How to Protect Yourself From Identity Theft

​Identity theft is the crime of using someone else's identity for personal gain. However, over the past few decades, it has become a more common problem. The rise of the internet and social media have caused a revolution in society. However, they have also made information more accessible for would-be thieves.

Because of this, it's important to understand what identity theft is and how you can protect yourself.

Types of Identity Theft

When the term "identity theft" comes to mind, images of your bank and credit accounts may enter your head. You might picture a shadowy man in a hoodie sitting in a darkened room, lit by the glow of his monitor.

In reality, it is a broadly-defined crime. Identity thieves come in several different types, and they all have a goal. Some thieves are simply looking to steal money. Some are looking for a tax refund or benefits that aren't theirs. Some go as far as to impersonate others in real life.

Here are some of the types of identity theft¹:

• Identity Cloning/Concealment – Impersonating someone else in real life.
• Criminal Identity Theft – Identifying oneself as another person to police while being arrested.
• Synthetic Identity Theft – Creating a fake identity with someone else's Social Security number.
• Medical Identity Theft – Using someone else's identity to get medical treatment or benefits.
• Child Identity Theft – Using a child's identity for personal gain.
• Financial Identity Theft – The most common type. These thieves are looking for financial gain. They may use the stolen identity to get credit and loans or to buy things. They may even open new accounts in your name, making it harder for you to catch them.
  

How It Happens

Identity theft often happens online. However, thieves can get varied and creative in their methods. Some of these methods involve computers, while others are completely "offline."

For example, "dumpster diving" thieves are surprisingly common. People will go through trash, looking for any sensitive documents others have thrown away. They may also do the same with mail. Some thieves go as far as tracking down the victim's workplace and stealing information from it.

Thieves may also get their information via scams. These can happen both on and offline. A common form of online scamming is called "phishing," in which the scammer tricks you into giving them your personal info. You can read more phishing and other scams here.

Thieves may even commit their crimes by guessing personal information. In this case, they will try to gather info about a person through public sources. This can include using what you post on social media, like your Facebook profile. Once they have this information, they will use it to guess bits of data like passwords, security questions, and Social Security numbers.

Finally, thieves may get info via cracking accounts or even websites. This can be as simple as a "brute-force attack." Attackers can do this by writing a program that guesses thousands of passwords to crack your account. On the other hand, cyberattacks against major sites do happen. If a group of thieves manages to do this, it leaves thousands of users' info exposed.

Warning Signs

To be able to defend yourself against identity theft, it's important to know how to spot it. Here are a few common warning signs²:

• You see activity on your bank account and credit statements you can't explain.
• You are billed for things you didn't buy.
• You are not getting bills and other mail. Thieves may steal or redirect your mail.
• Your credit score drops suddenly.
• You see accounts you never opened on your credit report.
• You are rejected from loans even though your credit was always good.
• Your checks are rejected without a clear reason.

Avoiding Identity Theft

Dealing with identity theft can be stressful and scary. So, it's important to take steps to defend yourself and lower your risk. Here are a few tips:

• Watch your accounts. This is probably the simplest course of action, but it can go a long way. If you keep an eye on your accounts, it's easy to spot suspicious activity.
• Don't overshare. As mentioned earlier, thieves can and will use the information on your social media accounts against you. Be careful and use good judgment when deciding what to share on your profile.
• Watch out for phishing and scams. Be wary of emails, websites, and offers that seem suspicious or "too good to be true."
• Store your information securely. Keep a secure file at home where you store sensitive documents. Never store this info on your computer.
• Dispose of your information safely. If you have to throw away a sensitive piece of information, run it through a shredder or cut it up first. This stops "dumpster diving" thieves from being able to read it. For example, do this to any mail that has your personal information, even junk mail.
• Learn about secure networks and connections. Public Wi-Fi networks are not secured. It's possible for another person to see information sent over them. Make sure you use a secure network for things like online banking and bill pay. Also, make sure the site uses HTTPS. This means your information is scrambled while being sent so that eavesdroppers can't see it. To check, look for "https://" before a site's web address.
• Install anti-malware and antivirus software. Malware and viruses can be used for identity theft. Protecting yourself against them is a good course of action.

Recovering From Identity Theft

You can reduce your risk of identity theft using the tips above. However, it isn't a guarantee. Some people become victims of identity theft even when taking all the steps to try and keep their information safe. For example, over the past few years, several huge data breaches have happened. These include the 2013 Target breach and the 2017 Equifax breach, to name a few. Data breaches expose thousands of people's personal information to thieves and can put you at risk.

If you believe you're a victim, act fast. A thief can do a lot of damage the longer you wait. Here are a few things you can do if you think someone has stolen your identity.³

• Call the companies where the fraud happened. This should be your first order of business. Let your bank, creditors, etc. know that someone has stolen your identity. This is a starting point for taking the steps you need to recover.

• Freeze your credit. This means that no one can open new accounts or take out new loans in your name. If you do this, thieves will have a harder time going unnoticed. However, a credit freeze also stops you from being able to do the same. If you're looking for things like a house, apartment, or car, freezing your credit isn't the best idea.
• Place a fraud alert on your accounts. This warns creditors that someone has stolen your identity. It lets them know they need to keep a close eye on your accounts and verify if someone using your information is really you.
• Check your credit reports. You can easily spot phony activity on your credit report. That's because your report shows you all accounts under your name. So, if a thief opens a new account or card in your name, it will show up on the report. If you're not sure how to check your report or it sounds hard, don't worry! You actually have the right to a free credit report from each of the three major reporting agencies every year. Get these reports at https://www.annualcreditreport.com/index.action. Also, note that you should only get credit reports from this site. Don't trust any other site claiming to offer reports for free.

These tips are just a starting point. Recovering from identity theft can be a long, multi-step process, depending on what exactly happened to you. Be sure to look at security.org's guide Securing Confidential Personal Data Both Online and Offline.

You should definitely check out IdentityTheft.gov's recovery steps as well as this handout created for National Cybersecurity Awareness Month.

Sources

¹https://en.wikipedia.org/wiki/Identity_theft

2https://consumer.ftc.gov/articles/what-know-about-identity-theft

³https://www.bankrate.com/finance/credit/steps-for-victims-of-identity-fraud/

Infographic Source

https://www.gobankingrates.com/category/credit/credit-monitoring/