Identity theft is a burgeoning concern in our increasingly digital world. It occurs when someone steals your personal information to commit fraud, such as opening bank accounts, making unauthorized purchases, or even accessing sensitive data. Understanding how to protect yourself is essential to safeguarding your personal and financial well-being.
Identity theft is not just a minor issue; it is a rapidly growing crime. According to recent statistics, approximately 33% of Americans have been victims of identity theft, a rate more than double the global average. The Federal Trade Commission (FTC) reported 1.4 million identity theft cases out of 5.7 million total fraud and identity theft reports in 2023, highlighting the severity of this problem.
There are several types of identity theft, including traditional identity theft, synthetic identity theft, digital identity theft, and biometric identity theft. Each type poses unique challenges and requires different preventive measures. For instance, synthetic identity theft combines real and fake information to create a new, fraudulent identity, often going undetected for longer periods.
The financial impact of identity theft is significant, with total cybercrime losses estimated at $10.2 billion in 2023. The median loss to fraud victims is around $500, and the average cost of a data breach has reached an all-time high of $4.45 million.
In this increasingly sophisticated landscape, where AI and deepfake technology are being leveraged by cybercriminals, it is more important than ever to be vigilant. Using tools such as antivirus protection software, password managers, identity theft protection services, and VPNs can help protect your personal information and reduce the risk of falling victim to identity theft.
By understanding the nature and scope of identity theft, you can take the necessary steps to safeguard your personal and financial information in this digital age.
Contents
What Is Identity Theft?
Identity theft involves the unauthorized use of someone’s personal information, such as Social Security numbers, credit card details, or bank account information, for fraudulent purposes. This can include using someone’s name, Social Security number, credit card number, or other identifying information without their permission.
Types of Identity Theft
- Financial Identity Theft: This involves unauthorized access to existing financial accounts or the creation of new accounts in the victim’s name.
- Medical Identity Theft: This involves using another person’s identity to obtain medical care, buy prescription drugs, or submit insurance claims.
- Child Identity Theft: This involves using a child’s personal information for various forms of personal gain, often going undetected for years.
- Tax Identity Theft: This involves using someone’s Social Security number to file a false tax return and claim a refund.
- Synthetic Identity Theft: This involves combining real and fake information to create a new identity for fraudulent purposes.
Consequences and Prevention
Identity theft can lead to significant financial losses and damage to the victim’s credit score. It can also impact the victim’s ability to secure loans or employment and cause emotional stress. To prevent identity theft, it is crucial to monitor credit reports, use secure online practices, and be cautious with personal information. If identity theft occurs, victims should report it to the Federal Trade Commission (FTC) at IdentityTheft.gov and take steps to secure their credit reports and close any fraudulent accounts.
For more details on securing your bank accounts, check out our blog post on 7 Easy Ways to Protect Your Online Banking.
The fight against identity theft begins with proactive personal cybersecurity measures. By setting up alerts on banking and credit cards, individuals can detect fraudulent activity in real-time, significantly reducing the potential for financial harm. This immediate awareness is crucial in a landscape where cyber threats are constantly evolving.
– Kurt Sanger Cybersecurity Expert
Identity Theft Statistics to Consider in 2024
- Experts believe that these cases occur so often that there is a new victim every 22 seconds. Most studies indicate that this ratio will increase in 2024, making it a bigger issue for Americans.
- Nearly 33% of Americans have faced some form of identity theft at some point in their lives, a number that could increase significantly this year.
- Consumers aged 30-39 were the most victimized by identity theft.
- Georgia ranked #1 for identity theft and fraud cases per capita, followed closely by Maryland and Delaware.
Benefits of Preventing Identity Theft
Taking proactive steps to prevent identity theft offers numerous benefits:
- Protect Your Finances: Safeguard your bank accounts and credit cards from unauthorized transactions. Identity theft protection services can alert you to unauthorized transactions, allowing for quick responses to prevent further fraud. Regular monitoring of bank and credit billing statements is crucial for timely detection.
- Maintain Credit Health: Avoid damage to your credit score, which can affect loan approvals and interest rates. Identity theft can lead to fraudsters opening new credit accounts in your name. Credit monitoring alerts you to new entries on your credit reports, enabling immediate action to protect your credit health.
- Save Time and Stress: Prevent the lengthy process of resolving fraud issues and restoring your identity. Identity theft protection services often include assistance from specialists and insurance that can offset legal fees and other expenses, significantly reducing the time and stress involved in recovery.
