Protect Yourself Against Identity Theft: An Overview of Common Threats and Prevention

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At My Retirement Network, we are committed to providing our community with the knowledge they need to protect themselves from the growing threat of identity theft. Our upcoming webinars in 2025 will cover this topic in even greater detail for our clients in various workplace environments, including federal agencies and private companies. In today’s issue, we will examine the content we’ll be covering on this ever-growing threat to all of us.

Identity theft continues to be a significant issue, with U.S. fraud and identity theft losses surpassing $10 billion in 2023. As we gear up to offer “Identity Theft” webinars in 2025 for clients in workplace environments such as federal agencies and private companies, this article provides a comprehensive look at the different types of identity theft and practical strategies to protect yourself from these growing threats.

The Growing Threat of Identity Theft

According to the Federal Trade Commission (FTC), consumers lost over $10 billion to fraud in 2023. This represents a 14% increase from 2022, with imposter scams and investment-related fraud leading the way. While not all fraud involves identity theft, these statistics highlight the importance of vigilance in today’s digital world.

Identity theft can take many forms, and understanding these threats is the first step toward prevention. Here are the most common types of identity theft that can occur:

Types of Identity Theft

1. Medical Identity Theft Medical identity theft occurs when someone uses your personal information to access healthcare services. This could mean obtaining prescription drugs or undergoing medical procedures in your name, leaving you with incorrect medical records and a potential lack of coverage.
2. Financial Identity Theft Financial identity theft extends beyond simple credit card fraud. In many cases, thieves may use your Social Security number, driver’s license, or other identifiers to open new credit accounts, take out loans, or even access your home equity line of credit.
3. Criminal Identity Theft Criminal identity theft happens when someone uses your identity while committing a crime. This can result in a criminal record being attached to your name, creating a legal nightmare for the actual victim.
4. Employment Identity Theft In employment identity theft, a thief uses your personal information to secure a job, often to pass background checks or avoid legal obligations under their real identity.
5. Estate Identity Theft A lesser-known but equally damaging type of identity theft is estate identity theft, where a thief uses the personal information of a deceased individual to steal money or open new accounts.
6. Synthetic Identity Theft One of the more complex types of identity theft, synthetic identity theft, occurs when criminals combine real and fake information to create a new, false identity. They may use a child’s Social Security number or even the information of incarcerated or deceased individuals to open fraudulent accounts.

How Identity Theft Happens

Identity theft can occur in various ways, from blatant theft of your wallet or mail to sophisticated online schemes. Here are some of the most common methods thieves use to access your personal information:

• Dumpster Diving: Thieves can retrieve sensitive information from discarded mail and documents.
• Online Hacking: Personal data shared online or stored on insecure systems can be hacked.
• Business Record Theft: Employee records or financial data at companies may be accessed by insiders or hackers.
• Mail Theft: Thieves divert or steal mail to obtain bank statements, credit card information, or personal identifiers.

Warning Signs of Identity Theft

It’s essential to stay alert for signs that your identity may have been compromised. Some common warning signs include:

• Unexpected denials of credit.
• Unauthorized charges on your credit card.
• Missing credit card bills or bank statements.
• Significant drops in your credit score.
• Debt collectors contacting you for debts you did not incur.

If you notice any of these signs, it’s crucial to act quickly to prevent further damage.

Protection and Prevention Tips

Here are some practical steps you can take to protect yourself from identity theft:

• Keep Personal Information Secure: Store personal documents in a safe place and shred sensitive documents before disposal.
• Monitor Your Financial Statements: Regularly review your bank and credit card statements for any irregularities.
• Be Cautious Online: Only shop on secure websites (look for “https” in the URL) and avoid using public computers for personal transactions.
• Use Strong Passwords: Ensure your passwords are unique, complex, and not easily guessable.
• Limit Sharing of Your Social Security Number: Avoid giving out your Social Security number unless absolutely necessary.

What to Do If You Become a Victim of Identity Theft

If you suspect you’ve been a victim of identity theft, it’s important to take immediate action:

1. Contact the Police: Open a case to allow authorities to investigate the crime. This will also help in clearing your name with creditors.
2. Notify Your Bank: Ensure your account information hasn’t been compromised and close or freeze affected accounts.
3. Contact Credit Bureaus: Request copies of your credit report and have agencies flag your accounts with a fraud alert.
4. Cancel Affected Accounts: Close any compromised credit card or bank accounts and request new ones.
5. Keep Records: Document all actions taken, including the names of those you spoke to, dates, and details of the steps taken.

Stay Informed: Identity Theft Resources

The Federal Trade Commission’s website, IdentityTheft.gov, is an excellent resource for identity theft victims, offering checklists, sample letters, and other tools to help you recover. You can also contact the FTC’s fraud hotline at 877-IDTHEFT.