How is our information stolen?
A common reason identity theft can occur is from dumpster diving or mailbox surfing.
It is so easy for thieves to pull confidential information from mailboxes and trash. It is best practice to do business through secure, encrypted means electronically, but if you receive paper statements or other confidential documents, it can help if you keep a locked mailbox and shred those documents before throwing out.
Unfortunately, thieves are getting better at thieving, and our information can also be stolen through electronic means. There have been a few mass data breaches from companies in recent years. These can be serious and scary, although this is similar to an airplane crash compared to a car crash. A traveler is over two thousand times more likely to die in a car crash in any given year compared to in a plane crash, but a plane crash seems scarier since it typically involves many people at once.
Still, there is day-to-day online identity theft that occurs from scammers clever ways of tricking folks, such as "phishing" links. While it is generally safer to do business through secure, encrypted means electronically, we still need to be careful.
How can we protect ourselves?
I'd suggest following a simple list of do's and don'ts.
Do:
- Shred confidential documents
- Promptly remove mail and keep a locked mailbox
- Freeze your credit with the major credit bureaus
- Sign-up for informed delivery through USPS to see which mail you are supposed to receive each day
- Review your free credit reports at least 1-2 times each year
- Review account statements on a regular basis
- Sign-up for notifications from your financial institutions, if available
- Promptly report any unauthorized transactions
- Regularly update your computer's operating system
- Create unique passwords and consider using a password manager
- Use anti-virus/malware software on your computer
Don't:
- Share your personal information unless you know who is asking for it and why. This is especially true for any urgent pop-up request or emails
- Store account numbers or passwords in your browser
- Use obvious answers to security questions
- Send confidential information in emails that are not encrypted (e.g. Gmail, Yahoo, etc.)
- Access confidential information using unsecured public Wi-Fi or a publicly provided computer
What do we do if we become victim of identity theft?
Falling victim to identity theft is serious. It can take a lot of time and, in some cases, money from you and your life. Fortunately, there are easy steps totake to avoid any real consequences from happening if you find yourself in an identity theft situation.
1. Report your situation to your financial institutions
2. Potentially file a police report
3. Set-up a fraud alert through the major credit bureaus (Equifax, Experian, TransUnion)
4. Report your situation to the Federal Trade Commission
5. Review your credit report - Sometimes, it makes more sense to review in 1 month since credit bureaus generally report credit activity in arrears.
These steps are a great starting point. However, you can do your own research based on your situation and reach out to a financial advisor.
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Read more articles by Zachary Jennings