team and insurance provider know if you have been a victim.

Account takeover

Criminals exploit personal information to gain access to your financial accounts and then change passwords or addresses, preventing you from accessing them.

Warning flags include an email, letter, or text from your financial institution referencing an action (such as a password or email change) or transaction that you do not recognize.

Criminal Identity Theft

Criminal identity theft happens when a person provides law enforcement with another person’s name and address during an arrest or investigation. This is frequently accomplished with fraudulent identity, such as a forged driver’s license.

Warning signs: You might be refused a job or promotion due to information discovered in a background check, or you might be arrested by a police officer for reasons you don’t understand.

Strategies to stop identity theft

It’s improbable that you will discover a foolproof method to stop identity theft, and monitoring systems only alert you when anything goes wrong. However, you can take 11 steps to significantly increase the difficulty for identity thieves.

Put your credit on hold.

By limiting access to your information, freezing your credit with Equifax, Experian, and TransUnion prevents the opening of new credit files. Freezing and unfreezing your credit is a great way to prevent identity theft by offering the strongest defense against fraudulent accounts opened with your personal information.

Be careful with your Social Security number.

The master key to your personal information is your Social Security number. Try your best to keep it safe. Ask why and how your number will be protected if you are requested for it. Keep your card hidden from sight. Keep documents holding your Social Security number safe or destroy them.

Recognize spoofing and phishing attempts.

Phone calls from scammers may seem to be from companies or the government, and emails that seem authentic may be attempts to obtain personal data. Instead of replying to a phone or email, initiate a callback or send a return email from a known entity, such as the official website. And be vigilant of attachments, as many include malware.

Use strong passwords, and include an authentication step.

Using a password manager, create and save unique, complicated passwords for each of your accounts. It is best to never reuse a password. Installing an authenticator software will lower your risk. Your mother’s maiden name and the name of your pet are easily searchable, so don’t rely on security questions to safeguard your accounts. Take caution in what you share on social media to prevent giving away vital details or giving away your answer to security questions.

Put alerts to use

When there are transactions on your accounts, many financial institutions may send you an email or SMS. Enroll to get access to information about the usage of your credit cards, including when and where they are used, as well as when deposits or withdrawals are made from bank accounts.

Pay attention to your mailbox.

One of the simplest ways for an identity to be stolen is through stolen mail. If you are out of town, request that your mail be held. Have a look at a lockable mailbox that has been authorized by the USPS. To detect any missing items, you can receive a preview of your mail by enrolling in the USPS’s Informed Delivery program.

Shred everything, everything, everything.

It is not appropriate for anyone to find credit card, bank, or investment statements among your junk. Additionally, shred unsolicited correspondence, particularly credit offers that have been preapproved.

Employ a virtual wallet.

Use a digital wallet, an app that houses secure digital credit and debit card versions, for making payments online or in-store. With a compatible checkout terminal, you can use it for online shopping. Security is increased by tokenization and encryption. Plus, there are reduced health hazards associated with contactless purchases.

Safeguard your mobile gadgets.
Make use of passwords when using your tech. To bank on your mobile device, use a banking app instead of a browser.

Regularly review your credit reports

Weekly free credit reports are available to consumers via AnnualCreditReport.com from the three major credit reporting bureaus. Verify that accounts are being reported correctly, and keep an eye out for any indications of fraud, such as accounts you are unfamiliar with. To get updates when there are changes, you may also register for a free credit report and score with NerdWallet.

Observe medical and financial statements.

Examine the financial records. Ensure that you are aware of each transaction. Recognize deadlines and give us a call to inquire if you do not receive the anticipated bill. Examine “explanation of benefits” statements to confirm that you understand the services offered to prevent medical fraud.

Methods via which identity theft occurs

Some of the ways that your personal information may be compromised are as follows:

Wallet lost or stolen

All of the information in your wallet could be accessed by someone else if it is lost or stolen.

Don’t retain a list of passwords and access codes in your wallet, nor should you carry more credit cards than you use or your Social Security card.

Make copies of both the front and back of your credit cards and store them somewhere safe so you can quickly contact the issuer if a card or your wallet is misplaced. You can “turn off” a lost card temporarily with certain issuers, but you’ll need to cancel and acquire a new card from others.

The theft of a mailbox

The majority of your mail just stops coming to you when someone takes it or forwards it to another address.

Get Informed Delivery from USPS by enrolling. To help you identify any missing products, you will receive an email containing photographs of the items that should be shipped to you.

