Identity theft is a crime that involves the unauthorized use of someone’s personal information for fraudulent purposes. There are several different types of identity theft, including financial and medical identity theft, which are some of the most common. Still, each type involves a thief using someone else’s identity to access and misuse personal information that doesn’t belong to them.
Let’s examine the causes and consequences of identity theft, as well as steps you can take if you ever become a victim.
How does identity theft occur?
The most common ways someone might get access to your information without your permission include:
- Data breaches
- Finding your bank account and credit card statements
- Using malware (software that can steal your data without you knowing)
- Physical theft of credit cards, computers and mobile phones
- Hacking computers and unsecured internet browsing
- Phishing emails and texts
The consequences of identity theft
Identity theft can have a major and lasting impact on your financial health and creditworthiness, not to mention shouldering the responsibility for any outstanding payments and debts the thief incurs in your name. Additionally, resolving identity theft can be time-consuming due to the amount of paperwork, different companies or institutions, and steps involved.
How to protect against identity theft
There are several important steps you can take to guard your personal information and lower your risk for identity theft, including:
Safeguard personal information
It’s very important to use strong passwords on any digital account. You should always use a unique password—don’t use the same password for different accounts.
It’s also helpful to enable two-factor authentication, which triggers an email or text with a code to be sent for final authentication before signing into an account. Install software updates regularly on any electronic devices to make sure you have access to the latest security features.
Be cautious of phishing scams
Phishing scams are often disguised as emails and texts from people or sources who are familiar to you. These messages typically ask for personal information, money or for you to open a file or link.
Whenever you’re communicating with anyone online, be cautious when clicking on any links you don’t recognize or providing personal information. Always make sure to verify the source or point of contact before moving forward.
Monitor financial statements regularly
Regularly monitor your financial statements, even if you’ve never been a victim of identity theft. Looking through your credit reports is a great way to check on your overall financial health and make sure there hasn’t been any suspicious activity. You should also review any monthly credit, bank account or other financial statements.
Use credit monitoring and fraud alerts
Credit monitoring and fraud alerts are two available tools to help protect yourself against identity theft. It’s helpful to regularly check your credit reports for any changes or strange activity. Adding a fraud alert to your credit report or credit card also lets creditors know they should take additional steps to verify your identity before approving new lines of credit or accessing your credit report.
What to do if you’re a victim of identity theft
If you think you are the victim of identity theft, it’s important to report it immediately. You should first contact the Federal Trade Commission (FTC) at IdentityTheft.gov. You may also need to contact local law enforcement and file a police report.
Alert your banks, credit card companies and any other financial institutions as soon as possible. After you review your credit reports with the major credit bureaus, freeze your credit, replace your existing cards and set up fraud alerts to block any new unauthorized accounts from being created. Continue to regularly check your credit reports for any suspicious or unfamiliar accounts or transactions.
Being the victim of identity theft is often a difficult experience, but there are ways to find support, fix your financial standing and protect yourself moving forward.
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
