What Are Two Ways You Can Guard Yourself Against Identity Theft?

Identity theft occurs when an individual’s personal identifying information, such as their name, Social Security number, or credit card details, is used without permission to commit fraud or other illicit activities. This unauthorized use can lead to financial harm, credit damage, and legal complications. The prevalence of identity theft highlights the importance of protective measures. Understanding how criminals obtain information is a first step in defending against these threats.

Protecting Your Personal Information

Protecting personal information prevents unauthorized access to sensitive data. Online security begins with strong, unique passwords for each account, combining letters, numbers, and symbols. Enabling multi-factor authentication (MFA) adds a layer of security, often requiring a second verification step like a code from a mobile device. This makes it harder for unauthorized users to access accounts even if a password is compromised. Regularly updating software and operating systems is important, as updates frequently include security patches that fix vulnerabilities exploited by cybercriminals.

Vigilance against phishing attempts is another online defense. Phishing scams typically involve fraudulent emails, text messages, or websites designed to trick individuals into revealing personal information. Signs of a phishing attempt include generic greetings, urgent calls to action, suspicious links, or poor grammar and spelling. Avoid logging into sensitive accounts or making financial transactions on public Wi-Fi networks, as these are often unsecured and can expose data to interception.

Securing physical documents and mail is important in preventing identity theft. Sensitive documents like bank statements, credit card offers, tax returns, and medical bills should be shredded before disposal. For incoming mail, promptly retrieving it from your mailbox or using a locked mailbox can deter thieves. When sending sensitive outgoing mail, using a secure collection box at a post office rather than leaving it in an unlocked home mailbox reduces the risk of theft.

Being cautious about sharing personal information, especially with unsolicited requests, is a protective measure. Whether online or over the phone, verify the legitimacy of any request for personal details before providing them. Identity thieves often solicit information through deceptive means, so exercise skepticism with unexpected inquiries. This awareness helps prevent disclosure of data that could be used for fraudulent purposes.

Vigilantly Monitoring Your Financial and Personal Accounts

Regular monitoring of financial and personal accounts is a strategy for early detection of identity theft. Regularly obtaining and reviewing credit reports from the three major credit bureaus—Equifax, Experian, and TransUnion—is important. Federal law allows for one free copy of your credit report every 12 months from each bureau through AnnualCreditReport.com, though weekly access has been permanently extended. These reports should be scrutinized for unfamiliar accounts, unauthorized inquiries, or incorrect personal details.

Regularly reviewing bank and credit card statements is essential to identify suspicious transactions. Many financial institutions offer online access to statements, often updated daily, making it easier to spot unauthorized charges quickly. Setting up alerts for transactions, large purchases, or international activity can provide immediate notification of potential fraud, allowing for swift action to mitigate damage. Consistent oversight of financial accounts helps catch fraudulent use of existing accounts early.

Reviewing mail and email communications can reveal signs of identity theft. Missing bills or financial statements that typically arrive by mail could indicate that an identity thief has submitted a change-of-address request to divert your mail. Similarly, receiving unexpected credit cards or notifications for accounts you did not open are signs that someone may be using your identity. Promptly investigating any such anomalies can help uncover and address fraudulent activity before it escalates.

Identity theft protection services can provide automated monitoring and alerts. These services typically monitor credit files, public records, and other databases for suspicious activity related to your personal information. They can alert you to new accounts opened in your name, changes to your credit report, or exposure of your data in breaches. Many services also offer assistance with identity restoration should theft occur, guiding victims through the process of recovering their identity and repairing financial damage.