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 a very important article that everybody should read. Good pointers on identity theft. It’s pretty scary how much you have to keep tabs on these days.
I used to work in a fraud victim’s division at a bank, so I’ve seen first hand the nightmare identity theft can present. You’ve provided some excellent ideas to prevent identity theft.
Another tip – Add the toll free numbers on the back of your credit cards to your cell phone directory. If your cards are stolen but phone is not you have immediate access to the numbers to call and cancel the cards.
Very good advice, Hilary. I agree on all counts. It is surprising how often phishing scams work – I see it all the time at my bank (they seem to especially target seniors). Banks WILL NOT solicit you and ask for account and other personal information over the phone or online. YOU (the account owner) should initiate any contact about refinancing, credit, or anything bank account related – not the other way around.
Thanks for this! I’ve been looking for this information!
Thank you so much for this article. What an eye opener and love your perspective. Another best tip is to limit the amount of personal information you share on Facebook. A lot of people don’t realize how much of their data is public. Identity thieves are looking on these sites to piece together what they need to steal on our identity.
Great tips, it should come handy especially during tax time – don’t want to leave all those financial folders with important account numbers and contact details lying around!! BOOKMARKED!
As a nation we need greater safeguards on Social Security numbers. The number was never intended to be a universal ID number; yet it has grown to be that.
Doctors’ offices, school registrars, and the like often ask for your Social Security number on their registration forms. Don’t fill it in. Usually they won’t even ask you after you’ve left that space blank. Almost always they won’t hassle you if you then explain that your SS number is private and you don’t wish to give it out. If pressed, make the person at the desk give you a comprehensive explanation of why the SSN is needed.
The feds have done us a disservice by tying the Medicare number to the SSN. If this bothers you, on your own behalf or that of your aging parents, contact your congressperson to ask what legislation is under way to have this practice discontinued.
Please note that while it is important to protect yourself from “outside” identity thieves, according to the Better Business Bureau, “Almost half (47 percent) of all identity theft is perpetrated by friends, neighbors, in-home employees, family members or relatives – someone known – when the victim can identify the perpetrator of data compromise.”
So what can you do to protect yourself from unscrupulous family members who already have all of your personal information? Really, your best bet is to check your credit report on a regular basis.
If a family member does scam you, they will probably rationalize it as “no big deal”. Of course it is a big deal, and it can hurt you and your family both financially and emotionally. Make sure that they know in *no uncertain terms* that this is unacceptable.
Don’t give your SSN to any company unless it is truly needed. Health insurance providers do not need it. Also student loan companies are no longer allowed to use your SSN as your account number.