Identity theft affects one in every 20 people in the U.S. each year and continues to escalate, according to experian.com. Fraud that occurred in 2019 led to $17 billion in losses, which can cause many people to feel vulnerable. Although identity theft is on the rise, there are still ways to protect yourself and make it harder for your information to reach the wrong person. It's important to be aware of a few common facts when you want to safeguard your personal information and reduce the risk of loss. By knowing more about how identity theft occurs, then you can protect yourself more efficiently. For those who can’t avoid identity theft entirely, it’s important to know how to recover from the situation.
How Are Identities Stolen?
Identities are often stolen in a variety of ways, which is why the problem continues to become more common. Public wi-fi networks are a common way that thieves steal information in settings that include libraries and coffee shops. Discarded or stolen documents are also a way that personal information is obtained because the paperwork often contains sensitive information.
Data breaches are also becoming more common and are a way for thieves to steal information from private individuals. Data breaches occur within health care companies, large organizations, merchants, and government agencies. Some people are also at a higher risk of identity theft if they lose their debit or credit cards or if the cards are stolen.
There are also a variety of social engineering scams that many people fall victim to, which can trick you into passing along your personal information. You may receive a phone call or email requesting that you submit your information from a company that you recognize.
Protective Measures
There are many protective measures you can take to reduce your risk of identity theft. Start by getting into the habit of monitoring your credit reports, which will allow you to determine if any new accounts have been opened in your name. You'll need to immediately report any unusual activity or balances that you don't recognize.
Avoid using public wi-fi in airports or restaurants to prevent anyone from having access to your information. You'll also need to remain mindful of online activity when you download an app on your phone or store your personal information on a specific website that you use to make purchases. Changing your passwords on a consistent basis can also increase your level of security. Opt for using complex passwords that include a lot of numbers and symbols.
You'll also want to shred any paperwork or documents that have your personal information to prevent your bank account info or social security number from getting into the wrong hands. Avoid throwing out any paperwork in the trash can, and make it a point to destroy the information.
How to Recover From Identity Theft
If you're the victim of identity theft, there are ways you can recover from it and restore your credit. Notify a credit bureau, credit card companies, and banks that have been affected. You'll need to request that the false information is removed from your credit report to prevent it from affecting your score. It's also important to file a police report to ensure an investigation can be performed. This is often a required step by collections agencies and credit card companies when an account has been opened in your name.
Freezing your credit will also prevent anyone from spending more money in your name. This will lock your credit information and will also prevent any credit reports from being released to new creditors. You'll need to create a pin to unlock the freeze in the future.
It's also crucial to change the password on any accounts that have been affected to prevent the criminals from having access to your information in the future or making any additional charges. In some cases, if identity theft continues to occur and your information is used each year, it may be time to change your social security number to prevent charges from being made.
Although identity theft is a common threat to every American, there are still steps you can take to protect your information and thwart any attempt to steal your social security number or bank account info. You can have peace of mind with the right protective measures in place and avoid significant loss that can occur over time.