Identity theft is no small thing. You could be dealing with tons of debt and paperwork if someone steals your identity for months afterwards, especially if you need to fix credit report inaccuracies later.
The way you approach data and credit safety can make a huge difference to your chances of becoming an identity theft victim. Here are some essential recommendations to help you secure yourself.
How Identity Theft Happens
Identity theft occurs when someone steals your personal information – like your name, address, Social Security number, or credit card details – and uses it for fraudulent purposes. Here's a breakdown of the most common tactics thieves use, along with ways to safeguard yourself:
- Data Breaches: Unfortunately, even major companies can suffer cybersecurity attacks. When this happens, your data stored with them becomes vulnerable.
- Protect Yourself: Change your passwords regularly, especially for accounts linked to breached services. Monitor your bank and credit card statements closely for suspicious activity.
- Phishing Scams: These scams become increasingly sophisticated! They often mimic emails or texts from banks, retailers, or government agencies, trying to trick you into clicking dangerous links or divulging personal details.
- Protect Yourself: Never click on links in unsolicited messages. Verify the sender's address carefully. When in doubt, contact the institution directly through their official website or phone number.
- Skimming: These devices are sometimes illegally attached to ATMs, gas pumps, or other card readers. They capture your card data when you swipe.
- Protect Yourself: Be alert when using card readers. Look for signs of tampering (loose parts, unusual overlays). If possible, pay inside or use contactless payment methods.
- Mail Theft: Old-fashioned, but sadly effective. Thieves may target mailboxes to find bills, bank statements, or pre-approved credit card offers containing your personal information.
- Protect Yourself: If possible, use a locking mailbox. Collect your mail promptly. If you're expecting sensitive mail that doesn't arrive, contact the sender.
It's Not Foolproof! Even with the best precautions, identity theft can happen. Stay vigilant by regularly checking your credit reports and financial accounts.
What Identity Theft Can Do
Once a thief has your information, the potential damage they can inflict is far-reaching and unsettling. Here's a look at common scenarios and their effects:
- New Credit Fraud: They can use your details to open credit cards, loans, or even utility accounts in your name. This can destroy your credit score, lead to mountains of debt, and make it difficult to obtain legitimate credit in the future.
- Account Takeovers: Thieves might access your existing bank accounts, racking up charges, draining your savings, or even changing your login credentials to lock you out.
- Medical Identity Theft: They can use your health insurance to receive treatment, get prescriptions, or submit false claims. This leaves you with unexpected bills, compromises your medical records, and potentially limits your future access to healthcare.
- Criminal Impersonation: In serious cases, thieves can exploit your name and information to commit crimes. This could result in arrest warrants, a tarnished reputation, and even legal battles to clear your name.
The sooner you detect identity theft, the better.
Protecting Your Personal Information: Best Practices for Keeping Your Data Safe
Your personal information is valuable to cybercriminals and identity thieves. It is essential to take precautions to protect it. Here are some best practices for keeping your data safe:
- Use Strong Passwords: There are many different ways to have a strong password that deters cyber-attacks. You should make sure it is complex, long and uses a combination of letters, numbers, and symbols. If you don't feel confident in your password crafting capabilities, you can always use a password manager to create and keep your passwords for you.
- Enable Two-Factor Authentication: Enable two-factor authentication for all your accounts. This adds an extra layer of security to your accounts.
- Beware of Phishing Scams: Be cautious of emails or text messages from unknown sources. Do not click on any links or provide personal information unless you are certain of the sender’s identity.
- Monitor Your Accounts: Regularly monitor your bank accounts and credit reports for any suspicious activity. Set up alerts for any new accounts or changes to your accounts.
- Use a Password Manager: Consider using a password manager to generate and store complex passwords securely.
- Keep Your Devices Updated: Keep your devices and operating systems up to date with the latest security updates.
- Secure Sensitive Documents: Store sensitive documents, such as your social security card or birth certificate, in a safe or locked cabinet.
