Identity theft is a crime that affects millions of people each year, with far-reaching consequences that can devastate victims financially and emotionally. According to the most recent data from the Federal Trade Commission, there are approximately 1.1 million reports of identity theft in annually.
Credit card fraud is the most common type of identity theft, followed closely by other account takeovers and loan or lease fraud. Government documents or benefits fraud, which had spiked during the pandemic, remains a substantial concern.
If you've been an identity or data theft victim, here's what you need to know.
If It Happens to You
Discovering that you're a victim of identity theft can be a frightening and overwhelming experience. However, swift action can significantly mitigate the damage. Acting quickly and methodically is crucial if you find yourself in this situation.
Here are a few key things to keep in mind:
- Secure your credit. Immediately contact the "Big Three" credit reporting agencies (Experian, TransUnion, and Equifax) and have a fraud alert attached to your credit report. This alert makes it more difficult for thieves to open new accounts in your name, as creditors must take extra steps to verify your identity before granting credit.
- Consider placing a security freeze on your credit reports. This measure makes it significantly harder for fraudsters to open new accounts in your name, as most creditors need to see your credit report before approving new accounts.
- Alert financial institutions. Contact all your credit card issuers, banks, and other financial institutions and alert them to the theft. They can help monitor your accounts for suspicious activity and may be able to reverse fraudulent charges.
- Contact the authorities. While your local police department may only be able to offer a little practical help, contacting them establishes that you are actively seeking to address the problem. You can also file a report with the Fair Trade Commission (FTC).
- Monitor your credit reports. You can access your credit reports annually at no charge through the AnnualCreditReport.com website. Many credit cards offer credit monitoring at no charge.
- Monitor your accounts. Most financial institutions offer services that notify you of any activity on your accounts, such as password changes, address changes, or unusual charges. Enable these alerts to stay informed about any potential fraudulent activity.
- Update your digital security. Use different, difficult-to-crack passwords for each account (rather than relying on the same handful of passwords for all accounts). Add multi-factor authentication whenever possible so that a code sent to you by email or text is required to access your accounts.
- Keep a close eye on your health care records. Medical identity theft is a growing area of concern. Regularly review your health insurer's benefit statements. Look for treatments or services you didn't receive, which could indicate someone is using your identity to obtain medical care.
Long-Term Protection Strategies
While responding to identity theft is crucial, preventing it from happening in the first place is even more critical. Here are some comprehensive strategies to protect your identity in the long term:
- Strong password practices. Use complex, unique passwords for each of your accounts. A password manager can be invaluable in creating and storing these securely. As mentioned above, enable multi-factor authentication wherever possible, especially for financial and email accounts.
- Be vigilant about phishing attempts. Cybercriminals often use deceptive emails, text messages, or websites to trick you into revealing sensitive information. Don't click on suspicious links or download attachments from unknown sources. If an email or message seems off, even if it appears from a known contact or company, verify its authenticity through other means before responding or taking action.
- Regularly monitor your accounts and credit reports. Check your financial accounts regularly for unauthorized charges. Set calendar reminders every four months to access one of your credit reports on the AnnualCreditReport.com website.
- Protect your personal information. Be cautious about sharing personal details, especially your Social Security number. Only provide such information when absolutely necessary and verify the request's legitimacy.
- Keep your devices and software up-to-date. Regularly update your devices' operating systems and applications to ensure you have the latest security patches. Outdated software can have vulnerabilities that cybercriminals can exploit.
- Be mindful of your social media presence. Limit the personal information you share on social platforms, as identity thieves can use this information to answer security questions or impersonate you.
The Takeaway
By taking swift action if you become a victim and implementing robust prevention strategies, you can significantly reduce your risk and protect your financial well-being.
Remember that identity theft protection is an ongoing process. Stay informed about new threats and protection strategies, and regularly review your financial and personal information for any signs of suspicious activity.
Be sure to explore the identity theft resources in the member library for more detailed information on specific steps you can take if you're a victim.
