Identity theft is a growing concern, and Data Privacy Week serves as an important reminder to safeguard your personal information. In today’s digital age, scammers have more tools than ever to steal your identity, often with just a few key details—like your Social Security number, bank account information, or home address.
Unfortunately, identity theft claims have surged in recent years, jumping from approximately 650,000 in 2019 to over a million in 2023, according to the Federal Trade Commission (FTC). This trend underscores the urgent need for stronger personal data protection habits.
So, how do scammers pull it off, and how can you protect yourself from becoming a victim?
How Do Scammers Steal Your Identity?
Scammers are resourceful, and there are multiple ways they can access your personal information. The theft can happen both in the physical and digital realms.
- Identity Theft in the Physical World:
- If you lose your wallet or debit card, that’s an immediate risk. But thieves also use other methods like rummaging through your trash or mail to access sensitive information. In rare cases, they may even file a change-of-address form in your name, redirecting your mail to a different address.
- Identity Theft in the Digital World:
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- Data breaches: Hackers infiltrate businesses or government systems, stealing massive amounts of customer data.
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- Phishing attacks: Fraudsters use deceptive emails, texts, or websites to trick you into entering sensitive information like passwords or credit card details.
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- Malware: Scammers can infect your devices with malware that secretly harvests your data.
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- Public Wi-Fi risks: Using unsecured Wi-Fi networks without a Virtual Private Network (VPN) makes it easier for hackers to intercept your online transactions.
Signs Your Identity May Have Been Stolen
When scammers steal your identity, they often leave behind a trail of unusual activity that you can detect. Here are some common signs that could indicate identity theft:
- Unexpected bills or new accounts: If you start receiving bills for accounts you didn’t open, or if you see unfamiliar charges on your bank statements, it’s time to investigate.
- Missing bills or statements: If your regular bills or account statements stop showing up, it could mean your address has been changed without your knowledge.
- Fraudulent accounts or transactions: Getting debt collection calls for accounts you never opened, or spotting unauthorized charges on your credit or bank statements, is a major red flag.
- Denial of credit: If you apply for a loan or a credit card and get denied for reasons you don’t understand, it could be due to fraudulent activity under your name.
- IRS notifications: If the IRS contacts you about tax returns filed in your name, it’s possible someone has stolen your Social Security number to claim your refund.
Steps to Take If You Suspect Identity Theft
If you suspect that your identity has been stolen, time is of the essence. Here’s what you need to do:
- Contact the companies involved: Immediately report any suspicious transactions to your bank, credit card company, or any business where fraud has occurred. They can help you initiate an investigation.
- File a police report: Identity theft is a crime, and it’s essential to report it to the authorities. Filing a police report can create an official record of the theft and help protect you if the thief commits other crimes under your name.
- Place a fraud alert or credit freeze: Contact one of the major credit bureaus (Experian, TransUnion, or Equifax) to place a fraud alert on your credit file. This makes it harder for thieves to open accounts in your name. You can also opt for a credit freeze, which prevents creditors from accessing your credit report altogether.
- Dispute any inaccuracies: Check your credit reports for any unfamiliar activity. Dispute any fraudulent accounts or charges with the relevant credit bureaus and businesses involved.
- Monitor your credit and accounts: Even after taking the above steps, it’s crucial to keep an eye on your credit report and bank statements. The longer you monitor, the sooner you’ll spot any other fraudulent activity.
How to Prevent Identity Theft
While you can’t completely eliminate the risk of identity theft, there are several steps you can take to protect yourself:
- Use strong passwords: Create unique passwords for each of your online accounts and enable two-factor authentication wherever possible.
- Install security software: Use comprehensive security software to protect your devices from malware and hackers. McAfee+ offers enhanced protection against identity theft and provides real-time monitoring for any suspicious activity. McAfee+ Advanced and Ultimate plans also come with full-service Personal Data Cleanup, which sends requests to remove your data automatically.
- Shred personal documents: Shred bills, tax documents, and any sensitive paperwork before disposing of them. Scammers still use physical methods like “dumpster diving” to gather personal information.
- Be cautious online: Be mindful of the information you share on social media. Avoid posting sensitive details like your birth date or mother’s maiden name, which could be used to guess your security questions.
- Regularly monitor your bank accounts: Regularly check your bank activity and credit report to ensure that no unauthorized activity has taken place. You’re entitled to a free credit report annually from the three major credit bureaus.
Identity theft can be a stressful and overwhelming experience, but by acting quickly and taking proactive steps to protect your personal information, you can minimize the damage and reclaim your identity.
