by Emily Hechler 
According to the Federal Trade Commission, identity theft happens when someone uses your personal or financial information without your permission. This can include anything from your name, address, credit card or bank account information, Social Security number, and insurance account numbers.
Scammers are getting better at finding your information and damaging your finances and reputation. Protecting yourself is the first line of defense. In this guide, we’ll show you how to prevent identity theft, how to recognize it quickly, and what to do if it happens to you.
How to Protect Your Identity
Identity theft can happen to anyone, but a few proactive steps can make a big difference. Whether you’re at home, at work, or on vacation, taking time to secure your personal information helps protect your finances and your peace of mind. Here are a few practical tips to help you stay ahead of scammers.
Keep Your Software Up to Date
Keeping the software on your devices up to date ensures that you’re using the latest security tools to prevent malware threats. Many software programs will inform you of a new version but require you to manually start the update. Since we spend so much time online, updating your software should be a priority.
Monitor Your Accounts Regularly
Don’t wait for your monthly statement. Keep an eye on your accounts with online or mobile banking. Regularly reviewing your transactions helps you spot unusual or fraudulent activity early. Signing up for free eStatements can simplify the process and reduce paper clutter. I set a reminder on my phone for every Thursday during my lunch to review my accounts online.
Check Your Credit Report Often
Every U.S. consumer is entitled to a free credit report each year from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Review your reports carefully and check to make sure all the information on your report is warranted and that there are no errors.
Review Your Social Media Privacy Settings
When was the last time you checked your privacy settings, or even consider what you post? Scammers use social media to gather personal details about potential victims. Social media is great for posting personal updates. Here are some secure tips to consider before posting.
- Keep your account set on private. This way you are in control of who can see your posts, stories, or other updates.
- Don’t share your home address. If the wrong person finds it, you may be more susceptible to scams.
- Post about your vacation after you return home. Alerting the wrong person that you’re on vacation leaves your home and mail at risk.
Look for the Lock Symbol
Before entering personal or financial info on a website, check the address bar for a padlock icon. This symbol means the site uses encryption, which helps keep your information safe. If the lock isn’t there, it isn’t a safe site and may be susceptible to a data breach.
Consider Freezing Your Credit
If you suspect your information has been compromised, freezing your credit can stop fraudsters from opening new accounts or loans in your name. It’s free to freeze and unfreeze your credit at all three bureaus. You shouldn’t freeze your credit indefinitely, just long enough to prevent identity theft and to take precautionary or recovery steps. If you’re applying for a loan or credit card, you’ll need to unfreeze your credit before doing so.
Protect Your Identity Offline Too
Digital security is important but so is protecting your physical documents. Implementing a few simple practices can give you peace of mind knowing that you and your finances are safe. Here’s how:
- Shred sensitive documents like utility bills, canceled checks, old IDs, and credit card offers before throwing them away.
- Don’t share your home address. If the wrong person finds it, you may be more susceptible to scams.
- Post about your vacation after you return home. Alerting the wrong person that you’re on vacation leaves your home and mail, at risk.
Stay Safe
Identity protection is essential. Scammers get better at their schemes every day. Taking these steps to protect yourself from identity theft is much easier to implement before you become a victim. If you’ve been a victim of identity theft, make sure you take access back from the scammer as soon as possible, then use these safeguards to prevent it from happening again.
How to Detect Identity Theft
Identity theft can take on many forms. In the end, a scammer has access to your personal information and steals your money. A scammer may get access to your information from a variety of sources. Here, we break down common ways your personal information may be accessed and how to determine if the situation is indeed identity theft.
Data Breach Victim
Unfortunately, you can become a victim of identity theft because of a data breach at a company where you’ve shopped. In these situations, there’s nothing you could have done differently to prevent the data leak. However, just because your data was leaked, that doesn’t mean you’re going to be a victim, you’re just more likely to become a victim. Companies release public statements when they experience a data breach attack. If a company you’ve shopped with had a data breach, determine what personal information was leaked. Then, keep an eye on your credit report and bank accounts for unusual activity.
Unexpected Financial Activity
As previously mentioned, monitor your accounts regularly so you can catch identity theft. If you notice charges to your account that you didn’t make, you may be a victim of identity theft. This can include debit and credit card charges, ATM visits, or other account withdrawals and transfers. Before escalating the issue, check with joint members on your account or others that have access to your account to make sure that they didn’t initiate the transactions on accident. For example, when my husband and I got married, we took a while before combining our finances. He gave me his debit card to go on a grocery run. I forgot to give it back for a couple days, resulting in panic when he noticed a few charges he didn’t initiate.
