How to Prevent Identity Theft

Will our identities ever be safe? Once again, a major data breach is making headlines.1 Ticketmaster is just the latest hack in what seems like a never-ending reality of personal data being stolen – leaving consumers vulnerable to identity theft.

These days, we trust so many companies and websites with our personal information, and identity theft is a constant concern. Here at Beacon Capital Management, we take your privacy and security very seriously, which is why we created a step-by-step guide on what to do if your identity is stolen.

But if you’re not dealing with a stolen identity just yet, there are proactive measures you can take now to protect yourself. Let’s take a look at effective strategies and best practices to prevent identity theft and safeguard your personal information.

Understanding Identity Theft

Understanding how identity theft happens is crucial to preventing it. Identity theft occurs when someone wrongfully obtains and uses another person’s personal information, typically for financial gain. It can happen through various activities like:

    • data breaches
    • phishing scams
    • physical theft of documents

Warning signs of identity theft include unexpected withdrawals or charges on your bank account, unfamiliar accounts or charges on your credit report, receiving bills for services you didn’t use, or being denied credit for no apparent reason. Vigilantly monitoring your financial statements and credit reports for any suspicious activity is essential.

The impact of identity theft can be devastating, causing financial losses, emotional distress, and damage to your reputation. Resolving identity theft often requires considerable time and effort, including disputing fraudulent charges, restoring credit, and repairing your financial standing.

Tips to Protect Your Personal Information

Unfortunately, criminals are always finding new, creative ways to steal personal information. To safeguard your personal information, and make your best efforts to prevent identity theft, consider:

Limiting personal information shared online.

It’s fun to share with friends on Facebook, but be cautious about the personal information you share on social media and other online platforms. Avoid posting your full address, phone number, or other sensitive details publicly. Being intentional about what information you share is key to preventing identity theft.

We’ve seen too many folks innocently share a picture of their passport and boarding pass while traveling overseas, or an excited teenager post their brand-new driver’s license. It can be tempting to highlight these fun milestones, but never give your followers access to the kind of information on those documents.

It’s also a good idea to adjust your privacy settings to control who can access your information, and regularly review and update these settings.

Safeguarding your Social Security number.

Your Social Security number is highly valuable and should be protected. Avoid carrying your Social Security card and never share it over email or phone unless absolutely necessary. Store it securely and only provide it to those you trust.

Secure password management.

Strong passwords are crucial for protecting your online accounts and prevent identity theft. Use a mix of upper and lower case letters, numbers, and special characters. Avoid easily guessable passwords like your birthdate or name. Use unique passwords for each account and regularly update them.

By following these tips you can significantly reduce the risk of identity theft. Prevention is always better than dealing with the aftermath. If you have an elderly loved one, informing them of the dangers and steps to take to prevent identity theft would be doing them a great service. Here is an article to help when caring for aging parents: How to Care for Aging Parents.

Securing Your Financial Data

Protecting your financial data is crucial to preventing identity theft. Implementing key strategies can significantly reduce the risk of falling victim to this crime.

Regularly monitor your credit reports from the three major credit bureaus – Experian, Equifax, and TransUnion – at least once a year. Look for any unrecognized accounts or transactions, as these could be signs of identity theft. Report any discrepancies to the credit bureaus immediately.

Utilize fraud alerts and credit freezes. Fraud alerts notify creditors to verify your identity before extending credit, adding an extra layer of protection against unauthorized accounts. Credit freezes restrict access to your credit reports, making it difficult for identity thieves to open new accounts. Both options provide valuable safeguards.

Recognize and avoid phishing scams. Phishing is a technique used by cybercriminals to trick individuals into revealing sensitive information, such as usernames, passwords, or credit card details. Be cautious of suspicious emails, text messages, or phone calls requesting personal information. Always verify the source before providing any sensitive data, and never click on unfamiliar links or download attachments from unknown senders.

For more top scams targeting retirees, including the terrifying “grandparent scam,” watch our episode of Retirement Talk below:

Protecting Your Personal Documents

If you want to prevent identity theft, you need to protect your personal documents. This can significantly reduce the risk of your sensitive information falling into the wrong hands.

Avoid carrying unnecessary personal documents in your wallet or purse, as losing them could lead to identity theft.

Practice safe storage and disposal of sensitive documents, including bank statements, tax documents, and medical records. Store these documents in a secure location, such as a locked filing cabinet or a safe.

When disposing of them, never throw them in the trash. Instead, shred the documents to ensure the information cannot be easily retrieved.

Here’s why shredding is so key: Identity thieves can piece together torn documents, so you want to shred them into confetti-like pieces, making it nearly impossible to reconstruct the information. Beacon Capital Management actually hosts an annual shred day event for free! Beacon’s Free Shred Day event is held once a year in Franklin, TN, the first Saturday after tax day.

More Ways to Prevent Identity Theft

Protecting your personal information is crucial in today’s digital age. Fortunately, various resources can help you prevent identity theft. Here are some additional things you can do:

Purchase identity theft prevention tools and services

There are plenty of identity theft prevention tools and services that offer robust protection against unauthorized access to your sensitive information. These tools often include credit monitoring, identity theft insurance, and identity restoration services. Here are five options that regularly show up on top-rated lists:

    • LifeLock
    • Norton
    • McAfee
    • Aura
    • Malwarebytes

Stay up-to-date with educational materials and further reading

Educate yourself and your loved ones on identity theft prevention. Staying informed about the latest identity theft statistics and trends can help you understand the evolving tactics used by identity thieves and enable you to take proactive measures. Be sure to subscribe to our free YouTube show, Retirement Talk, where we’ll share the latest threats and scams we are seeing in the financial space, as well as ways to prevent identity theft.

Many trusted organizations and government agencies provide informative brochures, articles, and guides on safeguarding your personal information.

Following this advice can make a big difference in keeping your identity protected and your personal information out of the wrong hands.

 

Free online resources to aid you in your efforts to prevent identity theft:

  1. Federal Trade Commission (FTC)
    • IdentityTheft.gov: The FTC’s comprehensive resource for identity theft prevention, reporting, and recovery.
    • FTC Consumer Information: Offers tips and advice on protecting personal information and privacy.
  2. Identity Theft Resource Center (ITRC)
    • IDTheftCenter.org: Provides a wealth of information on preventing and responding to identity theft, including a free assistance hotline.
  3. National Cyber Security Alliance (NCSA)
    • StaySafeOnline.org: Offers advice and resources to protect your personal information online.
  4. US Department of Justice
    • Justice.gov: Identity Theft: Provides information on identity theft and fraud, including prevention tips and steps to take if you’re a victim.
  5. Consumer Financial Protection Bureau (CFPB)
  6. Social Security Administration (SSA)
  7. AARP Fraud Watch Network
  8. Better Business Bureau (BBB)
    • BBB Scam Tracker: A tool to report and learn about scams in your area, including identity theft.
  9. OnGuardOnline.gov
    • OnGuardOnline.gov: Managed by the Federal Trade Commission (FTC), this site provides practical tips from the federal government and the technology industry to help you guard against internet fraud, secure your computers, and protect your privacy.

These resources offer a variety of tools, tips, and assistance to help you or your loved ones prevent identity theft and recover if you become a victim.