As people continue to live digital lives, the threat of identity theft remains persistent. Fraudsters are upping their game to pry into your sensitive information for illegal transactions and financial scams.
Now, more than ever, it’s essential to consider investing in a robust identity protection service that goes the extra mile in safeguarding your digital data. Here’s a deeper look into identity theft, the various types, and how to prevent it.
Understanding Identity Theft
Have you ever noticed an unfamiliar notification about money debited from your account? Received a suspicious call about credit card debt that you heard about for the first time? Or have you checked your credit score as usual, but only to see that it’s too low?
These are some examples of identity theft, a crime that involves using the victim’s personal information for fraudulent financial activities. Fraudsters access this information from data breaches, physical device theft, malware attacks, and phishing scams. Typically, criminals aim to steal sensitive personal information, which can include the following:
- Full name
- Address
- Social Security number
- Date of birth
- Credit card number
- Bank account information
- Driver’s license information.
Sadly, identity theft is widespread, so it’s imperative to be highly vigilant about your financial data today, whether it’s a credit card profile or a new bank account.
Types of Identity Theft
Various types of identity theft exist today, depending on who the target is and the methods used to steal their information. Knowing these is key to protecting yourself and taking the right action to protect your identity.
- Business ID Theft: Someone steals information without authorization to file false business returns or receive tax benefits.
- Medical ID Theft: This occurs when someone uses your health insurance or personal information to get prescriptions, file insurance claims, pay hospital bills, etc.
- Child ID Theft: Even a child’s identity can be subject to theft. They’re easier to steal, as most children don’t know about this until they are adults and apply for a loan, driver’s license, or bank account. Child identity theft happens when someone uses a child’s Social Security number to apply for credit cards or bank accounts, rent properties, apply for loans, pay utility services, etc.
- Tax ID Theft: Someone uses your Social Security number to falsify tax returns on your taxable income. It is a grave concern as it often leads to government trouble even before you can realize what has happened.
- Synthetic ID Theft: This is one of the latest identity theft methods. Cybercriminals create a fake ID using the victim’s real identification details and then use it to apply for loans, open new bank accounts, and commit other forms of financial fraud that can plummet the credit score.
- Other Types: Tax fraud, phone scams, fraudulent wire transfers, and estate identity theft are some of the different types of identity theft.
Preventing Identity Theft
While it’s impossible to entirely prevent identity theft, you can still take key steps to decrease the chances. These include:
- Staying on top of the due dates for your credit card, EMI, and other payments.
- Monitor your email for unfamiliar or suspicious items (such as emails about a service you didn’t opt for).
- Keep your Social Security number secure and only provide it when required.
- Reviewing credit reports regularly, especially from reputed sources like Experian and Equifax, to know your score and detect unusual decrease immediately.
- Shred any paperwork with your financial data or personally identifiable information (PII) after use.
- Read your credit card, health insurance, bank, and other financial paperwork carefully and often to ensure a firm grasp of the applicable charges and claims.
- Invest in a reputable identity theft protection service that monitors your credit profile, tracks credit activity and score, secures your accounts, monitors your PII in various criminal areas (like the dark web), and sends monthly notifications of credit history, payments, and other information.
Signing Off
Evading identity theft completely would mean abandoning modern life and living in the woods. But you can’t and won’t do that, so the next best thing is to follow healthy financial security practices and consider subscribing to an identity theft protection service that monitors your information holistically.
