How to prevent falling victim to identity theft

According to the Federal Trade Commission, identity theft is on the rise and has doubled in frequency since 2019, ranking as the second most common complaint. Today, almost every American has had their personal information compromised at least once, and the risk that your identity will be stolen at some point, maybe more than once, is quite high. However, there are actions you can take to lessen the danger and move fast to repair the harm if you do end up being a victim.


Since humans have preserved distinct individual identities, thieves have tried to flee with them. The first, most heinous incidents entailed the murder of the victim and the criminal assuming their physical identity in order to escape the authorities or former acquaintances. Financial con artists figuratively sifted through trash or devised complex phone ruses to get the victims to divulge enough information to enable them to empty their bank accounts. However, the development of the internet was what really sparked the sharp increase in sophisticated large-scale identity theft.
Identity theft was first used in 1964 and is described as a felony in which someone unjustly gets and exploits another person's personal data in some way that involves fraud or deceit, usually for personal advantage. According to the FTC, 1.4 million cases of consumer identity theft were recorded in 2021, but industry analysts say that up to 90% of cases go undetected. According to Javelin Strategy and Research, 42 million Americans were impacted by identity fraud last year, resulting in $52 billion in damage.
Given the wealth of personal information about each of us floating about in cyberspace, it is hard to entirely protect oneself against this sort of crime. According to one former hacker turned security expert, the only reason more individuals haven't been attacked is that there aren't enough crooks to exploit all of the available data. Nonetheless, there are certain precautions that each of us may take to reduce the likelihood of an assault.

1. Put your credit on hold. 

Unless you are currently a borrower, a credit freeze stops any potential creditor from seeing your credit information. By law, each of the three agencies (Experian, TransUnion, and Equifax) must provide this service for free by creating an account and enabling or disabling the freeze in real time. This is the most effective barrier against fraudulent account openings in your name.

2. Keep track of your credit. 

Consider registering for one of the many free basic credit score monitoring programs that enables you to view your credit report and receive alerts when it changes. Three businesses offer basic free services: Credit Karma, Credit Sesame, and SoFi. Today, a number of credit card providers provide your Fico score without charge. Additionally, you are entitled to one free credit report per agency, which you can get at AnnualCreditReport.com.

3. Update your passwords! 

According to LastPass, 91% of users are aware that repeating passwords significantly increases the risk of theft, but 66% continue to do so. Make your passwords stronger and more distinctive. A password management tool can do it for you and even update your passwords on a regular basis. Also, whenever feasible, activate two-factor authentication (email or SMS verification).

4. Examine the statements.

Apart from a credit freeze, the best defence is constant monitoring. Examine bank and credit card statements carefully for any unusual or unexpected behavior, and notify the institution immediately if you see anything questionable.

5. Identity theft protection 

Subscription-based monitoring and mitigation services are currently worth $10 billion. Paid services may be worthwhile if you are unwilling to perform the work yourself or believe you are not diligent enough. However, it is critical to recognize that, contrary to their titles, these services cannot "guard" you from identity theft. Many, for example, promote surveillance of the Dark Web for your personal information while emphasizing that they cannot erase or block any material they uncover and cannot prevent identity theft.

Conclusion

The majority of identity monitoring subscriptions also include some level of insurance coverage to cover costs associated with addressing security flaws and, in certain circumstances, regaining stolen property. But keep in mind that you might be able to add less expensively comparable coverage to your homeowner's insurance policy.