A report suggests that 33% of Americans have become a victim of identity theft at some point in their lives. This percentage is almost three times higher when compared with other developed nations. Shocking, right?
Bad actors and scammers are always improvising and finding new ways to steal our sensitive information. And I believe it’s high time that we learn more about identity theft and stop it once and for all.
Here, I’m going to explain everything that is needed to know about identity theft. So, if you want to stay safe from identity theft, then read on:
What is Identity Theft?
In identity theft, scammers may use your social security number, credit card information, bank information, social media accounts, or anything containing sensitive information to commit fraud. To do so, the bad actors may use various sophisticated methods without your knowledge.
Once the bad actors have access to your sensitive information, they may use it for:
- Making transactions
- Committing crimes
- Taking a loan
- Making health insurance claims
- Filing tax returns
Unfortunately, bad actors are not limited to the above measures only as they may do whatever they want with the stolen data.
Now, let’s explore different types of identity theft that people may fall victim to:
Types of Identity Theft:
Although there are different types of identity thefts, here, I’ll only discuss the major ones:
- Financial Identity Theft:
In financial identity theft, bad actors may access your existing bank accounts and make unauthorized transactions. Scammers may also create new bank accounts, take hefty loans, or file fake tax returns using the stolen information. Resultantly, it may create legal issues or affect the victim’s credit score.
- Medical Identity Theft:
In medical identity theft, the purpose of identity thieves is to collect the health insurance information of a person. Once scammers get access to such information, they may file fake health insurance claims, and buy prescribed drugs, or health gadgets by using the stolen information.
- Child Identity Theft:
Child identity thieves particularly target children because, most times, they’re easy prey for them. Identity thieves may target children’s social accounts and gadgets, or use sophisticated methods like phishing or vishing to obtain information to commit fraud.
- Synthetic Identity Theft:
Synthetic identity theft occurs when scammers combine real information with fake information to create a new identity. Using the newly created fake identity, scammers may open new bank accounts, make fraudulent transactions, take loans, or commit other fraud.
How Do Identity Thieves Access Our Data?
Now, let’s see what measures do identity thieves take to steal our data:
- Internet Hacking:
The Internet is one of the most common mediums scammers may use to steal our information. Most people may store their sensitive information on smartphones or laptops. And these gadgets may be connected to the internet most times. So, the internet connection you’re using should be secure.
Otherwise, hackers may exploit your connection, install malware through it, or redirect you to visit malicious websites. Plus, they may also track your browsing history and obtain valuable information through it.
- Phishing Attacks:
In phishing attacks, bad actors may impersonate a reliable authority, for instance, a company’s representative, and target people via scam emails, phone calls, or text messages.
Most times, the emails contain malicious attachments or links and a virus may enter your device as soon as it is clicked on. In some instances, bad actors may first gain their victim’s trust, and then persuade them to download malware, disguised as an app or software.
This way, identity thieves access sensitive information and may exploit the data in any way possible.
- Unsecure Browsing:
Generally, most websites on the internet may be safe. However, malicious websites exist and most people may not even know when they visit one.
Bad actors may use different methods to target people via websites. For instance, they may put malvertisements i.e., ads containing malicious code on popular websites. This way, when people click on the ad, the malicious code creeps inside their devices and steals data.
- Data Breaches:
Large organizations like financial institutions or healthcare providers are usually the victims of data breaches. Identity thieves may take an innovative approach to get past the security measures of large organizations to access their data.
Then, they may obtain people’s sensitive information, for instance, address, social security number, bank details, and more which can be utilized to commit fraud.
Protective Measures Against Identity Theft:
Use a Reliable Internet Connection:
As I’ve discussed above, identity thieves may use your internet connection to steal information. So, it’s vital to have an internet connection that keeps your information stored on devices secured.
Personally, I’ve been quite satisfied with my internet service provider (ISP), Spectrum, because it offers Security Shield and antivirus protection for additional device and network safety. Adding Advanced WiFi with any of the Spectrum Internet plans can keep your devices and information safe.
For instance, it notifies me whenever I accidentally visit a malicious website. Plus, the security suite’s artificial intelligence (AI) enabled technology offers resistance in case my device comes in contact with scammers.
Use Virtual Private Network and Firewall:
Using a virtual private network (VPN) to secure your sensitive information can be a great choice. It’s because a VPN encrypts your incoming and outgoing data with the help of a VPN server. Furthermore, a VPN also changes your device’s IP address and assigns it a fake one. This way, a VPN hides your online activity from identity thieves on the internet.
That said, a VPN may not offer protection if you are willingly sharing your information on the internet. I’ll explain this further in the next heading:
Don’t Share Sensitive Information on the Internet:
Technically, protective measures may not secure your data from identity theft if you willingly share information on the internet. . Be it via emails, private chats (unless they’re end-to-end encrypted), or on social media platforms, identity thieves may access it.
So, it’s never a great idea to share any piece of sensitive information on the internet, even if you’re sharing it with a trusted person.
Use Strong Passwords and 2-factor Authentication:
Strong passwords may not always ensure the ultimate security, but they’re important. It’s because strong passwords are difficult to crack and novice scammers may not be able to bypass them. And, be it your device, social media accounts, or financial apps, make sure to have a strong password.
Generally, a strong password includes a mixture of upper and lower-case alphabets with alphanumeric and special characters. In addition, always enable 2-factor authentication (2FA) if it’s available on any platform. When 2FA is enabled on any account, it becomes harder for bad actors to breach it.
Winding Up: How to Know if You’ve Targeted by Identity Thieve:
The below situations are only a few ways to know if you’ve been targeted by an identity thief. However, if you find a relatable situation, visit IdentityTheft.gov as soon as possible. Here, you may lodge your complaint and find actionable ways to minimize or reverse the damages.
- Unrecognizable withdrawals from your bank account.
- Credit card charged for products you didn’t buy
- A sudden drop in your credit score.
- Unexpected medical bills and claims letters.
- Unrecognizable bank accounts are mentioned on your credit report.
