According to the Federal Trade Commission (FTC) consumers in the United States lost more than 5.8 billion dollars to fraud in 2021. That is an increase of more than 70 percent over the previous year. The most common type of scams were imposter scams followed by online shopping scams.
Identity theft happens when someone steals another person’s personal data which can include name, phone numbers, address, birthday, Social Security number, bank account numbers, credit card numbers, driver’s license information, account numbers and passwords and medical information.
They use that information to assume the person’s identity and steal from them.
Phishing, smishing and vishing scams, data breaches, Man-in-the-Middle attacks, credit & debit card theft, mailbox and trash theft, ATM skimming and wallet and purse theft are just a few examples of how criminals steal information. They can also get this information directly from you by what you post online. Criminals scan social media websites and use what you post along with other information they may already have to build a detailed profile on you. See my articles on Why you should never take Facebook quizzes & surveys and Why you should not post children’s pictures on social media
Be extremely cautious sharing information online.
Identity theft can go unnoticed for months and recovering from identity theft can be a long and expensive process.
Signs of Identity Theft
Invoices and statements for items you did not purchase.
Unexplained credit card charges.
You receive documents in the mail for loans you did not apply for.
Unfamiliar transactions on your bank statement or bounced checks.
Unfamiliar medical bills or errors in your medical records.
Credit cards arrive in the mail that you did not apply for.
Collection agency calls and letters for debt you don’t recognize.
You are denied credit or notice errors on your credit report or a drop in your credit score.
Missing mail due to mailbox theft or because a criminal has changed the address where your mail is delivered.
Missing email due to your email account being compromised.
Errors on your tax return or Social Security statement.
Authentication requests for email and other accounts you don’t recognize.
You are locked out of online accounts, signaling a criminal has taken over your accounts.
Your information has been part of a data breach.
A warrant for your arrest has been issued because a criminal who has stolen your identity has committed a crime. They can obtain a fake driver’s license or other forms of identification in your name.
How to Protect Yourself
Register for Online Access with the Social Security Administration
Setting up online access to your Social Security account offers many benefits and prevents cybercriminals from opening an account in your name. It is easy to do online.
Go to https://www.ssa.gov/myaccount/create.html
You will be asked a series of questions that only you should know the answers to.
You will select a username and password and verify your account by entering a security code that they send to you.
If you have a credit freeze or fraud alert on your credit reports, you will be required to temporarily lift those to create your account. Once your Social Security account has been successfully created you can secure your credit accounts again.
If you don’t want to provide this information online, you can visit your local Social Security office in person, and they will assist you in setting up your account.
Registering for an account prevents someone else from setting up an account in your name. If you have been part of a data breach and your name, Social Security number and other personal information has been stolen a scammer can use that information to impersonate you.
Benefits of Setting up your Social Security Account
Access to current and past statements.
Estimate your monthly benefits if you claim them early or at the full retirement age.
Update your contact information such as your address and phone number.
Verify your lifetime earnings.
Check for any errors in your statement and take the steps to correct any mistakes that are found.
Setup direct deposits.
Check the status of a pending claim.
Request a verification letter as proof of income.
Request replacement tax forms.
In the past Social Security mailed you a copy of your statement annually a few months before your birthday. They no longer do that. Now they only mail statements to workers aged 60 and older who do not have a “My Social Security Account”
You can file a request to have your statement mailed to you. Go to Social Security Forms and fill out form SSA-7004. https://www.ssa.gov/forms/
If you suspect you have been a victim of fraud, go to the Federal Trade Commission’s Identity theft website and file a report. https://www.identitytheft.gov/#/
Also file a report with the Social Security Administration Office of the Inspector General. https://oig.ssa.gov/report/
Additionally, notify your bank, credit union and credit card companies that you may have been a victim of identity theft.
Points to Remember
Social Security will never ask you to verify your identity by giving them your Social Security number over the phone or in a text message.
They will never ask for your bank or credit card information.
They will never ask you to send them money or any type of payment.
Monitor Your Financial Accounts
Sign up for online access to all your financial accounts and monitor those accounts regularly for any unusual activity.
Review your monthly statements.
Setup fraud alerts on your accounts, sign up for email and text transaction alerts.
