How to Prevent Identity Theft and What to Do If Your Identity is Stolen How to Prevent Identity Theft and What to Do If Your Identity is Stolen

Identity theft is a tactic used by bad actors to impersonate someone else using their personal information and/or financial data -- typically their name, social security number, credit card number, bank account number, and/or birthdate -- in order to steal from them. 

With reports of identity theft on the rise (the Federal Trade Commission received more than one million reports of identity theft in 2023) we've compiled some tips on how you can remain vigilant against attempts to steal your identity as well as what to do in the event that your identity is stolen. 

Make Sure Your Social Security Number is Protected

This one can be filed under "common sense" but it stills bears repeating. Your social security number is a crucial piece of personal information that you should keep secure at all costs. Don't carry your social security card in your wallet or purse -- in the event your wallet or purse is lost or stolen you won't need to worry about your social security number being compromised. If you are ever asked to provide your social security number, be sure to ask why it is needed and how it will be protected. You can also ask if there is another piece of personal information you can provide instead of your social security number. If you are disposing of any paperwork that has your social security number on it, be sure to properly shred it before throwing it away. 

Initiate a Credit Freeze

By freezing your credit with the major credit bureaus, you'll restrict access to your personal credit information so new credit lines can't be opened in your name. This is one of the most effective ways to prevent an identity thief from using stolen personal data to open a new account or line of credit in your name. Freezing your credit is totally free, and you can unfreeze it whenever you want to open an account or apply for new credit. 

Be Aware of Phishing or Spoofing Scams

Two of the more common tactics used in identity theft scams are phishing and spoofing. Phishing involves a scammer contacting you pretending to be someone from a reliable source like a bank, government agency, or business asking you to update or verify personal information by replying to an email or clicking a link to visit a website. Phishing scams are intended to get you to divulge sensitive personal data that can be used for malicious purposes like identity theft. 

Spoofing involves the use of fake email addresses, phone numbers, or web addresses to trick people into believing they are dealing with a reputable and trusted source. By gaining your trust, a scammer will attempt to get you to send them money under false pretenses, disclose personal information, or even download malicious software to your computer. 

The bottom line is that if a communication seems suspicious to you, trust your instinct. Never give out personal information like your social security number or bank account information by phone or email. Even if it is requested from someone purporting to work for a trusted organization, get in the habit of calling that organization back directly to verify the authenticity of the request you received. Most financial institutions or businesses will never ask you to divulge personal or account information over the phone or by email. Also, always be wary of email attachments and links from sources you are unfamiliar with or suspicious of -- clicking a link or opening an attachment can make you vulnerable to malware attacks. 

Use Strong Passwords and Password Best Practices

One of the first steps you should take in protecting your identity is to ensure all of your passwords follow some very straightforward best practices. First of all, avoid reusing passwords between different accounts and services. It goes without saying that using the same password across multiple accounts will create bigger problems for you if one account is compromised. You should create and store complex, unique passwords for each of your accounts. Try to make each password at least eight characters long with a mix of letters, numbers, and symbols. Don't rely on your street name, mother's maiden name, or pet's name for your passwords -- these are all easier to find online than you'd think. You can also use tools like a password manager to keep track of all your passwords securely. If you do write your passwords down on a piece of paper, be sure it is stored securely and out of sight.

When possible, activate multifactor authentication as part of the login process for your accounts as well to add another layer of protection. 

Protect Your Identity by Shredding...Everything

Get into the habit of shredding any paperwork with personally identifiable information on it. When you receive a credit card statement, bank statement, insurance statement, credit offers, or any other paperwork bearing your name, birthday, account numbers, SSN, or other personal data, set it aside to be shredded. There are plenty of services out there who can periodically come to your home or place of business and shred paperwork for you. You can also purchase relatively inexpensive shredders for your home or business so you can have one on hand to dispose of paperwork as needed.

Regularly Check Your Credit Reports

One of the easiest and cheapest forms of identity theft protection is to regularly monitor your credit report. Be sure to keep an eye out for signs of fraud like accounts or lines of credit that you don't recognize. The three major credit bureaus give consumers free access to credit reports at AnnualCreditReport.com so be sure to get in the habit of checking your credit score as another way to protect yourself from identity theft. 

Protect Yourself from Identity Theft Online

With shopping online becoming more prevalent, it's important to introduce some identity theft protection best practices into your digital retail therapy habits. Always be sure to read a business's privacy policy before entering any personal information like your name, contact information, or credit card number, into their website. If you are considering shopping at a business that does not make their privacy policy readily available on their website, consider shopping elsewhere if you're able to. Another easy way to determine the legitimacy of an online retailer and protect your personal information is to make sure you're only making purchases from websites with "https" and a padlock symbol in the address bar. These both indicate that the page you are on is secure, and that your information will be encrypted to help protect your identity online. 

Stop Pre-Approved Credit Offers

Pre-approved credit offers that you receive by mail are an incredibly lucrative target for identity thieves. By simply stealing mail like pre-approved credit offers, bad actors gain access to your personal data that can be used to steal your identity. You can help prevent identity theft by having your name removed from credit bureau marketing lists at http://www.optoutprescreen.com/ or by calling 1-888-5OPTOUT (888-567-8688). Another great way to protect your identity is to sign up for USPS Informed Delivery, which gives you a digital preview of what you can expect to receive in the mail every day so you know if anything is missing. 

ID Theft Happens. What to Do If You're Identity is Stolen. 

While you should try to incorporate some or all of the best practices we've outline above to protect your identity, it's equally important to know what to do in the event that your identity is stolen. There are several steps you can take to contain the damage if you believe your personal data has been compromised. 

First, you can place a fraud alert to warn creditors to be wary of any attempts to open new accounts or lines of credit in your name. While it doesn't totally prevent new accounts from being opened in your name (which is why freezing your credit is so important), a fraud alert will last up to a year and offers some added protection against lines of credit being extended in your name. You'll also want to report identity theft to any financial institutions you do business with as soon as possible. This includes your bank, credit card companies, and insurance companies. This will allow them to monitor your accounts for any unauthorized activity. And if you haven't done so already, be sure to freeze your credit. As we outlined above, this will greatly restrict the ability of identity thieves to open new accounts or lines of credit in your name. 

It goes without saying, but if you believe your identity has been stolen you should report the crime to the proper federal and local authorities. Filing a police report with your local department can help extend the fraud alert you filed with credit bureaus and will be critical in disputing any fraudulent charges with your creditors. You should also file a report with the Federal Trade Commission (FTC), the federal agency responsible for dealing with identity theft. File a report with the FTC online or by calling 1-877-438-4338.

Want to know what steps Leader Bank takes to protect the personal data of our clients? Visit our website for more information on how we handle client data as well as for some helpful tips about how to protect your information online.