Identity theft is something we don’t think will happen to us, but a crash course in financial literacy wouldn’t be complete without it. Unfortunately, cases of identity theft in the United States are on the rise. According to the 2017 Identity Fraud Study, $16 billion was stolen from more than 15 million consumers in 2016. The good news is, you can take steps to understand and avoid identity theft. Read on to learn how you can protect yourself to make sure you don’t become a victim.
What is Identity Theft?
Identity theft is when your private information is used fraudulently in order to impersonate you, usually for financial gain. Your information can be used by criminals for many different reasons, including opening lines of credit in your name, filing false tax returns using your Social Security number, receiving medical services under your name and more. Even children aren’t immune to identity theft, as their Social Security numbers can be used to apply for credit cards, government benefits and other services.
Signs Your Identity May Have Been Stolen
There are many different signs that someone may be fraudulently using your identity for their own personal gain. Just a few of these signs are:
- Bank withdrawals and account activity that were not done by you
- Missing mail including bills with sensitive information
- False changes on your credit report
- Drastic credit score changes
- And many others
What Do I Do if My Identity Has Been Stolen?
If you believe that your identity may have been stolen, it is important to act quickly. First, contact one of the credit reporting agencies and ask them to place a fraud alert on your credit report. Then, contact customer service for any accounts you believe may have been compromised, like the bank or credit card company, and report suspected fraudulent activity. After looking over your other accounts and checking for other instances of fraud, file a report with the Federal Trade Commission and contact your local police department.
Tips to Protect Your Identity
Protecting your identity starts with protecting your personal information, both physically and online. Check out the following tips to protect your identity from fraudsters.
- Keep your online passwords strong, especially for your bank, credit cards and purchasing accounts.
- Check your credit reports often.
- Protect your Social Security number, and don’t give it out over the phone or in writing to unauthorized personnel.
- Monitor your bank, credit card and other financial statements regularly to check for fraudulent activity.
- Install passwords on your computers and mobile devices and shred paperwork with personally identifiable information.
Identity theft is a serious crime that has the potential to do you significant financial harm. However, with this information, you can be better prepared if criminals strike.
For more information about protecting yourself from identity theft and common scams to avoid, visit www.usa.gov/identity-theft.
