You are a unique individual who has individual characteristics and a personality that no one matches. But if someone impersonates you with bad intentions, they are conducting the crime of identity theft.
In this article, we will discuss the definition of identity theft and ways you can prevent identity theft from occurring.
What Is Identity Theft?
Identity theft is a crime that occurs when someone uses your confidential data to pose as you or steal the data from you. Identity thieves might drain your bank and investment accounts, open new credit accounts, acquire utility services, and rob your tax returns, use insurance information to acquire medical services, or provide your name when arrested by the police.
Increased frequency of data breaches might mean that your personal information has already been exposed. In our modern, technologically advanced times, it is smart to take appropriate steps to prevent criminals from using your personal information to hamper your financial life.
Types Of Identity Theft And Their Warning Signs
Once the hacker has your personal information, they might use the same data in a variety of ways. Some of the common types of identity thefts are as follows:
Credit identity theft
Credit identity theft occurs when a criminal makes use of your personal information like birth date or social security number for the application of a new credit line.
Warning signs: you might notice unexpected changes in your credit score or accounts you do not recognize within your credit reports. You might also get court judgments against you or debt collection notices.
Child identity theft
Criminals tend to steal a child’s identity for the purpose of applying for credit on your child’s name. It is usually not discovered until the victim applies for credits in future, like college loans.
Warning signs: Your child is getting offers of credit cards or phone calls regarding late payments or debt collection.
Synthetic identity theft
Synthetic identity theft occurs when criminals use a patchwork of identities for the creation of a fictitious consumer by using a social security number. Then they apply for loans and credit cards. Later when the card is maxed out, the criminal disappears.
Warning signs: when you try to freeze the credit and discover that the social security number is already in use.
Taxpayer identity theft
Sometimes criminals use a social security number for filing tax returns to steal your tax credit and refunds.
Warning signs: You are unable to e-file your taxes as someone has already filed under your social security number.
Medical identity theft
Using someone else’s identity to get health services is medical identity theft. It’s harmful as it tends to mix medical histories, which allows doctors and hospitals to acquire wrong medical information.
Warning signs: Claims and payments you are not recognizing are included within your health insurance plans.
Account takeover
Account takeover is the process through which they will change your addresses and passwords that you have no access to.
Warning signs: A notification has arrived from your financial institution regarding the change of passwords or a transaction that you are not recognizing.
Criminal identity theft
Criminal identity theft happens when someone gives your name to law authorities during an arrest or investigation. This leads to false identification, like a fake driver’s license.
Warning signs: You are being arrested by the police without any known reasons, or you have been denied employment or promotion due to something found in a background check.
Tips To Avoid Identity Theft
Identity theft is a serious crime that can cause significant financial and emotional damage to victims. Here are some tips to help you avoid identity theft:
Secure Personal Information
Keep your personal information, such as your Social Security number, driver’s license, and financial account numbers, in a safe and secure place. Avoid carrying unnecessary documents containing sensitive data in your wallet or purse.
Use Strong Passwords
Create strong and unique passwords for your online accounts. Use a combination of upper and lower-case letters, numbers, and special characters. Avoid using easily guessable information like your name or birthdate.
Enable Two-Factor Authentication (2FA)
Whenever possible, enable two-factor authentication for your online accounts. This adds an extra layer of security by requiring a second form of verification, such as a text message or authenticator app, in addition to your password.
Be Cautious with Personal Information Online
Be careful about sharing personal information on social media and other online platforms. Identity thieves can use this information to piece together your identity.
Beware of Phishing Scams
Be skeptical of unsolicited emails, messages, or phone calls asking for personal information or financial details. Legitimate companies usually do not request sensitive information through email.
Monitor Your Accounts Regularly
Regularly review your bank and credit card statements for any unauthorized transactions. If you notice any discrepancies, report them to your financial institution immediately.
Secure Your Mail
Retrieve your mail promptly, and consider using a locked mailbox or a Post Office box to prevent thieves from stealing your sensitive documents.
Shred Sensitive Documents
Before disposing of old bills, credit card statements, or other sensitive documents, shred them to make it difficult for identity thieves to access your information.
Protect Your Social Security Number
Avoid carrying your Social Security card in your wallet and only provide it when necessary. Be cautious when sharing it with others and ensure it’s needed for legitimate purposes.
Use Secure Wi-Fi Networks
Be careful when using public Wi-Fi networks, as they may not be secure. Avoid accessing sensitive accounts or conducting financial transactions on public Wi-Fi.
Update and Protect Your Devices
Keep your computer, smartphone, and other devices updated with the latest security patches and antivirus software. Use reputable security software to protect against malware and viruses.
Monitor Your Credit Report
Check your credit report regularly for any suspicious activity. You can obtain a free credit report from each of the major credit bureaus once a year at AnnualCreditReport.com.
Be Careful with Unfamiliar Links
Avoid clicking on links in emails or messages from unknown sources. Hover your mouse over the link to see the destination URL before clicking.
Educate Yourself and Your Family
Inform your family members about the risks of identity theft and encourage them to take similar precautions.
By following these tips, you can significantly reduce the risk of falling victim to identity theft and protect your personal information. Remember, prevention is the best defense against identity theft.
Final Thoughts
Now, you have a fair idea regarding the ways you can tackle the ways if you have faced any identity theft issues. We also advise that you take guidance and assistance from an experienced and skilled identity theft lawyer or criminal defence lawyer to effectively know the ways you can save your unique personality from criminals and hackers.
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