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.
Recently I received a letter from a major retailer stating that one of their payment card readers had been compromised and that I had used it for a debit transaction. I contacted my bank and they recommended that when using my debit card at any retailer use it as credit rather than debit so that you don’t have to enter the PIN.
Due to the issue with the card reader at that retailer my account was debited $1900 and my card never left my possession.
As someone who works in a bank, I would also like to warn people about taking this too far. Despite the numerous postings around my branch, more than half the people whom I ask for photo ID refuse to give it to me or demand to know why I need it. Hello?? We are a bank!
Since I know 95% of the people who come to me, I don’t need their IDs but I do ask for those of people I have never seen before. It just boggles my mind when they get upset; we even had one customer snatch his check back and leave, telling us that we were “horrible people” to ask for such a thing.
Not only is it to safeguard the bank in case of check fraud (and there is A LOT of that going on lately) it is also a protection for YOU, THE CUSTOMER. If someone stole your checkbook and wrote a check out to “cash” for 5000 dollars and I DIDN’T ask for their ID, I guarantee you’d come storming in a week or month later blaming me for NOT asking. It’s one thing to be cautious about your ID, it’s quite another to be insane about it.
I had the honor of reading your idea on preventing identity theft and I think I agree with you wholeheartedly. A friend said that i should thoroughly check my credit card and bank statements each for unauthorized or fraudulent activity. Securing sensitive documents and being aware of fraud seems like the best way to avoid identity theft. This really takes the ‘pressure’ off. Wise words Hilary!
As one of the readers who emailed you over the past few days, thank you for this article.
I’m usually so on top of these things, but I got duped by the phone call from “my bank” and gave out too much information. I feel really silly now, but hopefully everything will be ok.
My mother passed away recently and once an obituary goes into the local newspaper and also gets picked up by Google then your mother’s maiden name becomes public knowledge and is linked to your name as “survivor of the deceased”. I contacted various places that use “mother’s maiden name” as a security question and had them add an additional question to that for security.
Credit freeze is also a good idea which just about every state allows you to do. It’s free if you can prove that you’re a ID theft victim, or over 65 (might be 60) otherwise it’s $10 per credit report (per person) I do believe.
Your credit can be unfrozen as well if you notify the bureaus in advance of when you’ll be applying for a loan or credit card.
The credit freeze wouldn’t be a bad idea either for someone who is easily tempted to get store credit cards.
Great article and I love what you write here. It’s such a breath of fresh air. You have covered the bases pretty well. There are so many different methods these thieves use to steal a person’s identity these days. They can easily steal from our computers, mailboxes, and they are getting more sophisticated each year. Best thing is to install a firewall and antivirus software or get an ID theft insurance.
Oh!this is a GREAT one. I need to re-read it about a lot of times. And then read it again because it is really useful. I think the best way to for us prevent identity theft is to always check our credit report regularly to make sure there are no fraudulent credit cards opened in our name. Thank you for breaking it down for us, Hilary!
Usually the people who freak out on you like that are usually up to no good. I’ve worked in retail and the people who are trying to steal will become angry or upset for no reason because they want you to leave them alone, so they can steal.
VERY good advice! A friend of mine recently applied for a credit card and was rejected; he asked for a copy of his credit report (this is a good idea to do if you get rejected for a credit card) and found out that he was victim of identity theft. Somebody had taken out a $300K mortgage in his name and was late on the payments.