You’ve probably heard quite a bit about identity theft if you’ve noticed the news within the past two decades. You may not, however, understand what it is and what it can mean for your overall financial security and sense of well-being. In the absence of physical confrontations, there are few things more sinister than identity theft. The better you understand what it is, the better you can protect yourself against identity theft and the devastation it leaves in its wake. Here’s what you need to know.

How Identity Theft Occurs

Most people focus solely on the financial nature of identity theft. That may be what they fear most. However, many types of identity theft can be equally devastating – and costly. These are a few types of identity theft that commonly occur:

• Financial identity theft is where people use your name to obtain credit or your existing credit cards and bank account information to make purchases.
• Social Security identity theft is where people apply for loans, credit cards, etc., in your name and then do not pay the bills. In addition, some identity thieves have used this information to apply for and receive medical benefits, disability benefits, and retirement benefits they are not entitled to receive.
• Medical identity theft occurs when people use your medical insurance to receive free medical care, treatments, medication, and surgeries.
• Tax identity theft takes place when people use your information to file bogus tax returns and collect your refund.
• Criminal identity theft occurs when people use your information when arrested for a crime – leaving you with a criminal record to unravel.

People steal identities by stealing wallets, using skimmers at gas stations and ATMs, online “phishing” scams, going through your garbage, getting your mail before it comes to you, and simply using the information you freely and openly share online about your life – and the lives of your children – online.

While the internet has made it easier for people worldwide to steal your identity, that doesn’t mean that low-tech options aren’t equally used – often by those much closer to home. Protecting your information can help you avoid becoming a victim of this horrific crime.

Recognizing Signs of Identity Theft

While you would immediately notice if someone stole your car, came into your house, and took off with your television, it isn’t always as simple to know that someone has stolen your identity. There are things, however, that might clue you into the fact that someone else is using your identity. These are a few things to watch for:

• Unfamiliar medical bills.
• Charges on your bank or credit card statements you didn’t make.
• Notices from the IRS, Social Security Office, or other government agencies that do not appear appropriate.
• Bills for loans or credit cards you don’t possess.
• Notifications or charges from utility companies that are unfamiliar to you.
• Debt collection calls, letters, etc., for debts you do not owe.
• Loan application denials for loans you did not apply for.
  Expected mail is missing from your mailbox.

These are a few signs that you may have an identity theft problem and should consider researching further to get to the bottom of the problem. It is not a situation where ignoring the problem can be beneficial to you at all.

Protecting Yourself from Identity Theft

Protecting your personal information is paramount in today's digital age, where identity theft and online fraud are increasingly prevalent. Here are key recommendations to safeguard your details and ensure your privacy remains intact:

• Control Access to Information: Determine who can view your personal and private details on public platforms and in private databases.
• Secure Documents in Your Home: Store critical documents like passports, driver's licenses, and social security cards in a secure location, such as a locked safe, to prevent easy access.
• Digital Footprint on Social Media: Be selective about the personal details you share on platforms like Facebook, Twitter, and Instagram. Ensure only trusted individuals can see your posts by regularly reviewing privacy settings.
• Engage with Credit Monitoring Services: Subscribe to services that actively monitor changes or suspicious activities related to your credit report and act promptly on any alerts received.
• Beware of Phishing and Scams: Exercise caution with unsolicited emails or messages asking for personal information or passwords, and always verify the authenticity of such requests.
• Regularly Update Passwords: Ensure you use strong, unique passwords for your online accounts. Consider using a trusted password manager for convenience and security.
• Check Financial Statements: Regularly review your bank and credit card statements, check for unauthorized transactions, and report discrepancies immediately.
• Secure your Internet Connection: Protect your online activities by using a VPN (Virtual Private Network) on public Wi-Fi and ensuring your home Wi-Fi has updated security settings and is password-protected.

What to Do if You’re a Victim

Discovering that someone has stolen your identity can be an overwhelming experience. Knowing the proper steps to take when this occurs can help you regain control and limit the damage. Here's a guide to help you navigate the aftermath:

• Contact the Federal Trade Commission (FTC): Start by visiting IdentityTheft.gov. This website allows you to report the theft. It provides an interactive checklist tailored to your situation, guiding you through each recovery step. Alternatively, you can call the FTC at 1-877-438-4338, where they'll offer guidance on immediate actions and what to expect during the recovery process.
• Place a Fraud Alert on Your Credit Reports: Reach out to one of the three major credit reporting agencies—Experian, TransUnion, or Equifax. When you alert one agency, they must notify the other two. This proactive step ensures that potential identity thieves face additional challenges when opening accounts in your name, as businesses will first need to verify your identity.
• Review Your Credit Reports: Obtain free credit reports from all three major credit reporting agencies. Examine each report meticulously for any suspicious or unauthorized activities. Look for signs such as new accounts you didn't authorize or unfamiliar charges.
• Contact Affected Financial Institutions: If your review uncovers fraudulent charges or unauthorized accounts, it's crucial to contact the relevant financial institution immediately. They can advise on subsequent steps, which might involve closing the compromised account or disputing fraudulent transactions.
• File a Police Report: Reporting the identity theft to your local police department creates an official record of the incident. This record can prove invaluable when interacting with creditors or addressing potential legal repercussions in the future.
• Change Passwords and Secure Your Accounts: It's a good practice to update the passwords for all your online accounts, with particular attention to banking and email accounts. Opt for strong and unique passwords, and, if available, turn on two-factor authentication for added security.

Recovery from identity theft can be a lengthy and challenging process. It's essential to remain vigilant, continuously monitoring your accounts and credit reports to promptly identify and address any residual issues.

Takeaways

While it feels like the most personal of invasions, identity theft is usually committed by those who have no personal investment in the process. They are simply seeking financial gain and to cause mayhem. Failing to report and unravel the problem only allows them to dig deeper and do more harm to your financial health and good name. If you’re a victim of identity theft, your best bet is to act quickly to resolve the problem.