By Nellie Schlachter, Vice President-Retail Market Manager, Synovus Bank
Writers have spun countless books and movie plots around the theme of one person pretending to be another. But the real-life crime of identity theft is serious business. The impact on victims can include damaged credit, financial ruin and a lengthy, frustrating recovery process.
Here’s what you should know about how identity theft can put your financial safety at risk — and what you can do to protect yourself.
What is identity theft?
According to the Federal Trade Commission, identity theft occurs when someone uses your personal information (such as your name, address, Social Security number, your bank account or credit card information) without your permission.
Tip: Be sure to check your credit report for errors or fraud at least once a year.
Frequently encountered forms of identity theft include:
Tax ID theft – Using another person’s Social Security number to file a phony tax return and steal the refund
Medical ID theft – Using someone else’s personal information to obtain medical services or submit fraudulent bills to a health insurance company
Child ID theft – Stealing the identities of minors (who may not catch up to the deception until they become adults) and using their Social Security number to open bank or credit card accounts or apply for a loan, government benefits, rent or utilities
Senior ID theft – Using a senior citizen’s personal information to fraudulently access their financial assets or benefits (a crime usually committed by medical and long-term care services employees or caregivers who have access to a victim’s personal information)
Social ID theft – Setting up a bogus social media account with another person’s name, photo and personal data
The best defense against identity theft is to be on alert for warning signs, use available technical safeguards, and react promptly to any potential breach of your personal data. USA.gov offers several guidelines.
Review your credit reports at least once a year.
You can get a free copy of your credit report once each year from the three national credit-reporting agencies: Experian, Equifax and TransUnion. Be sure to check the reports for errors, especially any accounts listed that you didn’t open yourself. You can request your free credit reports through this central website: www.annualcreditreport.com/index.action.
Use strong, complex passwords.
It’s especially important to use strong passwords for sensitive information, such as your bank, credit card, shopping and other financial accounts. Enable the security features on any mobile devices where you have downloaded any banking apps.
Keep important documents in a safe.
Instead of carrying your Social Security card in your wallet, lock it away in a safe, along with your passport. Keep copies of your driver’s license and credit cards in a secure place so that if the original items are lost or stolen, you can quickly have them cancelled and replaced.
Freeze your credit reports.
If you learn about a data breach or other event that may have exposed your personal information to potential theft, one option for stemming the damage is contacting the three main credit bureaus to freeze your credit reports, notes the Better Business Bureau. This prevents any fake “you” from applying for new credit in your name. If you want to apply for credit later, you will need to temporarily “thaw” the reports so lenders can access them. Credit freezes and thaws are usually free for victims of identity theft. The Better Business Bureau notes that if you’re taking this step as a precautionary measure, you’ll pay a $3 to $10 fee in most states.
Watch out for mobile accounts.
Even the armor of a credit freeze can have chinks, as cybersecurity expert Brian Krebs points out. For instance, many identity thieves have managed to open mobile phone accounts in the names of people who had frozen their credit reports. That’s because, instead of using Equifax, Experian or TransUnion to vet customers, some mobile companies check applicants’ credit through the National Consumer Telecommunications and Utilities Exchange (NCTUE).
To prevent this problem, be sure to place a separate freeze with the NCTUE as well as the big three.
A Good Defense
The long list of things you must do to protect yourself against identity theft shows that a good defense requires significant effort. Each of these steps, though, will make identity theft attempts that much more difficult. Get into the habit of blocking identity thieves wherever you can, and your financial security will be that much stronger. If you believe you’ve been the victim of identity theft, follow steps from the Consumer Financial Protection Bureau: www.consumerfinance.gov.
Important Disclosure Information
This content is general in nature and does not constitute legal. tax. accounting, financial or investment advice. You are encouraged to consult with competent legal. tax. accounting. financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information. do not endorse any third-party companies. products, or services described here, and take no liability for your use of this information.
Federal Trade Commission. “Avoiding Identity Theft,” https://www.consumer.gov/articles/1015- avoiding-identity-theft (https://www.consumer.gov/articles/1015-avoiding-identity-theft). accessed August 2, 12018. Back USA.gov,”Identity Theft,” http s://w ww.usa.gov/id entity -the ft (https://www.usa.gov/identity -theft). accessed August 2, 2018. Back
Federal Trade Commission, “Child Identity Theft,” https://www.consum er.ftc.gov/articles/00 40 -child identity-theft, accessed August 14, 2018. Back
Better Business Bure au. “BBB Tip: Credit Freezes and Fraud Alerts,” September 8, 2017, https://w ww.bbb.org/council/news -events/news-releases/2017/09/bbb-tip-credit-freezes-and fraud-alerts/ (https://www.bbb.org/counciI/news-events/news-releases/2017/09 /bbb -tip -credit- freezes-and-fraud-alerts/). accessed August 2, 2018. Back
Krebs on Security, “Think You’ve Got Your Credit Freezes Covered? Think Again,” Brian Krebs, May 9, 2018, https ://k rebsonsecurity.com/2018/0 5/another-credit-freeze-target-nctue-com/ (https://krebsons ecurity.com/2018/05/another-credit-freeze-target-nctue-com/), accessed August 6, 2018. Back
National Consumer Telecom & Utilities Exchange, “Disclosure Reports Provide Consumers Information Contained in Their Data Re port,” https ://www .nctue.com/ Consumers, accessecl September 10, 2018. Back
Consumer Financial Protection Bureau, “Remedying the Effects of Identity Theft,” https://s3.ama zonaws.com /files.consumerfinance.gov/f/documents /bcfp _consum er- identity the ft-rights -summa ry_2018 -09 .pdf. accessed October 20. 2018. Back
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