Identity Theft

What is Identity Theft and Why Should You Be Concerned?

Using someone else’s name, credit card number, bank account information, or Social Security number, without that person’s consent, is known as identity theft. The purpose of the theft is usually to commit fraud or theft in someone else’s name. The end goal could be stealing money, opening accounts in someone else’s name, or filing a tax return with the IRS under a name that is eligible for a refund. The consequences to the victim can be both financial and emotional.

Identity theft is a more general occurrence because there are so many transactions conducted online and data that is not secure, along with our poor habits of securing our data, along an increase in online transactional fraud over the years. Understanding the crime of identity theft and putting real identity theft protection tools into practice are important.

How Do Criminals Steal Your Identity?

There are many ways that identity scammers can steal your identity, these include:

  • A phishing email that gets your information allows the thief to take over your identity.
  • Skimming devices that take the information off your card while you are trying to make an ATM withdrawal or pay for gas, etc.
  • Hacking a publicly unsecured network or account.
  • Dumpster diving for bills or information that someone has thrown out.
  • Social engineering in the form of impersonating or playing the role of someone else, passing on false information by phone call, or in person.

Even if someone has been following your social media presence, your stories and images could have small pieces of information that identity thieves could put together to piece together your identity.

What Are Identity Theft Warning Signs?

Some common warning signs to look out for include:

  • Unidentifiable charges on your credit card or bank statement.
  • Unjustifiable refusal of credit.
  • Getting letters or bills for accounts you never opened.
  • Strange notifications about password resets or logins.
  • Your credit report contains errors.

How Do You Respond to Identity Theft?

If you determine that your identity has been compromised, do the following right away:

Step 1: Report the Identity Theft

  • File your identity theft report with your country’s consumer protection agency (the FTC in the U.S.).
  • File a complaint with the local police.
  • To freeze or terminate your compromised accounts, notify your bank and credit card companies.

Step 2: Monitor and Protect Your Accounts

  • Put a fraud alert on your credit reports through the national credit reporting agencies.
  • Look for any unauthorized activity on your credit reports.
  • Set up two-factor authentication and change your passwords.

Step 3: Use Identity Theft Protection Tools

Employing an identity theft protection service can help detect suspicious activity, monitor your personal information, and notify you in real time of suspicious activity.

How Can You Prevent Identity Theft in the First Place?

  • Avoid sharing personal information on social media.
  • Use strong, unique passwords and a credible password manager.
  • Be wary of suspicious emails and links.
  • Review your bank statements and credit report regularly.
  • Use encrypted, secure websites when buying something online.

Why Is Awareness About Identity Theft So Important?

Understanding what identity theft is allows you to respond early to threats and secure your personal information. Since the landscape of cybercrime is constantly changing and rapidly evolving, simply being aware and mindful is your first line of defence. Whether an individual or a business, keeping an alert approach is vital in protecting your identity.

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