How to Protect Yourself From Identity Theft

Identity fraud occurs when someone steals and uses your personal information to purchase products or services. They may obtain this information through various means, such as taking mail from your trash, searching for details about you online, or contacting you directly while impersonating a legitimate organization. You can take numerous steps, offline and online, to safeguard your personal information. Here are a few suggestions.

Check Your Credit Report for Any Updates

Understanding your credit report is crucial in combating identity theft. Access a free weekly credit report at annualcreditreport.com. Your report may update often, based on your accounts and credit activity. Watch for any unusual accounts or information. If uncertain about an account or creditor, contact them directly for clarification.

Some creditor details may differ from your expectations. For instance, a retail store card might show the partner bank’s name on your report, which can be initially confusing. If you have questions about an account, contact the lender using the information in your credit report’s account details section.

Monitoring Your Identity Using a Service

Compromised and stolen information frequently ends up on dark web marketplaces, where cybercriminals purchase it to commit further crimes. It was challenging to determine if your data was involved in these marketplaces in the past, but now an identity monitoring service can handle this for you.

MRZ scanning tracks the web for personal details, including email, credit card, government IDs, and bank account information. It provides early alerts to help secure your personal info, notifying you if your data is detected on the dark web, on average, 10 months earlier than similar services.

Enable Two-factor Authentication

This method is increasingly standard for many accounts, especially in financial institutions and social media platforms. Two-factor authentication involves verifying your identity through a linked phone number, followed by the company sending a unique, one-time password to ensure user authenticity.

Two-factor authentication is often optional, so you must enable this feature for identity protection. While it may add a few seconds to the login process, it saves significant time compared to recovering accounts or reclaiming your identity.

Freeze Your Credit

Freezing your credit significantly hinders criminals from taking out loans or opening accounts in your name, as it blocks all credit inquiries, including legitimate ones. This offers stronger protection compared to a fraud alert.

If you plan to apply for a loan or a new credit card, you’ll need to take additional steps to proceed while the freeze is active, with guidance available from the involved organization. Unlike a fraud alert, you must contact each major credit reporting agency individually to initiate a freeze. The freeze remains until you remove it, requiring contacting each agency.

Check Your Accounts Consistently

Regularly check your credit reports and other personal accounts. Once identity thieves obtain your personal information, they retain it indefinitely. They can keep committing fraud in your name and devise new methods to exploit your details. The effects can appear years after the initial theft. Given the ongoing vigilance needed for protection, opting for an identity theft monitoring service might be a safer and more convenient choice.

Endnote

It’s impractical to assume you can completely prevent identity theft. With the rise in data breaches, criminals can access your personal information without any fault on your part. Identity theft protection services continuously monitor your most sensitive details, including your identity and financial accounts.