By understanding how identity theft happens and what it can do, you can take steps to protect yourself and your information from being stolen. Stay vigilant and be cautious with your personal information to avoid becoming a victim of this crime.
Monitoring Your Credit: Why It Matters and How to Do It Effectively
To monitor your credit effectively, start by obtaining your free credit report from the three major credit bureaus annually. Review your reports for inaccuracies, such as unauthorized accounts or inquiries. You can also sign up for credit monitoring services, which will alert you of any changes or suspicious activity on your credit reports.
Another way to monitor your credit is to keep an eye on your credit score. Your credit score is a numerical representation of your creditworthiness and is used by lenders to determine your eligibility for loans and credit. You can monitor your credit score through credit monitoring services or by using free credit score websites.
Check Your Credit Reports Yearly
You're entitled to a free credit report from each of the three major credit bureaus (Experian, TransUnion, and Equifax) every 12 months. Here's how to turn this into a powerful identity theft monitoring tool:
- Stagger Your Requests: Request one free report every four months. This allows you to maintain consistent surveillance of your credit activity throughout the year.
- Where to Get Your Reports: Visit www.annualcreditreport.com – the official website mandated by federal law – to access your free reports.
- What to Look For: Scrutinize your reports for:
- Unfamiliar Accounts: Credit cards, loans, or other lines of credit that you didn't open.
- Inaccurate Information: Incorrect addresses, misreported balances, or errors about payment history.
- Suspicious Inquiries: Hard inquiries from lenders you don't recognize may indicate attempted identity theft.
Even minor discrepancies can be the first signs of identity theft. While some errors might be true mix-ups, it's crucial to investigate them.
Add Fraud Alerts to Your Credit
A fraud alert is a good way to ensure that your credit stays protected. You can contact your CRA of choice to place a fraud alert on your report. This means that someone who may be trying to pass themselves off as you trying to take out a lease or loan in your name won’t be able to, since the lender in question will see the fraud alert and take steps to identify you.
Fraud alerts stay active for a year, but if you’ve filed a report as a victim of identity fraud you can get a fraud alert applied for seven years for a price. The CRA you contacted will also notify the two other agencies, so you don’t have to.
SSN Safety is Key
Your Social Security Number (SSN) is more than just a set of numbers. It's a digital key that unlocks your entire personal and financial history. From the moment it's issued, your SSN becomes intrinsically linked to your credit reports, employment records, healthcare, and more. This makes it a highly sought-after target for identity thieves.
While guarding your SSN can feel daunting, there are crucial actions you can take:
- Limit Sharing: Only provide your SSN when absolutely necessary, such as for tax filings, official background checks, or legitimate credit applications.
- Secure Storage: Keep your Social Security card in a safe place at home. Avoid carrying it in your wallet.
- Shred Sensitieve Documents: Shred any documents that contain your SSN and other personal information before disposing of them.
- Monitor Your Credit Reports: Regularly check your credit reports (you're entitled to free ones) for suspicious activity – new accounts you didn't open or inquiries you don't recognize.
Important Note: Even with vigilance, identity theft can happen. If you suspect your SSN has been compromised, contact the Federal Trade Commission (https://identitytheft.gov) to report the crime and get guidance on remediation.
Online Banking Tracking
You should also set up online banking with text alerts for each of your accounts and cards. This would allow you to stay on top of all your transactions and balance your bank statement every month. The text alerts will keep you notified in the case of any new payments, withdrawals or transactions, which will make identifying theft much easier.
However, even after all these precautions, you may find yourself dealing with the damage resulting from a vicious instance of identity theft. In the aftermath, I can offer my services as a credit lawyer in St. Louis and Chicago to help you rebuild your credit and remove debt that was added by the thief.
You can also rely on me to address inaccurate background checks, mixed credit reports, bankruptcy credit errors and debt harassment in St. Louis and Chicago. Contact my office at Cook Law, LLC to get started.
