To an identity thief, your Social Security number, bank account details and good credit history are valuable assets worth stealing. They’ll use these pieces of sensitive information for identity theft purposes, which is when someone uses these details to impersonate you. The financial consequences can be severe, including fraudulent loans taken out in your name, fake file tax returns to steal your refund, and even withdrawals from your bank account without your knowledge.
Even if you’re savvy, thieves are coming up with more sophisticated ways to try to steal your information. Some may use tactics where it’ll convince you that they’re from your bank or a government agency to get you to hand over information. Or, some will dig through the trash to find old financial records to try to hack into online accounts.
The good news is that you can be prepared for these threats. There are some simple and practical steps you can take to protect yourself. If you do face a worst-case scenario, you can utilize professional identity theft services to help you recover faster.
Identity theft is a crime in which a thief uses your personal information to impersonate you without your consent or knowledge. There’s a wide range of scenarios in which this type of crime can happen. It can be as simple as a forged signature on a check, or a stolen credit card number used to make a purchase. In some cases, it can involve large-scale data breaches what can compromise thousands of accounts all at once.
The most valuable types of information thieves are after include:
One of the most frustrating aspects of identity theft is how difficult it can be now to prevent, detect and prosecute thieves. It has cost consumers and businesses billions of dollars in the U.S. over the years. This amount will probably continue to rise as more of our personal and financial lives are online .
Although thieves are getting more sophisticated in their tactics by the day, there are some simple and no-cost strategies that you can take today that can help you reduce your risk of identity theft.
Banks and other financial institutions have security features, but not all are created equal. Look for financial institutions that offer real-time alerts for any unusual activity on your accounts, free transaction monitoring and other types of fraud protection. For example, most credit cards allow you to report fraudulent transactions so you’re not on the hook for them.
It’s fine to throw away documents you don’t need. You may be surprised that thieves look for physical documents like unsolicited credit card offers, old bank statements, paycheck stubs, even utility bills. These details can help them get started in their identity theft attempts.
To make it less easy to access them, shred these documents before throwing them away. Consider blacking out any account numbers, your name and address to add another layer of protection.
Reusing the same password across all or many of your accounts is one of the most common mistakes you can make to compromise your security. If thieves get into one of your accounts, they can access the others that share the same password.
Consider using a different password for each account and make them complex with a combination of numbers and letters. If it’s too much to handle, there are reputable password managers you can use to keep track.
Don’t forget to update your passwords periodically and change the answers to your security questions if possible.
Looking at your bank and credit card statements will help you spot any small or seemingly minor charges that seem off. That’s because thieves will try to make these small charges to see if you notice. And if you don’t, they will attempt larger purchases or transfers.
If you do spot anything that’s familiar, contact your financial institution immediately, even if it’s a small amount.
Yes, you can handle much of the work on your own when it comes to protecting yourself from identity theft. However, professional services usually have access to public and private databases that you may not have access to. Some features you may also be able to access through these services include dark web monitoring, financial data aggregators and alerts from credit bureaus.
It may also be worth the effort to enlist the expertise of professionals so you have the convenience of someone else helping to track your accounts.
Before signing up for any services, it’s important to consider which type of service you want.
A monitoring service helps keep a close eye on your personal accounts and flags any suspicious activity. Examples include a new account opened in your name, an unusually large purchase or a credit inquiry you didn’t authorize. You’ll receive an alert so you can look into it further.
With this type of service, you’ll be responsible for looking further into the suspicious activity, While you’ll be notified of potential fraud, the service ends there. These tend to be more affordable than other types.
Recovery services take a step further than simply monitoring your accounts. If it detects suspicious activity, the company can take action on your behalf, such as contact financial institutions, dispute charges, and even initiate a more formal investigation.
Some recovery service providers may reimburse you for financial losses caused by identity theft and provide credit repair assistance at no additional charge. You will probably pay more for these types of services, but you do get more protection.
Choosing the right identity theft services comes down to understanding what features truly matter to you. Here are some features to consider.
Look at what services you’ll get beyond credit report monitoring. Some services track a wide range of potential threats, like usage of your Social Security number, changes to your bank account, dark web activity and new account openings. Also, consider if it’ll monitor your children’s accounts or the ability to add additional family members. The more it monitors, the more comprehensive the service.
Most, if not all services will offer immediate alerts when there may be a sign of fraud. See how it’ll alert you, whether it’s an app notification, text or email.
Many reputable services include identity theft insurance, which usually covers up to $1 million in losses and expenses related to identify theft recovery. Think expenses like legal fees, lost wages and other costs associated with restoring your credit. Aside from the coverage limit, check what else is included in the policy.
Look for a dedicated recovery specialist or case manager who will help guide you if identity theft does occur, or even help with the process of disputing charges and notifying creditors. See if the service merely helps you or does some of these tasks on your behalf.
You don’t want to sign up for a service that has a vague pricing structure or forces you to lock into a contract for an extended period. You should be able to clearly see what is included in a certain tier, what your monthly or yearly cost will be, and how to cancel an account.
