148 million people (including me!) had their information stolen when Equifax, a major credit bureau that collects all your most sensitive and personal information (everything thieves would need to impersonate you), got hacked. But this wasn’t the first big hack, nor will it be the last.
Imagine that you’re working hard to save up for that car or house you’ve always wanted, or that business loan you so desperately need to take your business to the next level. Out of nowhere you start getting loan statements in the mail from banks you don’t have accounts at. It only gets worse as you are notified of purchases you haven’t made for various, expensive items. Or maybe you don’t get any notices and you only realize years later when you apply for that loan; your credit has gone from 800 to 100. What’s going on??
The concept of identity theft was once a far-fetched idea, but now has become a super-common crime. Over 8 million Americans became victims of identity theft last year alone, a crime amounting to over $45 billion.
Criminals are able to pretend to be you and make financial transactions (like opening credit cards, taking out loans, buying cars, etc.) using your identity and social security number. Criminals can get your info any of a number of ways, like hacking, spyware, or simply mailing in any of the pre-approved credit card offers sent to you unsolicited (more on that — see tip #3).
Think you can just get a credit monitoring and “protection” service to protect you? Think again. Those services charge a small fortune for what you can get for free, and they don’t prevent identity theft — they just let you know there’s a problem after the fact. #useless
There are ways to protect yourself from identity theft and prevent something like this from happening to you. The steps are surprisingly easy and better than the alternative of spending months dealing with the banks and credit bureaus to untangle your credit and debt issues. Read on:
1. Don’t show your signature!
It’s really important that a copy of your signature doesn’t get into the hands of identity thieves since a lot of credit card companies, banks, etc. use your signature as proof that it was you opening the account or placing the transaction.
- Instead of signing the back of your credit cards, put in there “PHOTO ID REQUIRED”. This makes sure the credit card company will have to refund you if your credit card is stolen and used, since if the criminal forges your signature and it looks similar to your real signature, the credit card company will hold you responsible for the charges. #sneaky!
- Always sign paper reciepts for packages and purchases using your initials (unless it’s a digital screen where the clerk can’t see your signature). There’s no good reason to use your real signature unless you’re signing a contract or official documents. The less service people (waiters, delivery people, etc.) see your real signature, the better.
2. Put a freeze on your account. This is the most important step — by far. Having a credit freeze on your Social Security Number means that you’ll have to fill out a form (or make a phone call) and pay $5 to temporarily lift the freeze if you want to apply for a loan, cell phone, mortgage, etc. but it’s soooo worth it, since a freeze on your account means that identity thieves won’t be able to open any accounts or take out any loans in your name while the freeze is in place. Make sure to initiate a long-term freeze at all four credit agencies — here are links to instructions for each credit bureau:
- Experian
- Equifax
- Transunion
- Innovis
Keep in mind that the credit bureaus are super sleazy, and they’d rather you sign up and pay for their credit monitoring services, and then pay them again to help you clean up the mess when your credit is stolen. Don’t let them sell you on this crap. All you need is a freeze on your credit account. That’s it.
3. Tell the credit agencies not to share your info. They (unethically) make money by selling your info and credit report to companies who then send you solicitations for things like pre-approved credit cards. Criminals know how to tell when a pre-approved credit card offer is in the mail and grab it, sending it in accepting the offer and adding a change of address. Next thing they’re racking up charges (and putting you more and more in debt) for years behind your back and you have no idea, since you’re not getting the statements.
4. Make sure you have a copy of all the important contents of your wallet. Have the contents of your wallet photocopied or photographed on both sides — license, credit card, etc. Keep the photos in a safe but easily accessible place, like Google Drive or your locked filing cabinet at home. This way, you will know what you had in your wallet and all of the account numbers and phone numbers to call and notify.
5. When you lose your credit cards, cancel them immediately. As I just mentioned, a list of your various cards should be kept in a safe place (like in Sync.com, so you can access them from anywhere), including the card number and toll-free numbers displayed on the back of the card. If you lose your wallet or can’t find a card, pull up that file and call the card company to let them know your card was lost or stolen. Make calendar reminders to follow up with the credit card companies because, although they’re legally obligated, they often need several reminders before they credit you back funds from fraudulent purchases.
6. If your card is stolen, notify the authorities.
- File a police report immediately in the jurisdiction where they were stolen. This proves to credit providers you were diligent — and this is a first step toward an investigation should there be one.
- Also, call the four national credit reporting organizations immediately to place a fraud alert under your name and also call the Social Insurance fraud line number (see below). This will alert any company that checks your credit and they will have to contact you by phone to authorize new credit.
- Notify the FTC. This is only necessary if you think your identity has in fact been stolen. For credit card fraud, in which only a single account was compromised, an FTC report isn’t warranted. To file a report, you can visit the government website FTCComplaintAssistant.gov or call 1-877-ID-THEFT (438-4338).
7. Check your statements monthly. Go through each credit card and bank statement with a fine-tooth-comb. Make sure you recognize each and every transaction. If you don’t, then call the credit card company to get more info or to dispute the charge.
8. Check your credit yearly. Oh yeah, and you don’t have to pay for your credit report. The government mandates that, by law, you’re entitled to at least one free credit report from each agency each year (but the credit unions still try to trick you into paying anyhow). While plenty of websites and creditors promise free credit reports (then turn around and sell your information increasing your chances of identity theft, or sneakily sign you up to other services you don’t want), the official site to request them is AnnualCreditReport.com or by calling 877-322-8228.
…and a few more bonus tips:
- Create strong passwords and regularly change them, and enable “two-factor authentication” wherever possible (this means you’ll get a text message with a code that will let you login — but only for the first time you access that website on a new device).
- Shred receipts, credit offers, account statements, and expired credit cards, to prevent “dumpster divers” from getting your personal information.
- Keep personal information such as your address and phone number off social media sites, as well as any details you use for online security questions (like your mother’s maiden name).
- Do not carry your Social Security card in your wallet. Keep it in a locked safe at home.
- To prevent getting spyware installed on your computer don’t click unknown links in emails.
- Collect your mail promptly. Place a hold on your mail when you are away from home for several days.
- Want more? Here are some tips from the US Government.
Remember the numbers to call when your credit cards and SS card are lost/stolen:
Equifax: USA 888-766-0008 & Canada 800-465-7166
Experian (formerly TRW): 888-397-3742
Transunion: 800-680 7289
Innovis: 800-540-2505
Social Insurance (fraud line): USA 800-269-0271 & Canada 800-206-7218
The FTC: 877-ID-THEFT (877-438-4338)
Need another number? Try GetHuman.com to find a number that connects you to an actual human being.
This is really good advice. I remember one time when I got an email saying it was from Ebay and I needed to update my account information or the account will be frozen. I did not realize what a mistake I made until after I entered my information and hit the enter key. I was definitely scared out of my mind when I tried to use the link again, so I could send the info to Ebay, and all I got was an error page. Luckily nothing happened but now I pay close attention to what I click on in a email.
When I was in Italy last summer I actually witnessed a young boy attempting to take the wallet out ot the back pocket of an unaware tourist. The tourist was talking on his cell phone, and had no idea of what was happening. I yelled, and the child went scooting off. I noticed the pickpocket’s friend over near a building laughing at the whole scene… Who knows what they would have done with the poor guy’s ID!
Identity theft protection services can help us monitor our accounts. They can place fraud alerts and freezes on a users credit reports. Many people find it valuable and convenient to pay a company to keep track of their accounts and credit reports. I just love you to bits and enjoy everything that I have read so far. You have certainly had a lovely impact on my life and I thank you!
Very useful suggestions! The mail transports millions of pieces of personal information every day and is one of the most common sites for identity theft activity. A study found that the most frequently used non-technological method for identity theft was the rerouting of mail through change of address cards! So pay attention to your mail.
It’s important to have a bank that’s proactive about your account. Mine calls me, an annoying amount, if anything looks remotely suspicious. I’ve had my ‘account compromised’ and also my ebay hacked into. Both times customer service took care of it before I suffered any real consequences.
I personally am *glad* when my bank makes reasonable checks like showing and ID, asking for info from my account, etc. when I am withdrawing/transferring money. When one of those irate customers complain, try to remember that there are more of us who “get it” and prefer occasional inconvenience over finding an empty bank account.
Thanks for all the info and tips. Very helpful! This is a timely post I just had my amex account hijacked – with a counterfeit card!
The problem is not so much that it’s not difficult to obtain someone’s SSN. The problem is that so many agencies or businesses treat your SSN as if it was proof of ID. Someone signed up for phone service using only my friend’s name and SSN.
When she disputed the bill, she had to actually *prove* that it wasn’t her who signed up. Since she was living 120 miles away this wasn’t so hard yet it still took three years to completely clean up the mess..
The problem seems to be that the businesses who accept SSN as verification of identity are not the ones held responsible. Instead it’s the person who’s identity was stolen who has to clean up the mess.
Yes, in this country the SSN is a very big issue. It is one of the main access points for identity theft, which is a huge problem here.
I have to agree with you about how places ask for your SSN when they don’t need to. I work at a school and even though the student records database has a spot for SSN we never use it.
My house was broken into last year and they trashed the whole house. I wasn’t sure what exactly was stolen but i immediately got the service from one of the credit companies to give me constant update on my credit report.
they text or email with the slightest change, and it worked so well I am most likely gonna renew it. Its about $100 a year, which to me isn’t bad. If you know your identity was stolen I highly suggest it.
Amazing article! Very useful tips to prevent identity thief .Thief’s are very clever they find any way to do scam but precautions are very necessary. Everyone should aware about security information. Thanks for sharing tips.
When I was looking for an apartment, they always made me provide them with my social security number, bank account numbers, driver’s license number, and other personal information. I didn’t have a choice. If I hadn’t given them the information, I wouldn’t have gotten to live in an apartment! I now live in a gorgeous two-bedroom apartment, but wonder what happened to all this sensitive info that is on all the forms I filled out during my search for a home!