Let’s take a closer look at what constitutes identity theft, and explore 10 practical ways to help protect yourself.
What Is Identity Theft?
Identity theft happens when someone uses your personal information without your permission. A criminal might use your name, Social Security number, financial account information, or other details to open an account, make purchases, file a tax return, or commit other types of fraud.How to Help Prevent Identity Theft
While it’s impossible to prevent identity theft 100% of the time, taking the following steps can help lower your risk and make suspicious activity easier to spot.1. Share Personal Information Carefully
Be cautious when someone asks for your Social Security number, account number, password, PIN, or security code.
Calls, emails, and text messages can appear to come from a bank, government agency, or familiar company. However, it’s important to remember that phone numbers, email addresses, and logos can easily be faked.
If you receive an unexpected request for sensitive information, do not respond or use the contact information in the message. Instead, reach out to the organization through its official website, mobile app, or a verified phone number.
2. Use Strong, Unique Passwords
Create a different password for each of your online accounts, especially your email, financial, and social media accounts. If one of your passwords is ever exposed in a data breach, you don’t want criminals using it to access your other accounts.
Your passwords should be long, random, and hard to guess. A password manager can create and securely store unique passwords, so you don’t have to remember each one.
And remember to change your password immediately if you have reason to believe it was stolen, exposed, or used without your permission.
3. Turn On Multifactor Authentication
Multifactor authentication, or MFA, adds another level of security to your online logins. When MFA is enabled, you’ll need to complete an additional form of verification along with entering your password. Depending on your settings, you might have to enter a one-time passcode received via text or email, or approve the login through an authenticator app.
MFA adds an extra layer of protection if someone obtains your password. However, it's important to remain vigilant. Never approve an MFA request you didn't initiate and never share a one-time passcode with someone else.
4. Watch for Phishing Scams
Phishing is when a scammer tries to trick you into sharing information, sending money, or opening a harmful link or attachment. It can be done via text message, email, or even a phone call.
Be careful any time you receive a message or phone call that creates fear or urgency. A scammer may claim that your account has been locked, you owe money, or you must act right away, but this is designed to panic you into making a bad choice.
Instead of responding, close the message or hang up the phone and contact the company directly using a verified method. You can call the company’s publicly listed phone number or contact them through their official website to verify whether the communication was legitimate.
Sometimes, scammers go the extra mile to make a message or phone call seem like it’s from someone you know. If anything seems unusual or out of character, hang up or close the message and contact that person directly using a method you know is legitimate.
5. Monitor Your Financial Accounts
Check your bank and credit card accounts often to ensure there aren’t any transactions or account changes you don’t recognize.
Online and mobile banking make it easy to review your account activity. Many financial institutions also allow you to set up alerts for large transactions, withdrawals, low balances, password changes, and other account activity.
If you notice anything unusual, contact your financial institution right away. Acting quickly can help limit fraud and prevent further damage.
6. Review Your Credit Reports
Your credit reports show your credit accounts and recent credit inquiries. Reviewing them regularly can help you identify if someone has opened, or tried to open, new credit accounts in your name.
Many banks, like Bank5 Connect, give you free access to your credit report through Online Banking, but you can also request free copies from each of the three major credit bureaus. When reviewing your reports, look for unfamiliar accounts, incorrect personal information, or credit inquiries you don’t recognize.
If you find inaccurate or suspicious information, contact both the credit bureau and the company that reported the information as soon as possible.
7. Consider Freezing Your Credit
Many people think a credit freeze is only necessary after their identity is stolen, but it can also be a proactive step to help prevent identity theft. A credit freeze makes it harder for a criminal to open a new credit account in your name because it restricts access to your credit report, which lenders typically need to review before approving a new credit card or loan.
A credit freeze is free to put in place and doesn’t affect your credit score. If you later need to apply for credit, you can temporarily lift the freeze with the credit bureau.
While a credit freeze can help prevent someone from opening new accounts in your name, it doesn’t protect your existing accounts from fraudulent use. Continue to monitor your bank accounts, credit card accounts, and credit reports for suspicious activity.
8. Keep Your Devices Secure
Your phone, tablet, and computer can contain a significant amount of personal and financial information, making them attractive targets for criminals. Help protect your devices with a strong password, PIN, fingerprint, or facial recognition.
It’s also important to install software and security updates when they become available. These updates often fix security vulnerabilities that criminals could exploit to gain unauthorized access to your device or personal information.
You should also avoid accessing sensitive accounts using unsecured public Wi-Fi, as doing so may increase the risk of your data being intercepted. And always remember to fully erase your personal information from a device before selling, donating, or recycling it. You can typically do this by restoring the device to its factory settings.
9. Protect Your Mail and Paper Records
It’s important to remember that identity theft doesn’t only happen online. Always store documents containing personal or financial information in a secure place. When disposing of sensitive documents you no longer need, shred them first. This may include expired credit and debit cards, pre-approved credit card offers, and financial statements.
Protecting your mail is also important. Stolen mail can provide criminals with the information they need to commit identity theft. Collect your mail promptly, and if an expected financial statement, check, credit card, or government notice doesn’t arrive when it should, contact the sender.
10. Know the Warning Signs of Identity Theft
Possible signs that your identity has been stolen include:
- Bank or credit card transactions you don’t recognize
- Bills for accounts you didn’t open
- Unexpected changes to your credit report
- Missing mail or financial statements
- Notices about benefits or tax returns you did not request
- Login alerts, password changes, or address changes you didn’t make
While these warning signs don’t always mean your identity was stolen, they should never be ignored.
What Should You Do If Your Identity Is Stolen?
If you have reason to believe that your identity was stolen, it’s important to act right away. Contact your bank or credit card provider immediately if you notice any unusual activity in your accounts. If you discover unfamiliar accounts, credit inquiries, or other suspicious information on your credit report, contact both the credit bureau and the company that reported the information.It’s also important to change login credentials for any compromised accounts, and request replacement debit or credit cards if needed. If your account numbers were compromised, they should be changed as well. Following identity theft, you should also consider freezing your credit or placing a fraud alert on your credit report.
Identity theft should also be reported at IdentityTheft.gov. The Federal Trade Commission uses the information you provide to create a free, personalized recovery plan. Depending on the circumstances, it may also be helpful to file a police report.
Protecting Your Identity Starts with Small Steps
Identity theft can happen in many ways, from stolen passwords and phishing scams to data breaches and lost paperwork. While no one can eliminate the risk completely, taking a few simple precautions can make a big difference.Using strong passwords, enabling multifactor authentication, monitoring your accounts, reviewing your credit reports, and protecting sensitive information can help reduce your risk and make it easier to catch suspicious activity early.
The most important thing is to stay alert. The sooner you notice a problem, the sooner you can take action to protect your accounts, your finances, and your personal information.