Twenty years ago, identity fraud was primarily conducted through forgery, mail theft and stolen documents. Today, fraudsters intent on identity theft are still at large—but their methods have radically changed. Here’s what identity theft looks like in the digital age and how you can protect your assets.
The Evolution of Identity Theft
Identity theft refers occurs when someone steals your personal information and uses it to impersonate you. Valuable information for fraudsters can include everything from your name, address and birthday; to your social security number; to usernames and passwords; to credit card or bank account numbers.
With so much communication and commerce now taking place online, fraudsters have more opportunities to steal your information, and more opportunities to use it. In this context, it’s more important than ever before to understand how identity scammers work and take steps to avoid identity theft.
Types of Identity Theft
Nowadays, the most common kinds of identity theft include:
- Financial Identity Theft: When someone steals your financial information, such as a debit or credit card number, and uses this to make unauthorized purchases.
- Social Security Identity Theft: Your social security number can be used to apply for credit in your name, open bank accounts or even apply for a job.
- Tax Identity Theft: A scammer might use your personal information to file for your tax refund or report income which isn’t yours, increasing your tax burden.
- Medical Identity Theft: Someone could use your personal information or medical records to get medical care, file false insurance claims or access prescription drugs
- Phishing: Phishing refers to the more general practice of cybercriminals who try to trick people into sharing data by impersonating a legitimate actor or organization.
Protecting Your Identity
If you can avoid identity theft, you can avoid some of the most common online scams. Here are a few tips to keep in mind:
- Use Strong Passwords: One of the simplest and most important steps in protecting your personal information online is to use a unique, strong password for every account. Using a password manager can help!
- Update Software: Regularly update your operating system and web browser, and especially your antivirus program, to reduce the risk of cyberattacks.
- Don’t Click Unknown Links: If you receive an email, text or social media message from an unknown sender, be very wary about clicking a link or initiating a download. You could inadvertently install information-stealing malware on your device.
- Know How to Freeze Your Credit: If you suspect someone is opening fraudulent accounts in your name, you can freeze your credit by contacting the three major credit reporting agencies.
- Be Wary When Sending Money: Payment apps like Venmo or Cash App are popular platforms for scammers. Be wary of unexpected payment requests, including requests which appear to come from your bank or a loved one.
- Don’t Share Personal Information: It’s good practice to avoid sharing any personal information—including details like your birthday and address—with unknown callers or emailers. Instead, end the communication and get in touch directly with the organization who claims to be contacting you.
- Review Financial Reports Often: By paying close attention to your bills, account statements and credit report, you’ll be able to spot and stop identity fraud more quickly.
Final Thoughts
Scammers often prey on fear in order to make their victims act fast, without thinking it through. Remember: if someone is making you feel panicked, or saying you need to send money or share information immediately, it might be a scam. End the communication and take some time to slowly and carefully evaluate the situation.
If you are the victim of identity theft or another type of fraud, report it to the Federal Trade Commission and consider sharing your story with friends and family. Scams can happen to anyone, and the more we talk openly about the scams we’ve experienced or even just read about, the better chance we have of stopping similar scams in the future.
For more information on identity theft visit the Federal Trade Commission online.