Practical Tips for Preventing Identity Theft

Identity theft has become a serious problem for Americans. Reports show that the Federal Trade Commission (FTC) received 1.4 million identity theft reports in 2020. To make matters even more concerning, all types of fraud have been on the rise since 2000.

While concerning, this news doesn’t have to mean you will become a victim. Taking a few steps can help protect you from identity theft.

Regularly Review Bank Statements and Credit Reports

If someone gains unauthorized access to one of your banking or credit accounts, you can usually see the activity on your monthly statement.

With today’s online accounts, though, you don’t have to wait to receive your monthly statement. Set a reminder to review your checking and credit activities once a week. If you don’t recognize a charge, reach out to your banking institution to address the issue. They might be able to reverse the charge and take further steps to protect your accounts.

Additionally, review your credit report at least once per month to find any loans, banking accounts, or credit card accounts that someone else might have opened in your name.

Enable Multi-Factor Authentication to Improve Security

Multi-factor authentication (MFA) improves your banking security by having you verify your identity in at least two ways. For example, you might access your online checking account by entering your username and password. Then, the website could ask you to answer a personal question strangers couldn’t answer.

In some cases, institutions will text you a temporary PIN to confirm your identity. That way, you can only access the account when you have your phone. Unless someone has stolen your mobile device and figured out its password, the verification process will prevent them from doing any harm.

Keep Personal Information Confidential

Never give anyone personal information that could help them commit identity theft. You can protect your information by:

Securing important documents in a safe or deposit box
Encrypting digital documents stored on your computer or mobile device
Refusing to answer personal questions when someone calls or emails you

While you want to protect information like your Social Security and credit card numbers, you should also stay quiet about any topics you might use to confirm your identity online.

Does a website ask you to confirm your identity by entering the name of your childhood home? Keep that bit of information secret. Do you use the name of a pet as a password? Again, that’s information you want to keep to yourself.

Be Wary of Unsolicited Emails

Phishing scams often use emails to collect information that helps criminals commit identity theft. It’s best to ignore all suspicious emails. If you receive a suspicious email at work, you might need to report it to your manager and IT department.

Unfortunately, scammers have gotten very good at making fraudulent emails look legitimate. Their emails might include company logos or government emblems that trick you into responding.

Some will even use email addresses that are very similar to the addresses of legitimate organizations. For example, a scammer trying to impersonate someone from Village Bank might create an email address like support@villagbank.com. If you don’t pay close attention, you could easily mistake the fake address for a real Village Bank address.

The FTC has identified some common strategies scammers use to trick consumers. Be especially cautious when emails:

Ask you to confirm personal information to access your account
Include invoices for products or services you haven’t purchased
Ask you to click on a link to complete a payment

Of course, criminals constantly invent new ways to take advantage of people. If anything seems a little off about an email, don’t trust it.

Freeze Credit Reports to Prevent Unauthorized Access

When you freeze credit reports, banking institutions can’t open new accounts in your name. That’s good news for anyone concerned about identity fraud. If you don’t plan to apply for a new line of credit in the near future, freeze your credit reports for additional protection.

You can freeze your credit reports by contacting the three credit bureaus via these web pages: