Did you know that nearly one in three Americans experience some form of identity theft in their lifetime? Identity theft is one of the most widespread crimes today. Yet many people remain unaware of the potential dangers it poses.
What are the warning signs of identity theft and how can you protect yourself? In this article we will help you find all the answers to these questions. But first of all, it is worth understanding what exactly this cybercrime is and why you should avoid it.
The real dangers of identity theft
Various personal data represents your identity – from your name and address to your social security number, banking information and online account credentials. A criminal can target you for identity theft by stealing one or more of this data.
The types of crimes they can subsequently commit are countless. For example, they may commit financial fraud and account takeovers. They can also sell your data on the dark web for a high price.
But it does not stop there ; Scammers can also take your identity and target other people for fraud, such as investment scams and fake benefits claims. And when these crimes are traced back to you, you risk having to pay fines, fees, or even criminal prosecution.
Warning signs of identity theft
The good news is that you can largely avoid or mitigate these threats by learning to identify the most common warning signs.
These include:
Collection company calls
When criminals obtain credit using your identity, debt collectors may contact you to ask you to repay.
Unusual items on your credit card or bank statement
This is often a sign that a fraudster has had access to your credit card data or online banking credentials. Credit card fraud, in particular, is widespread: 151 million Americans fell victim to it in 2022.
Unexpected Reviews from Retailers, Lenders and Credit Card Companies
For example, you may receive a letter from a lender about a loan you never took out or a communication from a retailer about a subscription you never purchased.
A bad check
If a vendor contacts you about a bounced check when you know your checking account has sufficient funds, it is likely that your account information has been compromised.
Refusal of credit
It happens that your loan, mortgage or credit card application is rejected even though your financial situation is healthy and you meet the required criteria. This can happen when cybercriminals obtain credit without your knowledge, exploiting your borrowing capacity to the maximum.
Bills you don't recognize
When a seller or service provider sends you an invoice for a product or service that you did not request, there is a good chance that a fraudster is behind the invoice.
Unexplainable lucrative and tax activities
The tax authorities may inform you that you have already completed your tax return when this is not the case. Or, your Social Security return may indicate an additional source of income that you are not aware of. These types of incidents are usually the result of an identity theft scam.
Claims for compensation rejected
Health insurance fraud costs customers and businesses $36.3 billion each year. In this type of scam, criminals can claim medical expenses under another person's name. Victims usually only learn about this when insurance companies refuse to reimburse their costs after reaching the set limit.
Unusual details in credit reports
Your credit report may show an unknown account or an unexplainable credit inquiry. These elements are often a sign of identity theft.
Suspicious activity on an online account
Some websites, such as Google, notify users of unusual login attempts, as well as their location and IP address. These attempts may indicate an account violation. Other signs may be your account being locked and changes in your profile details.
Protect your identity
Protecting your personal data is essential to prevent criminals from stealing your identity. What steps can you take to protect your sensitive information?
Practice sharing with full knowledge of the facts
Be careful when posting updates on social media or sharing personal information via WhatsApp, email or any other communication channel. Avoid transmitting unnecessary information to apps, websites, and your browser by blocking app permissions, rejecting cookies, disabling data tracking features, and deleting your browsing history. Keep your passwords and usernames safe, without sharing them with friends, family, or co-workers.
Also remember that paper versions are just as risky as digital information when they fall into the wrong hands. So keep your passport, birth certificate, and tax, social security, bank, credit card, and insurance statements in a safe place to prevent them from being lost or stolen.
Avoiding phishing scams
Think twice before granting requests for data from others, even if they appear legitimate. Use PhoneHistory to verify caller identities and check for typos and unusual references in written communications to identify impostors.
Do not hesitate to contact the person or organization concerned to confirm that the request for information came from them.
Guard against malware threats
Protect your devices by installing antivirus and updating your usual software. Also avoid clicking on unverified links and attachments shared through emails, messages, social media and online advertisements.
Carry out regular checks
If you often let your mail pile up, it's important to get into the habit of checking it as soon as it arrives. Likewise, check your bank, credit card and subscription statements frequently to identify suspicious activity before it escalates. It is also essential to review your credit report every two months.
Additionally, do background checks at least twice a year. You can use a search engine and data aggregator to find any unknown information related to your name.
To conclude
Identity theft can have alarming consequences, often leading to recurring events that continue for many years. It is therefore essential to understand its warning signs and take effective measures to protect your personal data in order to stay safe.
If your identity is at risk, keep a record of the incident and report it to the Federal Trade Commission. Depending on the severity of the incident, it is also important to notify the local police.