Identity theft crimes have been increasing over the last decade. The Federal Trade Commission (FTC) hasn’t completed the tally for 2023 but in the first half of last year, it counted 560,000 complaints.
When someone steals your identity they can apply for loans and credit cards in your name and it is very difficult to convince creditors that you weren’t the only one doing it. So it makes sense that you should do everything possible to prevent becoming a victim.
There are several prudent steps to take to secure your identity but here are five that may be among the most important:
Freeze your credit
An identity thief does the most damage when they get access to your credit. If they have enough personally identifying information, they can rack up tens of thousands of dollars of debt in your name, often long before you find out about it.
But when you freeze your credit, a thief will be unable to take out a loan in your name because the lender can’t get access to your credit reports from Experian, Equifax and TransUnion. It’s not 100% foolproof but it’s close.
Freezing your credit is free and freezing and unfreezing is relatively Simple. Here are the links that you need to do it for all three credit reporting agencies:
Guard your Social Security Number
For identity thieves, your Social Security number is the most valuable piece of your personal data they can get their hands on. With it, they can cause plenty of misery.
Even if you have frozen your credit, a Social Security number could allow a thief to file a take tax return in your name, claiming a big refund. Just because someone you are dealing with asks for your Social Security number, it doesn’t mean you have to give it too them.
Don’t carry your Social Security card in your wallet. If your health plan – other than Medicare – or another card uses your Social Security number, ask the company for a different number.
Be careful about what you reveal on social media
Identity thieves spend a lot of time trolling social media sites because users tend to reveal way too much information. Let’s face it, Instagram is where you are trying to impress people, and the information you reveal about your children, grandchildren, pets, birthday, home and jobs can be used against you.
One problem is the social media platforms themselves, which want you to reveal as much data as possible. They encourage us to share photos and videos, "tagged" with the subjects' names, age, gender, other biographical information such as education, employment and hometown, contacts including how to reach them, status updates interests, likes and dislikes.
In a word - don’t.
Carefully scrutinize each statement
When you get a bank or credit card statement, it’s always wise to go over it carefully, making sure each transaction is yours. Most banks and credit card companies won’t hold you responsible for a fraudulent transaction if you report it promptly.
If you have online access to these accounts, so much the better. A weekly review not only keeps you abreast of your spending but can also help you quickly identify fraud.
Protect your passwords
When Identity thieves get one of your passwords it can open doors to your personal information. With all the data breaches over the last few years, rest assured that at least one of your passwords have been offered for sale on the dark web.
One defense is to regularly change your passwords for all accounts. If a thief buys your bank login, but it has been changed, they just wasted their money.
Consider using a password manager. That can get you out of the habit of using the same password for multiple accounts and allow you to use long and complicated passwords that no human is likely to remember.