What Is Identity Theft (And What You Can Do About It)

Whether identity theft has happened to you, someone you know, or you want to avoid the risk it is important to know how to protect yourself.

What do you consider your identity? Is it your name, birthdate, place of residence, job, driver’s license, medical information, or social security number? Imagine all of those items being used, fraudulently by another person, to deliberately gain funds, credit or purchases, online gifts, and more. Follow along, as we explore the secret world of identity theft. Learn what makes someone a target and how to take action if your private information is compromised!

What Is Identity Theft & Who Is At Risk

Identity theft is both the attempt of an unauthorized party to use your personal accounts and information, and the successful misuse. Identity theft is widespread. It happens often, to the tune of billions of dollars stolen per year. In the United States alone, upward of 17 million people were victims of identity theft in 2015 alone (according to the Bureau of Justice Statistics .gov statistic, found HERE: https://www.bjs.gov/content/pub/press/vit14pr.cfm. Though the most common type of identity theft is unauthorized credit use, there are many surprising ways criminals misuse your private information and fraudulently steal funds or goods.

Financial Identity Theft: This might be in the form of actual in store credit card purchases, but is more commonly online purchases or even money taken from bank accounts.

Example: Customer receives a phone call from a representative at their bank. The representative explains they are calling about suspicious activity. This is the first they hear of the fraud and do not know the person who committed the crime.

Social Security Theft: Considered the most common type of identity theft, SSN’s can be used to apply for credit cards, sold to those wanting a fake identity, or used to create fake accounts or documents. This can sometimes lead to tax theft, where aa criminal files a fake tax return to gain funds.

Example: You apply for a credit card only to find your request declined as someone has stolen your social security number and set up multiple fake accounts, ruining your credit score. OR: You complete your taxes and have your refund denied, as another party filed your taxes fraudulently.

Driver’s License/ Criminal Identity Theft: Criminal identity theft is when someone commits a crime and impersonates you. f you’ve ever lost your driver’s license, there is a chance that your license has been sold and/or compromised. Believe it or not, criminals sell driver’s licenses to those who want to conceal their own identity. They might use this to open accounts or even if they are pulled over for a serious driving infraction, etc. Either way, this might give you a record you didn’t earn.

Example: You receive notice that your driver’s license has been suspended for a driving error or a DUI, but have never been pulled over or received a ticket. Turns out someone criminally purchased your license and has been using it whenever they receive a driving ticket.

Medical/Insurance Identity Theft: This is when medical and insurance information is stolen, to acquire medical equipment or services. This could impact your own ability to adequately get services or care when you need it.

Example: You go to the pharmacy to pick up your prescription, but find someone else ordered it and retrieved it from another store location in the same chain.

*** All or most of the above may be combined to create a no-win situation for the person whose information has been stolen. The merger of these frauds may lead to synthetic identity theft, where credentials like name, address, birthdate, social security information, driver’s license and more are combined to create an entirely fake identity. This is the most dangerous combination, as it leads to loss of funds, shock and frustration, and pursuit from lenders of credit and even law enforcement.

How To Prevent Identity Theft

1. Shred all documents with secure information.
2. Never provide private details to anyone who calls you on the phone.
3. Beware of phished emails, which ask for private information but link you to a different web address than the email claims.
4. Keep your credit cards safe and secure.
5. Avoid using shared computers.
6. Use complex, hard to guess (or hack) passwords.
7. Change those passwords frequently.
8. Review financial statements (bank and credit, etc.) monthly, or receive text or online alerts of purchase or account details.
9. Sign up for free credit score monitoring.
10. Never trust someone you know through the internet. Think you might be corresponding with a scammer or catfish? Verify their identity through Social Catfish.
11. Do not carry your Social Security card with you. Only take it with you as needed.
12. Review the websites you use for authenticity, before making an online purchase.

What To Do If Your Identity Has Been Stolen:

1. Immediately contact any financial institution directly. They will review any fraudulent purchases with you and work at getting your funds or credit returned. They will also cancel the stolen account numbers and create new accounts or credit card numbers.
2. Fraud Alert: Ask creditors and lenders to set up a 90 day fraud alert through credit score reporters. If the fraud is ongoing, they may agree to an extended freeze (depending on the state you live, as some states allow this while others don’t- be aware that there may also be fees associated with this). This means that you will receive free credit reports, which will allow you to monitor any credit changes or misuse. Links to fraud divisions can be found HERE: Experian ( https://www.experian.com/fraud/center.html), Equifax ( http://www.equifax.com/answers/set-fraud-alerts/en_cp), TransUnion ( http://www.transunion.com/personal-credit/credit-disputes/fraud-alerts.page).
3. Contact The Authorities: Although they may or not be helpful if it was only an online crime, contact Law Enforcement and ask to file a police report. If you do not ask to file an actual report, they may simply take notes. Request a copy of the report once it is available and provide that to credit agencies upon request.
4. Get Help From The Government: The Social Security Administration (SSA) (800-269-0271) and the Internal Revenue Service (IRS) (800-829-0433) should be one of your first contacts. Inform them that you have been the victim of identity theft and see what they suggest. Also, contact the Post Office if there is a chance that your address has been fraudulently changed.

Although identity theft is upsetting to anyone and takes time to correct, following all of the tips above will help you minimize the problem and prevent it in future.