Identity theft is a growing problem. Over the past decade, total fraud and identity theft cases have nearly tripled.
As technology advances, cyberthieves use ever-more sophisticated methods for attempting to steal people’s hard-earned money and identities.
We all need to be hypervigilant about protecting our names and addresses, credit card and Social Security numbers, bank account numbers and medical insurance account numbers.
In 2023, the Federal Trade Commission (FTC) received 5.7 million total fraud and identity theft reports. Of those, 1.4 million were identity theft cases, with the most common type being fraud (395,948 cases reported).
Almost one-third of Americans have been a victim of identity theft, and each year, there are more than 50,000 individual personal data breaches in the United States. Identity theft victims in this country are most commonly between 30 and 39 years old.
Six ways to protect yourself from identity theft
You can reduce your chances of experiencing identity theft by following some simple steps. Three of the most obvious ways to protect yourself are by changing your password often, creating strong passwords and using mutifactor authentication. Here are six additional ways to protect yourself and your loved ones from falling prey to this growing crime.
1. Avoid opening emails and attachments from unknown sources
One of the most common, and dangerous, ways cybercriminals steal other people’s identities is through phishing — sending fraudulent texts or emails that look like they’re from legitimate and reputable sources. Their goal is to access your login details, steal money and/or install malware on your devices.
To reduce this risk, avoid opening emails or texts, or clicking on links, from sources you don’t recognize. If you do open any communications from unknown senders and see instructions to open an attachment, don’t open it!
2. Be careful when using public Wi-Fi
When you use free public Wi-Fi, cybercriminals might be able to see what you are doing and access your login information and account details. For this reason, it’s not advisable to use public Wi-Fi for online shopping or banking. If you choose to do so, use a VPN (virtual private network) service to create a secure connection.
If you access sensitive information using public Wi-Fi often, consider buying a privacy screen for your laptop. It will make it more difficult for people around you to see information on your screen. When possible, use secured Wi-Fi networks, as opposed to those that are unsecured. Make sure your firewall is enabled to help protect your device from malware threats, and turn off file-sharing options.
3. Freeze your credit
One of the best ways to protect yourself from identity theft is too freeze your credit with all three major credit bureaus. When you freeze your credit, no one can open new accounts in your name. If you want to apply for credit while your accounts are frozen, you’ll need to contact the credit bureaus to unfreeze your credit. This is a free service.
A credit freeze provides the best protection against an identity thief who tries to use your data to open a new account. Freezing your credit with all three major credit bureaus — Equifax, Experian and TransUnion — restricts access to your records so new credit files cannot be opened.
4. Use a password manager
With a username and password required to access all kinds of accounts, it can become overwhelming. To make logging in to many websites easier, it can be tempting to use the same password for many different sites. However, that approach increases your risk of cyberthieves accessing more than one of your accounts. A password manager can help you create strong passwords and encrypt the information to keep it safer.
When you use a password manager, you have to remember only one master password. Your other logins will automatically populate when you visit each app or website. An added benefit is that some of these services use end-to-end encryption. This means no one can see your passwords — not even the password-manager company.
Some password manager services offer free trials, but most require a nominal fee for a one-year subscription. If this resource protects you from cybertheft, it’s well worth the $10 to $60 per year you’ll spend for it!
5. Use a digital wallet
One method of identity protection that’s gaining in popularity is the use of digital wallets. These are apps that contain secure digital versions of credit and debit cards on your smartphone. You can use them to shop online or at in-store checkout terminals that accept this form of payment. When you use a digital wallet, you don’t have to carry cash, debit cards or credit cards with you.
What makes these payments safer is that the transactions you make with them are tokenized and encrypted, which makes it more difficult for someone to access your payment information. Depending on which digital wallet you use, these apps also can store gift cards, membership cards, event tickets, plane tickets, cryptocurrency and even your car keys!
6. Keep an eye on your snail mail
Although much identity theft occurs online, it also happens through the U.S. mail. Intercepted mail is one of the easiest paths to stolen money and stolen identity. Have the U.S. Postal Service hold your mail if you’re going out of town, or have someone collect your mail for you.
Also consider signing up for the free USPS service called Informed Delivery. Each morning, you will receive an email that shows you an image of all mail you will be receiving that day. Then, if you do not receive a piece of mail you were expecting, you can contact the sender and take any action needed to protect yourself.
7. Close accounts when a loved one dies
Some cybercriminals attempt to steal the identities of people who have died. It’s important to notify the appropriate companies and agencies after the death of a loved one.
The first call to make is to the Social Security Administration (SSA) immediately. The regular toll-free number is 800-772-1213, and for the hearing-impaired, the number is 800-325-0778. The funeral home will file a statement of death with the SSA, but it’s also a good idea to call the SSA yourself to give them immediate notice and to answer any questions they may have.
You will need at least 10 copies of the death certificate to send to the three credit reporting agencies and any financial institutions where your loved one had accounts. You will also need copies to give or send to the appropriate companies handling your loved one’s banking, credit card accounts, mortgage, investments, loans, life insurance, pension accounts, real estate, vehicles and veterans’ benefits.
When you contact these companies, instruct them to close all individual accounts and to remove the deceased’s name from any joint accounts. It’s best to do this in writing. As soon as you receive certified copies of the death certificate, send a copy, along with a letter, to each of the financial institutions where the deceased had an account. Doing so serves three purposes. It informs them of your loved one’s death, begins the process of resolving all outstanding debts, and requests to close or change ownership of accounts. To make these requests, you will need to show that you are the spouse of the deceased or the executor of the estate.
Also send a copy of the death certificate to all three credit reporting agencies. Include a letter requesting a credit report on your loved one, and request that a “deceased alert” be placed in the person’s file.
Five steps to take if someone steals your identity
Here are five steps to take immediately if you have been a victim of identity theft:
- Contact the Federal Trade Commission (FTC) online at IdentityTheft.gov, or call 1-877-438-4338.
- Contact the three major credit reporting agencies, and ask them to place fraud alerts and a credit freeze on your accounts.
- Contact the fraud department at your credit card companies, banks and other companies where you have accounts.
- Use IdentityTheft.gov’s list of steps to help you minimize the impact and losses associated with any breach.
- If you believe you have experienced tax-related identity theft but have not received a notification from the IRS about it, file an Identity Theft Affidavit with the IRS, which is Form 14039. When you complete this form, it will invalidate any fraudulent returns that someone has filed using your information.
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Identity theft is likely to continue, so the best way to avoid this threat is to be hypervigilant about protecting all your personal information. Always handle your sensitive information as if someone is lurking around, trying to access it — because someone could be. It’s an unpleasant reality, but you are the first and best line of defense against this costly and frustrating crime.