Credit Report Changes
Unexplainable changes on your credit report are likely due to identity theft. When fraudsters get access to your information, they can file for new lending products, like a credit card, under your name. This information will appear on your credit report. You may also see documentation of missed payments, which will further damage your credit score. In addition, check your personal information, such as your address, to spot identity theft.
Verification Issues
Setting up two-factor authentication on accounts with personal information makes it extremely difficult for scammers to access your information. If you receive a notification to verify your identity without trying to login, this is likely due to a scammer trying to login to your account. On the other hand, you may try logging into an account and are asked to verify your identity without setting up two-factor authentication. This means that the scammer locked you out of your account. At this point, they also have access to a lot of personal information, putting you at high risk for identity theft.
Unexplainable Bills
Remember when we discussed that you may find new accounts from thieves on your credit report? It’s possible that you’ll receive a bill for your payment before noticing it on your credit report. These bills may come from medical companies, subscription services, debt collectors, and more.
Tip: You may receive mail that looks like a bill but is a prequalification for a loan. This can still be a warning sign of identity theft. Or, it may just be junk mail. Be sure to correctly identify what you received before reporting fraud.
Now What?
Staying informed of how your information may be stolen can help you stay alert for red flags. Detecting identity theft is the first step to recovering from identity theft and preventing more damage. Even after you take action to recover from identity theft, you still need to monitor your information and accounts to ensure that the scammer isn’t doing more damage.
How to Recover from Identity Theft
Now that we’ve discussed how to detect identity theft, you may realize that you are a victim. If you are a victim of identity theft, follow these steps to prevent more damage and to recover your information and finances.
Step 1: Contact Your Financial Institution
The first thing you should do is reach out to your credit union or bank. They may already have alerts on file, or they can help you lock things down immediately. Be sure to:
- Dispute unauthorized transactions. Disputing the transactions can help you get your money back and increase your credit score, if it was damaged.
- Lock or close any affected accounts and cards. Closing access to your accounts can ensure that the fraudster can’t take any more of your money or access your information again.
- Order a new debit or credit card. When you get a new card, you’ll get a new card number. Even if the thief tries using your card or numbers again, they won’t be able to do so.
If it’s after business hours, you can begin this process through online or mobile banking. For step-by-step instructions, check out our Learning Center for guides with visuals on disputing fraud and securing your accounts.
Step 2: Review All Account Activity and Credit Reports
Identity theft doesn’t always stop with one account. If they have access to too much information, they can hack into more than one account. Carefully check:
- Your current and past account statements, including rarely used ones, so you can identify the first fraudulent transaction.
- Your credit reports from all three major credit bureaus: Experian, Equifax, and TransUnion so you can see if new accounts were opened, bills from the scammers weren’t paid, and if your credit score was impacted.
Look for any unfamiliar accounts, loans, or credit inquiries. If you find anything suspicious, contact your financial institution immediately and begin working with the credit bureaus to dispute the fraud.
Step 3: File a Police Report and Notify the IRS
Even if you suspect the theft happened online or overseas, it’s important to file a police report. Local authorities can use your report to build cases, especially if your information was compromised in a local data breach. You’ll also want to contact the IRS if your identity was stolen. They can help prevent fraudulent tax filings under your name and guide you through a recovery plan.
If you haven’t already, file a fraud report with your financial institution!
Step 4: Enroll in Credit Monitoring
If your personal data was part of a breach or if your credit report shows signs of fraud, consider signing up for a credit monitoring service. Alltru members can use our Premium Checking and Value Checking accounts that include identity theft protection features for a fraction of the cost of other third-party identity monitoring companies’ prices.
You should also request a fraud alert with the credit bureaus, which tells lenders to take extra steps before opening new accounts in your name.
Step 5: Rebuild Your Credit Score
Unfortunately, repairing the damage from identity theft doesn’t happen overnight. Even though you’re the victim, the burden of restoring your financial health often falls on you.
To help your credit recover:
- Continue making all loan and credit card payments on time.
- Keep documentation of everything related to the fraud.
- Be persistent and proactive about disputing inaccuracies that may continue to arise.
With patience and the right support, your credit score can bounce back. Being proactive and preventing self-inflicted credit score damage can help you recover even faster.
Conclusion
Being a victim of identity theft is unsettling. Knowing you’ve taken the necessary steps to protect yourself and your identity can give you peace of mind. Being able to detect identity theft is key for reporting the crime and rebuilding your finances and credit score.
Remember, if you think you are a victim of identity theft, let us know so we can help.