Prevent Mailbox Theft
According to the United States Postal Inspection Service there were 33,000 reports of incidents involving mail carrier robberies and mail theft in 2021.
Sending or receiving any mail that is confidential or contains financial information can be dangerous. Avoid putting anything in your mailbox that can lead to identity or financial theft. Sign up for online bill pay and electronic statements so that those documents are no longer sent to you in the mail. Have all of your checks directly deposited into your bank account.
Sign up for USPS Informed Delivery. This is a free service through the United States Postal Service that allows you to view greyscale images of the exterior, address side of letter-sized mail pieces and track packages in one convenient location. You can view notifications from any smartphone, tablet, or computer. You can sign up for a daily email that shows you the mail that will be delivered to you that day so you will know if something is missing.
Other steps you can take to keep your mail safe;
Take anything confidential directly to the post office to mail.
If you are sending mail from your home put it in the mailbox as close to pick up time as possible.
Retrieve mail from your mailbox promptly.
If you are going to be away from home for an extended period of time sign up for USPS hold mail service. You can sign up online
If you suspect mail has been stolen from your mailbox, report it to the USPIS on their website uspis.gov/report, or by calling 877-876-2455.
Report any stolen mail to your local police department.
If a check you wrote is stolen report it to your bank. If it was a check sent to you report it to your bank and the institution who issued the check.
Freeze your Credit Reports
If you have not already done so place a security freeze on your credit reports. This can be done online or by calling the three major credit bureaus, Transunion, Equifax and Experian.
Placing a security freeze on your credit reports is one of the best ways to protect yourself against identity and financial theft.
Request a copy of your credit report from the three major credit bureaus and check them for accuracy. If errors are found report them to the agencies. You are entitled to a free copy of your credit report with all three credit bureaus.
Sign up for Credit Karma
and
Both sites offer free credit and financial monitoring tools. You can check your credit score regularly using either site.
Protect your personal data such as bank account numbers, Social Security numbers, debit and credit card numbers and other information. Don’t leave these items laying around where others can access them.
Password protect your phone, computer and other devices.
Add your phone number to the National Do Not Call Registry
Block fraudulent calls and text messages on your mobile phone.
Don’t answer your phone if you do not recognize the number, instead allow the call to go to voice mail.
Keep the operating system on your computers, phones and tablets updated. Also keep the apps and programs installed on these devices updated.
Use antivirus software and a virtual private network (VPN) to safeguard your devices and network.
Lock your valuable documents in a fireproof home safe.
Don’t carry private or financial documents and information in your purse or wallet where they can be easily stolen.
Use a strong, unique password for all the websites you visit. Never use the same password twice and use a password manager to store your login information.
Enable two-factor or multi-factor authentication for all your financial and email accounts.
Don’t click on links that you are unsure of. Be cautious opening attachments.
Place a fraud alert on your accounts with the three major credit bureaus, Transunion, Equifax and Experian.
Shred personal documents and mail before throwing them away.
Make sure no one is looking over your shoulder when using an ATM or making a payment.
Be careful talking on the phone in a public place. Your conversation can be overheard by criminals.
If you order blank checks have them sent to your bank and pick them up in person. Don’t have them delivered to your home mailbox.
Don’t carry your Social Security card in your purse or wallet. Don’t give your Social Security number to anyone, including legitimate businesses.
Be suspicious of any phone calls requesting personal or financial information. Don’t respond to these types of calls, hang up the phone and call the business or financial institution directly using a phone number you know to be true. And don’t trust the caller ID. Criminals can spoof phone numbers to make it look like the call is coming from someone you know or a legitimate business.
If You Have Been the Victim of Identity Theft
Report the fraud to the companies where the fraud occurred.
Report the theft to your State Attorneys General Office.
State Attorneys General Office
Report the theft to the Federal Trade Commission.
Report the theft to your State Consumer Protection Office.
State Consumer Protection Office
Report the theft to Social Security.
Report the theft to the BMV.
File a police report with your local police department.
Contact the creditors and financial institutions you do business with. Let them know that your accounts may have been compromised. They can refer you to their fraud department who can help you take the appropriate steps to secure your accounts.
Change the passwords and security questions on all of your online accounts.
Keep a record of all steps you take to report and document the fraud.
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