- Peace of Mind: Enjoy confidence knowing your personal information is secure. Continuous monitoring and alerts from identity theft protection services ensure you are informed about any suspicious activity related to your personal information, providing significant peace of mind.
Understanding these benefits highlights the importance of implementing protective measures today.
Sign Up for Alerts on Banking & Credit Cards to Know When They Are Being Used and When Fraud is Detected
If you sign up for banking alerts via text message or push notifications, you’ll know right away when your credit cards have fraudulent charges, so you won’t be responsible for them. Alerts will also help protect you against bank account takeover problems by catching these threats before they can harm you.
- Benefit: You can track transactions in real-time and get notifications immediately any time an action is taken on your account. If a transaction comes through that you don’t recognize, call your bank immediately.
- Time it takes to complete: 30 seconds per account. If you already have your bank’s app, find the settings and set alerts. Then choose how you want to receive notifications.
For more details on securing your bank accounts, check out our blog post on 7 Easy Ways to Protect Your Online Banking.
Sign Up for an Identity Protection Monitoring Service
An identity protection monitoring service helps you take the guesswork out of monitoring all the places your personal information is used. These services monitor your personally identifiable information in credit applications, public records, websites, and other locations to detect any unusual activity that could indicate identity theft. They often include credit monitoring, identity monitoring, and additional features like dark web and social media monitoring. By signing up for such a service, you can receive alerts and assistance in case of identity theft, helping you to take proactive steps in protecting your identity.
Key Benefits of Identity Protection
Credit Monitoring
Regular tracking of your credit history and periodic credit scores to keep you informed of any changes.
Identity Monitoring
Continuous monitoring of public records, websites, and other places for unusual activity related to your personal information.
Fraud Resolution and Insurance
Get assistance in correcting problems if identity theft occurs, along with insurance coverage for certain out-of-pocket losses.
Additional Features
Enjoy dark web monitoring, social media monitoring, and phone takeover monitoring for comprehensive protection.
Why It’s Important
Given the rise in identity theft and cyber threats, using an identity protection monitoring service is crucial. These services have been shown to help consumers detect and recover from identity theft more effectively, with high customer satisfaction rates.
Consider a Bundled Cybersecurity Solution (like Aura or Total Digital Security) for Strong Passwords, Antivirus, VPN, and More
With a bundled cybersecurity solution, you’ll be able to protect data like SSN and birthdates on your accounts and machines, which typically have less protection from theft than corporate databases. You’ll know you’re doing everything you can on your end to keep this data from being used by others to secure employment, credit, or benefits in your name.
- Benefit: Monitoring your account passwords simultaneously as your accounts mean you have a better chance of catching problems early. When there’s a breach, you’ll be able to change passwords before they’re used on your accounts. You need these services anyway, so it makes sense to bundle.
- Time it takes to complete: 40 minutes to input your accounts, set up desired notifications, and get acquainted with the VPN and antivirus protection.
Aura offers monitoring of accounts but also personal data on many sites. You can scan through data brokers like Spokeo for your SSN alongside the dark web sellers, so you’ll know there’s a problem before your data is sold. You can monitor financial accounts and new account activity within the last 30 days. You can also download antivirus software for Mac, PC, iOS, and Android devices. There’s a password vault and a VPN to protect privacy. You get notifications via email, with text notifications coming soon.
Total Digital Security is a little different. It doesn’t offer financial account monitoring. Instead, it protects home computers from breaches, with a digital vault and data loss protection. It’s ideal for remote workers who need personal device security rather than outside account monitoring.
Get an Identity Protection PIN (IP PIN) from the IRS
By obtaining an Identity Protection PIN (IP PIN) from the IRS, only you can file a tax return under your Social Security number. This six-digit pin adds an extra layer of security, ensuring your identity is safe for federal tax filings.
To get an IP PIN, you need to verify your identity online through the IRS IP PIN system. This involves signing in to your account and receiving a confirmation code via email. Once verified, you will receive your IP PIN online, and a new one will be sent to you by mail each year in late December or early January.
It is crucial to note that you must use this IP PIN to confirm your identity on all federal tax returns you file in the current and subsequent tax years. Failure to include the correct IP PIN will result in the IRS rejecting your tax return.
This additional security measure ensures that only the legitimate taxpayer can file a tax return under their Social Security number.
It’s Possible to Prevent Identity Theft
While identity theft is common, it can be prevented by taking a few extra steps, taking precautions, and implementing a few software tools. Take the first steps in preventing identity theft today by shopping for top-rated cybersecurity tools on the Batten Marketplace.