Select a secure mailbox, then quickly get your mail.

Employing free WiFi

Using free public Wi-Fi puts you at risk of having hackers view your activities.
For important transactions like banking or shopping, avoid using public Wi-Fi.
To establish a secure connection if you decide to use public Wi-Fi, use a virtual private network provider.

Hacks of data

Databases containing private data are breached by hackers. A data leak has something to do with almost everyone.

Consider that your data is already public knowledge and adopt appropriate security measures.

Read bank and insurance papers carefully, and keep a close eye on your credit scores—any sudden changes could be a red flag. Keep an eye on your credit reports, paying particular attention to any new accounts or inquiries brought on by credit applications.

Switching SIM cards

When someone hijacks your phone number, this is what happens. You might receive a notification that your phone has been activated, or you might cease receiving calls and texts.

Create a password or PIN for your mobile account.

If an account contains critical financial data, think about utilizing an authentication app.

Spoofing or phishing

Some scammers attempt to obtain personal information from you by sending what appears to be an official email, including credit card numbers, Social Security numbers, and banking details. Spoofing entails similarly using caller ID to make a number appear to be from a reputable business or government organization.

Never provide personal information in response to a call or email.

Utilize the contact details you have acquired from a reliable source—like the website of your bank—to confirm the legitimacy of the call or email.

Sweeping

Skimming is the practice of obtaining credit card information when a credit card is used at a physical place, like an ATM or petrol pump, usually from a tiny device.

Utilize cards with chips, as they offer additional security.

If at all possible, pay inside the petrol station as unmonitored payment locations are more likely to be the location of skimming devices.

By configuring email or text notifications to notify you when your credit cards are used, you can identify fraudulent behavior early on. Inform the card issuer right away if your authorization is not being used.

Scams over the phone

It’s possible to hear that you’ve won something or even that you could end up in jail. The caller says that to confirm your identification or to find out where to transfer your money, they require your personal, banking, or credit information.

Never divulge private information over the phone.

Recognize typical phone scams. For instance, the IRS never calls, emails, or posts on social media to ask for personal or financial information from taxpayers. Nor does it threaten to jail or sue them.

Glancing back at yourself

Simply by observing your fingers as you enter a password, fraudsters can figure out what it is. When you shop online in public, your credit card information can be captured on camera using a smartphone. A firm can expose confidential information to the public.

Keep an eye on your surroundings.
Refrain from leaving cards in visible areas.
When entering codes or passwords, keep your hand covered.

Malware

Visiting a compromised website or opening an email attachment might lead to the installation of malicious software, including keyloggers, on your computer. That tracks every keystroke, which is exactly what it sounds like, and gives hackers access to account numbers, passwords, and other information.

Use caution when visiting websites and clicking on attachments or links in emails.
Employ a password manager to save yourself from entering your login information.

How to file a report in case of identity theft

A one-stop resource for information and reporting identity theft is the FTC’s IdentityTheft.gov. To create a recovery plan, start with that website and adhere to its instructions. The Postal Service, the credit bureaus, and your local police department may also need to be contacted. The IRS offers a phone number for identity theft at 800-908-4490 in addition to a website with a taxpayer guide on identity theft.

If your credit card was stolen, misplaced, or used without your knowledge, you can also contact your credit card issuer directly. Get in touch with your health insurer and any concerned providers if it seems like someone else is using your health benefit. This will ensure that your medical history is kept separate from that of the other person.

What occurs when you file a report of identity theft?

The inquiry and procedure of getting your good name back on track begins when you report identity theft. Exactly what has to be done will depend on the kind of identity theft.

You can resume your business as credit card providers typically replace the cards with new ones that have a different number. Theft of benefits or taxpayer identity theft is usually resolved more slowly.

No matter what kind of identity theft you encounter, be sure to save relevant emails and take thorough notes during phone calls.

Which identity theft protection service is the best?

Identity theft protection services alert you when your data has been compromised by hackers or is in danger of being misused. They might also help you through the process of clearing the mess and regaining your identity if you are the victim of identity theft, as well as pay you for any expenses.

If you’re currently doing everything you can to safeguard your identity or don’t have the time, you might want to think about using an identity theft protection service. Protections differ, but most include additional ways to safeguard your privacy and other services. The ideal paid service matches your budget while yet providing the coverage you require.

Conclusion

Identity theft can cause a range of financial issues. However, you may protect yourself from becoming a victim of identity theft by taking the necessary steps, such as safeguarding your personal and financial information and frequently examining your credit reports.