Protecting Yourself From Identity Theft

Identity theft is a broad term that refers to the use of someone’s personal information, without permission, to commit fraud or a crime. That fraud often involves impersonating you to open accounts in your name, take control of your financial accounts, or access other information that should only be available to you. The consequences for you can range from fraudulent credit card charges to stolen tax returns to loans taken out in your name. It’s become a fact of life for pretty much everyone; no one is immune. So what can you do about it? We recommend a dual approach.

1) Protect your personal information to make identity theft more difficult. In most cases you aren’t being targeted specifically. The harder you can make it to steal your identity, the more likely you are to be passed over for an easy target. We’ve already covered protecting yourself with strong, unique passwords and defending against phishing attempts. You should also stay aware of, and try to limit, the distribution of your personal information. Don’t give out your social security number unless you have to, shred your old financial statements, medical bills, etc., and be wary of putting personal information on social media. The same details those Facebook quizzes ask for (old addresses, birthdate, pets’ names, mother’s maiden name, etc.) are often confirmation details to verify your identity when you apply for credit or open a new account.

2) Monitor your information to identify suspicious activity quickly and report it. You should check your credit report several times a year to make sure everything is accurate. Fraudulent credit accounts opened in your name will show up here – report anything you see that you don’t recognize. Keep an eye on your credit card and bank statements for charges you don’t recognize. Don’t skip the small ones. Identity thieves will often try a small “test” charge of $5 or less to see if they can get away with it before really piling up the purchases. Review monthly to make sure everything is as it should be. Finally consider freezing, locking, or placing a fraud alert on your credit.

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