How to Minimize the Risk of Identity Theft
During a typical day, you may mail off a check to your utility company, purchase a gift from your favorite online store, and pay for groceries with a swipe of your debit card. You may not pay much attention to these financial activities, but each one could potentially be a golden opportunity for thieves to steal your identity to commit crimes. Millions of adults in the U.S. fall victim to identity theft each year, but there are ways to reduce your chances of being targeted.
What Is Identity Theft?
Identity theft refers to someone stealing your personal information, such as your Social Security number, name, credit card, debit card, checking account number, or driver’s license to commit crimes. Thieves want to use the information to impersonate victims so they can spend as much money as quickly as possible.
Are There Different Kinds of Identity Theft?
Thieves can commit identity theft in a variety of ways. Sometimes thieves make use of your existing credit account data or debit card information to buy products and services, using either the actual card or just the account number. Often, victims discover such thefts when they receive monthly bank or credit card statements. Thieves can also use your stolen information to open new accounts, posing as you. It can take longer to discover this type of identity theft because monthly account statements are mailed to an address established by the thief. The statements won’t be mailed to you.
What Is the Most Important Step I Can Take to Protect Against Identity Theft?
Check your credit report at least once a year. If you see suspicious items on your report, you can investigate. Federal law gives you the right to a free credit report, once every 12 months, from each of the three main consumer reporting companies: Equifax, TransUnion and Experian. The three agencies have a website to access your free credit report at AnnualCreditReport.com.
How Can Using Online Banking Help Reduce the Risk of Identity Theft?
By using online banking for your checking, savings, and credit card accounts, you can easily monitor your account activity whenever you want. You don’t have to wait for a paper statement to arrive at the end of the month. This means you can catch any potential red-flag activities immediately. Many financial institutions offer online banking for free.
How Can I Protect My Credit and Debit Cards?
- Don’t carry a large number of credit cards and debit cards in your wallet.
- Make sure that your credit or debit card is returned to you whenever you use it. If you cannot find it, try to recall the last place you used it and call that place immediately. If you cannot locate it, call the credit card company or bank and report it as lost.
- Never voluntarily give out your credit or debit card number or any other personal information over the phone or online unless you make the contact and you have an established relationship with the institution or business.
- Memorize your debit card personal identification number (PIN). Don’t carry it on a piece of paper in your wallet.
How Do I Protect Myself Online?
- Avoid replying to "phishing" email messages. These appear to be from real businesses such as your bank. The emails ask you to visit a website that looks legitimate. Once there, you are asked to provide personal information such as your Social Security number or your bank account number. Don’t do it.
- Make sure when shopping online to only visit sites that have strong security (such as VeriSign) and privacy policies.
- Make sure your computer is protected with the most current antivirus software.
How Do I Protect My Social Security Number?
- Avoid carrying your Social Security number in your wallet.
- Don’t give out your Social Security Number unless absolutely necessary for tax forms, financial transactions like buying property, or employment records.
- Don’t print your Social Security Number on your checks.
How Do I Protect My Checking Account?
- If you order new checks, be sure to watch the mail and if they don’t arrive in the expected timeframe, call your bank. Even better, go to your bank to pick up your new checks.
- Store boxes of unused checks in a safe location in your house such as a locked file cabinet.
- Print as little identifying information as possible on your checks. Definitely avoid having your driver’s license number or your Social Security number printed on your checks. Also consider leaving off your phone number.
- Use online banking or your monthly paper statement to regularly check records of deposits and withdrawals.
For more information:
Privacy Rights Clearinghouse/UCAN
Federal Deposit Insurance Corporation’s website about Identity Theft
