Each year approximately 10 million Americans have their personal information compromised, and the number keeps growing. If criminals gain access to your personal information, they could hack into your financial accounts, open credit cards in your name or steal your tax refund. Many people find out about identity fraud attacks from their financial institutions after the deed has been done.
Members of the military can be particularly susceptible to identity theft and fraud. Frequent moves, opening and closing billing accounts, and major life changes like getting married or buying a house can put you more at risk.
Make it your mission to be proactive. Being vigilant about your personal and financial information security can help protect your information and keep criminals away.
Understanding identity theft and identity fraud
Identity theft and identity fraud are often used interchangeably, but what is the difference? To understand how to best shield yourself and your family, start by learning the subtle differences.
Namely, theft and fraud can be distinguished by how your stolen information is used.
When criminals commit identity theft, they use your personal information, such as Social Security numbers, birth dates, names and addresses to assume your identity. Once someone has this information, they can open new credit cards in your name, apply for jobs, and even take your tax refund.
On the other hand, identity fraud occurs when someone steals then uses personal information to commit a crime, like using existing cards to make fraudulent purchases. A criminal can’t use your identity or personal information to commit crimes without obtaining the information first. Thus, the two crimes go hand in hand.
Protecting yourself from identity theft
Every two seconds an American becomes a victim of identity theft according to a recent survey by CNN Money. Service members are particularly vulnerable because they’re on the go and more likely to embrace digital financial technology.
Here are some ways you can protect yourself:
1. Don't click on suspicious emails.
Most people are familiar with phishing, a tactic that includes using emails or fake websites designed to extract your personal information. Potential identity thieves may pose as credit card companies or financial institutions to contact you directly. When you’re being phished, you’ll receive an email that asks you to verify transactions or personal information. Poor spelling and unofficial URLs are the clearest indicators of phishing emails. If something looks suspicious, don’t click on it and contact the institution directly to verify information.
2. Avoid sharing highly sensitive personal information.
Don’t overshare online – this includes social media profiles. Sharing addresses, phone numbers and social security numbers online make you an easy target for identity theft.
3. Watch your mail and shred financial documents before throwing them out.
Pick up your mail regularly, especially if you’re receiving paper bills. You can drop off your outgoing mail at the post office instead of leaving it exposed to reduce your risk.
4. Mix it up and change your passwords.
A Security Week study shows that 75 percent of people use the same username and password for every site. This makes stealing your information easier, because once thieves have that information, they have access to everything you do online. Change things up and reset your passwords every few months to keep thieves at bay.
5. Stay ahead of the curve by watching for abnormal texts.
A relatively new form of identity theft is SMiShing, similar to phishing, but it occurs via SMS text messages. Typically you’ll receive a fake text message from your financial institution or credit card company saying your accounts have been compromised. The message will include a link for you to see the transaction or will request a callback number to discuss the issue. Protect yourself by staying alert and not opening or responding to suspicious messages.
6. Place an Active Duty Alert on your credit report.
The Active Duty Alertis a special fraud alert that is designed to protect service members. While the alert is active, companies will be required to take additional security precautions before granting credit in your name. If you’re deploying soon, request an Active Duty Alert on your credit report to help minimize identity theft risk.
What to do if your identity has been stolen
So you’ve made it your mission to stay alert to the warning signs of identity theft. You’ve seen something suspicious online or via email. You may have noticed errors on your credit report or started getting bills for new credit cards you didn’t sign up for. What do you do now?
If you think you’re a victim of fraud or identity theft, contact your financial institution and credit card companies to close any accounts that have been compromised. Always report theft to the Federal Trade Commissionand the Social Security Administration if your Social Security number has been compromised.
Then, get a copy of your credit report so you can dispute any errors or fraudulent activities before they impact your credit card score. If there’s a possibility that your checkbook has been lost or stolen, don’t forget to contact a check verification company.
Even if you take all the necessary precautions to protect your information, sometimes the unexpected happens and your information is compromised. It’s a known risk in today’s digital world. Be vigilant, stay alert and know what to do if your identity is stolen – the best offense is a great defense.
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