How to Prevent Identity Theft

Introduction

Identity theft is a serious crime that occurs when someone uses your personal information, such as your name, Social Security number, or credit card or financial account information, without your permission. This can lead to significant financial harm, damage to your credit score, and even criminal charges. In this post, we will talk about what is identity theft, what steps you should take to prevent identity theft, and what you should do if you believe you are a victim of identity theft.

What is Identity Theft?

Identity theft is a type of fraud that occurs when someone uses your personal information to commit crimes or open accounts in your name. This can happen in a number of ways, such as through phishing scams, data breaches, stealing your mail or wallet, or other means that fraudsters use to capture your personal information.  Once a thief has your personal information, they can use it to open credit cards, take out loans and other financing, and even commit crimes in your name.

Identity thieves can use your personal information to:

1. Open new credit card accounts in your name.
2. Take out loans in your name.
3. Open new bank accounts in your name.
4. Make unauthorized purchases with your existing credit cards.
5. Use your medical insurance information to receive medical treatment.
6. File taxes in your name and claim your refund.
7. Commit other types of fraud using your personal information.

Steps to Prevent Identity Theft

1. Secure your Personal Information:  You should keep your personal information private and secure, and avoid sharing it unless absolutely necessary.  Always protect your Social Security number, birth date, and other sensitive information.  Also, be sure to use strong and unique passwords, and avoid writing them down or sharing them with others.

2. Protect your Computer and Mobile Devices: Use strong passwords and avoid using public Wi-Fi networks to access sensitive information.  If you need to login to your computer on a public Wi-Fi network, consider using a virtual private network (VPN).  Use two-factor authentication, which will require you to confirm your login through another device in order to access your account.

3. Monitor your Financial Accounts: Check your bank and credit card statements regularly to ensure that all transactions are legitimate. You should also set up transaction alerts or notifications to be alerted of any suspicious activity.

4. Use Security Tools: Use security tools such as credit freezes, fraud alerts, and transaction alerts to protect your accounts.  A credit freeze prevents anyone from accessing your credit without your permission.  Fraud alerts is a free service offered by the three major credit bureaus (Equifax, Experian and TransUnion) that notify you when someone attempts to open an account in your name. 

5. Avoid Sharing your Personal Information: Be cautious when giving out personal information, especially over the phone or online. Be skeptical of unsolicited phone calls, emails, or text messages that ask for personal information, and never provide personal information in response to an unsolicited request.

6. Watch for Phishing Scams:  Be wary of unsolicited phone calls, emails, or text messages that ask for personal information or that try to trick you into clicking on a link in a text or email.  Legitimate companies will never ask for personal information via a text, email, or unsolicited phone call.

7. Shred Sensitive Documents:  Shred sensitive documents before throwing them away, such as credit card statements or bills or anything containing your Social Security number or financial information. This will prevent identity thieves from sifting through your trash to gain  access to your personal information.

What to Do if You are a Victim of Identity Theft

If you suspect that you may have fallen victim to identity theft, it is important that you act quickly and take appropriate steps to minimize the damage.  Some steps you can take include:

1. Contact your Bank or Credit Card Company:  Inform your bank or credit card company immediately to report any unauthorized transactions. Close any accounts that have been compromised, including canceling credit cards and closing any compromised bank accounts.

2. Notify the Credit Bureaus: Contact the three major credit bureaus, Equifax, Experian, and TransUnion, to place a fraud alert on your credit report. A fraud alert warns creditors that you may have been a victim of identity theft and directs them to verify the identity of anyone attempting to open an account in your name.

3. File a report with the Federal Trade Commission (FTC): File an identity theft report with the Federal Trade Commission (FTC) online at IdentityTheft.gov or by phone at 1-877-438-4338. The FTC maintains a database of identity theft complaints and can provide you with a recovery plan and other resources to help you resolve the issue. 

4. Contact the Police: File a report with your local police department if you suspect criminal activity. Be sure to get a copy of the police report, as it will be needed to provide to the credit bureaus and file a claim with your insurance company.

5. Monitor your Credit Report: Review your credit reports regularly to check for any suspicious activity. You are entitled to one free credit report per year from each of the three major credit bureaus, Equifax, Experian and TransUnion.

Conclusion

Identity theft is a serious problem that can have severe consequences. Take steps to protect yourself before you’re a victim of identity theft, such as monitoring your credit reports, being wary of phishing scams, and keeping your personal information private. If you suspect that you may have fallen victim to identity theft, you need to act quickly to minimize the damage. Remember that it’s never too late to take preventive measures to protect yourself from identity theft.