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.
I had this same thing happen to me yesterday with my Discover It card. I used it a few times this weekend locally (New Orleans), including yesterday morning, so when I got an email about fraud alert I assumed it was from my own activity and was ok. I thought maybe it was flagged because I hadn’t been using the card much in recent months and then used it for quite a few transactions in just a couple days. Unfortunately, the charge was $500 at a place I didn’t recognize, and all of my purchases had been under $30 or so. When I called Discover, they said it was in Detroit, MI. I’ve only been to Detroit once maybe 5 years ago on a layover, and definitely didn’t have this card then. Then the Discover rep told me it was swiped! I didn’t know they could recreate cards. Fortunately something had tipped them off and they denied the charge and emailed me immediately. As soon as I called them, my account was shut down. I was very impressed with Discover on this. I have no idea where anyone could have gotten my info. I have heard of skimming as gas stations, but I haven’t used my card at a gas station in a couple of months. I did use it once recently outside the country, but that was at a very reputable venue so I can’t imagine why I’d have an issue there either. Regardless, I’m very happy Discover caught this, and it is now in their hands and no headache for me.
This exact situation happened to me last November with my Alaska Visa. Had a random $1100 grocery purchase on my card, plus some rejected Home Depot attempts. The BofA agent suggested that my info could have been stolen through one of the popularized data breaches (maybe target?) and a new card was created. I have to hand it to BofA – not my favorite bank but they were on top of this and handled it well.
I had a similar case back in Feb. I checked in to my hotel in Hong Kong and maybe a few hours later my card was also swiped somewhere in SFO. Luckily I called Barclays when I got back and they reversed the charges as so did the hotel in SFO pro actively.Not sure how such things happen but good to see card companies do watch out for us.
What an amazing, inspiring and right on article. I agree with what you write. Exactly what I have been longing to read about. Your words never fail to inspire me! Such a beautiful piece of writing. Thank you!! 🙂 🙂 🙂
I had almost the same thing happen recently with my debit card: someone had stolen my card info and PIN (!) with an ATM skimmer device, then used it to make a duplicate card. What’s even weirder in my case is that they used it at a local business just a few blocks from my home. ? So creepy. I hope they were able to use ATM cameras to catch them.
I totally agree with you on this one. Security breaches that directly attacks the identity of an individual or a business is the matter of concern from the very first day a person goes online. There are other phishing attack that hit the money transactions online. Money once lost can be earned later but the identity is one thing that never gets the real position it has earlier. Now, we can fight back against identity theft by following these tips.
I work in security for a major financial firm and I cannot stress enough that no bank will contact over email to get your information. No matter what the email says (ie Your account may have been tamper with, please login to this link to verify your pin, etc…) you should never respond to these solicitations. If you think it may be legitimate you should call the number on the back of your card (Again not from the website or email that you received or were directed to) and verify it with a customer service rep. I’ve seen this work alot. Never give your information unsolicited. If they call or email you, you should not trust them by default.
This post was timely as I just received a letter from my insurance company saying that a laptop with my personal info (SS#, address and DOB) was stolen from one of their offices.
I immediately called the credit bureaus and had an alert placed on my information. I always check my credit reports and in fact just got a free one two weeks ago so I have something to compare to. The alerts and freeze only stay for 90 days so I will have to reorder them in three months but it is worth it.
I never thought that would happen to me but it did….and I am glad I had already started taking those steps BEFORE it happened.
Excellent advice. I buy storage rooms when they are up for auction and resell on ebay for a living. You would not believe the amount of personal information that people store in these rooms. I have found, in almost every auction I have won, bank records, tax records and old bills belonging to the owners. I always burn those papers for them. Not so honest people may not. Be careful what you put in a storage room.
The scary thing is that even with all these precautions, it can still happen.
2 years ago I got a call from my credit card due to some unusual activity. I was traveling around the province for a vacation at the time, so I assumed the various locations caused a red flag, but it turned out that someone had stolen my credit card numbers, made themselves a copy of the card (I still had my card, and they managed to use their copy at a self-paying gas station) and charged up about $1500 at gas stations, liquor stores and Staples (?!).
I didn’t notice any of this activity because I was out of town and not checking my accounts online, but since it was my bank that noticed it, luckily I had no troubles getting the charges removed.
Based on the location of the fraudulent charges, the timing, and when I’d recently used the card, I’m 90% sure that the info was stolen when I paid for a meal at a sports bar using my credit card.