Identity Theft: Prevention, Warning Signs, and Actions to Take if Your Identity Was Compromised

According to Federal Trade Commission (FTC) data, more than 1 million reports of identity theft^[1] were received through the IdentityTheft.gov website in 2023. Identity theft occurs when someone uses your personal information, such as a credit card number or your Social Security number, to commit fraud by obtaining a credit card, establishing a telephone in your name, or committing various other crimes. To protect yourself from potential identity theft, it is essential that you routinely monitor your financial account statements and your credit report.

Below are a few simple steps to help prevent identity theft, warning signs of identity theft, and what to do if your identity is stolen.

Preventing Identity Theft

The following material is, in part, provided by the FTC in “Protect Your Personal Information and Data.”^[2] The list below provides steps to decrease your chances of experiencing identity theft.

• Shred all statements. One way identity thieves acquire information is through trash-picking. Instead of throwing out bills and credit card statements, ATM receipts, medical statements, or junk mail solicitations for credit cards and mortgages, you should shred all papers with personal information.
• Destroy digital data. When you sell, trade, or dispose of a computer system, you should take extra steps to ensure the data is destroyed. Deleting the data or reformatting the hard drive may not be enough for tech-savvy thieves who can undelete files or recover data. Use a digital shredding product to ensure that data on the hard drive is destroyed.

  Before you dispose of a mobile device, check its owner’s manual, the service provider’s website, or the device manufacturer’s website for information on how to permanently delete information and save or transfer information to a new device. Remove the memory or SIM card from the device. Also, remove the phone book, lists of calls made and received, voicemails, messages sent and received, organizer folders, web search history, and photos.

• Be alert to impersonators. Make sure you know who is getting your personal or financial information. Do not give out personal information on the phone, mail, or internet unless you have initiated the contact or know who you are dealing with.

  If a company that claims to have an account with you sends an email asking for personal information, do not click on links in the email. Instead, type the company name into your web browser, go to their site, and contact them through customer service. You may also call the customer service number listed on your account statement. Ask whether the company sent a request.

• Use security software. Use firewalls, anti-spyware, and anti-virus software and keep them up-to-date.
• Use strong passwords. Do not use your birth date, mother’s maiden name, or the last four digits of your Social Security number for passwords.
• Encrypt your data. Keep your browser secure. To guard your online transactions, use encryption software that scrambles information you send over the internet. A “lock” icon on the status bar of your internet browser means your data will be safe when transmitted. Look for the lock before you send personal or financial information online.
• Be wise about Wi-Fi. Before you send personal information over your laptop or smartphone on a public wireless network in a coffee shop, library, airport, hotel, or other public place, see if your information will be protected. An encrypted website protects only the information you send to and from that site. If you use a secure wireless network, all the information you send on that network is protected.
• Do not give your Social Security number. Unless it is legally required, avoid giving out your Social Security number. Do not carry your Social Security card in your wallet. Do not use your Social Security number as part of a username or password you establish. Make a copy of your Medicare card and black out all but the last four digits on the copy. Carry the copy with you unless you use your card at the doctor’s office.
• Limit information on your checks. The next time you order checks, have only your initials printed on them rather than your first and last name. If someone takes your checkbook, they will not know if you sign your checks with just your initials or your first name, but your bank will be aware of how you typically sign your name.

  Also, if a phone number is printed on your checks, use your work phone number instead of your home phone. If you have a P.O. box, use that instead of your home address. If you do not have a P.O. Box, use your work address. When paying bills, write only the last four digits of your account number in the memo line so that anyone handling the check during processing cannot access your whole account number.

• Photocopy your license and credit cards. Make copies of both sides of your license, credit cards, and other important information in your wallet so you have all your account numbers and phone numbers to call if a problem arises. Keep the photocopies in a safe place.
• Do not sign your credit cards. Instead, write “PHOTO ID REQUIRED” on the back of them.
• Social networking. Avoid oversharing on social networking sites. If you post too much information about yourself, it could be used to answer security challenge questions for your accounts.
• Monitor your credit reports. The federal FACTA law enables you to receive a free credit report per year from each of the three credit bureaus — Equifax, Experian, and TransUnion. While reviewing the report, you should ensure that old accounts are closed and check for any new accounts, aliases, and suspicious mailing addresses. Do not contact the three nationwide credit reporting companies individually. You can order your free credit reports by phone at (877) 322-8228, visit www.annualcreditreport.com, or complete the Annual Credit Report Request Form available at ftc.gov/credit and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.^[3]

Warning Signs of Compromised Identity Information

• Withdrawals from your bank account that you cannot explain
• Not receiving your bills or other mail
• Merchants refusing your checks
• Debt collectors calling you about debts that are not yours
• Unfamiliar accounts or charges on your credit report
• Medical providers billing you for services you did not use
• Rejection by your health plan of legitimate medical claims because their records show you have reached your benefits limit
• Refusal of coverage under your health plan because your records show a condition you do not have
• IRS notification that more than one tax return was filed in your name or that you have income from an employer you do not work for
• Receipt of notification that your information was compromised by a data breach at a company where you do business or have an account

Actions to Take if Your Identity is Stolen

• Contact law enforcement. Report the crime to your local police department (you might also need to report it to the police department(s) where the crime occurred if it’s somewhere other than where you live). Keep the phone number of your investigator handy and give it to creditors and others who require verification of the crime. Credit card companies and banks may require you to show the police report to verify the crime.
• Notify credit bureaus and establish fraud alerts. Immediately report the situation to the fraud department at one of the three credit reporting companies — Experian, Equifax, or TransUnion. The company you call must tell the other two companies about your alert. Placing the fraud alert means your file will be flagged, and creditors must call you before extending credit. You can place an initial fraud alert for one year. You can renew it after one year. The fraud alert will allow you to request a free copy of your credit report from each of the three reporting companies. The credit bureaus can be reached at the following phone numbers:
  • Equifax: 1-800-685-1111
  • Experian: 1-888-397-3472
  • TransUnion: 1-888-909-8872
• File a complaint with the Federal Trade Commission for an extended fraud alert. Consumer complaints help the FTC detect patterns of fraud and abuse and can be filed at ww.identitytheft.gov. If you have created an Identity Theft Report, you can get an extended fraud alert on your credit file. With an extended fraud alert, you can get two free credit reports within 12 months from each credit reporting company. The credit reporting agencies must take your name off marketing lists for prescreened credit offers for 5 years unless you ask them to put your name back on the list. The extended alert lasts for 7 years.
• Credit freezes. You may put a credit freeze on your file; however, this may not stop misuse of your existing accounts or other types of identity theft. If you freeze your file, you can still get a copy of your free annual credit report. If a business, lender, or employer wants to review your credit report, you must ask the credit reporting company to lift the freeze. There is no cost to place or lift a freeze. A freeze remains in place until you ask the credit reporting company to lift it temporarily or remove it altogether. A credit reporting company must lift a freeze no later than three business days after getting your request by mail or within one hour for online and phone requests. You may contact the nationwide credit reporting agencies regarding a credit freeze at the following phone numbers:
  • Equifax: 1-800-685-1111
  • Experian: 1-888-397-3472
  • TransUnion: 1-888-909-8872
• Resolving fraud items. If your credit report shows that new accounts have been opened in your name, contact those creditors immediately by telephone and in writing. Creditors will likely ask you to fill out a fraud affidavit. Most businesses accept the Federal Trade Commission affidavit.

Conclusion

The world is becoming increasingly digital, meaning the number of identity theft cases will only continue to rise. While there’s no way to guarantee you’ll be safe from identity theft, taking small steps to preserve your safety and identity can significantly reduce your risk. If you have any questions, feel free to contact us.