Ways Identity Theft Happens

1. Stolen Mail

How It Happens: Thieves can steal mail, such as bills or statements, to gather personal information like your name, address, and account numbers.
What You Can Do to Safeguard Your Information:

Use a locked mailbox or a post office box.
Pick up your mail promptly, especially sensitive documents.
Opt for electronic billing and statements to reduce physical mail.
Shred any personal or financial mail before discarding it.

2. Trash Theft

How It Happens: Personal information can be extracted from documents you throw away, such as bank statements, credit card offers, or medical records.
Steps to Keep Your Information Secure:

Shred documents containing personal or financial information.
Invest in a paper shredder for sensitive paperwork.
If possible, recycle documents rather than throwing them away.

3. Card Skimming

How It Happens: Skimming devices are installed on ATMs or gas station pumps to capture your card details when you swipe or insert your card.
What You Can Do to Guard Against It:

Always inspect card readers for unusual attachments or signs of tampering before using them.
Use ATMs at well-lit, secure locations, preferably inside banks.
Cover the keypad while entering your PIN to avoid "shoulder surfing" (someone watching over your shoulder).
Use contactless payment methods or mobile payment apps to avoid card skimming altogether.

4. Phishing Scams

How It Happens: Fraudsters send fake emails, texts, or phone calls posing as legitimate companies or institutions to trick you into sharing sensitive information like passwords, social security numbers, or bank details.
How to Defend Yourself from Phishing:

Be cautious about unsolicited emails, texts, or phone calls asking for personal information.
Verify the legitimacy of the sender by contacting the company directly using a trusted contact method.
Don't click on suspicious links or attachments.
Use two-factor authentication for added protection on your accounts.
Always double-check website URLs to ensure they are legitimate (e.g., https://).

5. Lost or Stolen Items

How It Happens: If your wallet, phone, or other personal items are lost or stolen, someone could use them to access your financial or personal information.
How to Keep Your Information Safe:

Keep your wallet, phone, and personal items secure and within sight.
Use a phone lock screen with a PIN or biometric feature (fingerprint/face recognition).
Enable remote tracking and wiping features on your phone (e.g., Find My iPhone or Google’s Find My Device).
Immediately report lost or stolen credit cards and phones to the respective authorities and companies.
Use credit card alerts to notify you of any unauthorized transactions.

6. Social Media Oversharing

How It Happens: Sharing too much personal information on social media platforms (e.g., birthdays, addresses, phone numbers, travel plans) can give thieves valuable details to commit fraud.
What You Can Do to Keep Your Details Private:

Limit the amount of personal information you share online.
Adjust privacy settings on social media accounts to control who can see your posts and personal details.
Be cautious about accepting friend requests or connecting with people you don’t know well.

7. Public Wi-Fi and Online Security

How It Happens: Using unsecured public Wi-Fi (like in cafes, airports, or hotels) can make your devices vulnerable to hackers who may intercept sensitive information.

What You Can Do to Protect Your Data:

Avoid accessing sensitive information (e.g., bank accounts, email) over public Wi-Fi.
Use a Virtual Private Network (VPN) to encrypt your internet connection when using public Wi-Fi.
Turn off sharing options (like file or printer sharing) when connected to public networks.

8. Data Breaches

How It Happens: Hackers may breach company databases, stealing customer data like Social Security numbers, addresses, and credit card information.
What You Can Do to Minimize the Impact:

Stay informed about any data breaches related to companies you interact with. Many companies will offer free credit monitoring services if they experience a breach.
Regularly update passwords for online accounts and use multi-factor authentication.
Consider using a credit freeze or fraud alert with the credit bureaus if your data was exposed in a breach.

9. Credit Monitoring Services

How It Happens: Without monitoring your credit activity, it can be difficult to detect fraud or unauthorized use of your personal information.
What You Can Do to Stay Alert:

Sign up for a credit monitoring service that will alert you to any suspicious changes to your credit report.
Consider using identity theft protection services that offer real-time alerts, assistance with resolving fraud, and even financial compensation if your identity is stolen.

10. Secure Your Devices

How It Happens: Unsecured devices (computers, smartphones, tablets) can be easily accessed by thieves if they are lost or stolen, leading to identity theft.
What You Can Do to Secure Your Devices:

Use strong passwords or PINs for all devices and apps.
Enable device encryption to protect your data in case the device is lost or stolen.
Regularly update software and apps to ensure your devices have the latest security patches.
Set your devices to automatically lock after a period of inactivity.
Install antivirus and anti-malware software on all devices to prevent malicious software from stealing your information.

11. Avoiding "Shoulder Surfing"

How It Happens: Fraudsters can collect personal information by observing you in public spaces, such as at an ATM, coffee shop, or on public transport, as you enter passwords, PINs, or other sensitive details.
What You Can Do to Prevent It:

Be aware of your surroundings when entering sensitive information in public.
Stand in front of your PIN pad when using ATMs or entering passwords in public.
Use privacy screens on your smartphone or tablet to make it harder for others to view your screen.

12. Guard Your Personal Identification Numbers (PINs) and Passwords

How It Happens: Simple or easy-to-guess PINs and passwords can be easily cracked by fraudsters, especially if they’re used across multiple sites.
What You Can Do to Strengthen Your Security:

Use long, unique passwords for each account, incorporating a mix of letters, numbers, and symbols.
Enable two-factor authentication (2FA) on all accounts that support it for an extra layer of protection.
Avoid using easily guessable information like your birthdate or names of family members.
Use a password manager to securely store and manage your passwords.

13. Watch for Red Flags in Financial Statements

How It Happens: Unauthorized charges or account changes can go unnoticed if you don’t regularly review your bank and credit card statements.
What You Can Do to Spot Fraud Early:

Regularly monitor your bank and credit card statements for unfamiliar transactions.
Report any suspicious activity to your bank or card issuer immediately.
Set up alerts on your account to notify you of any transaction activity, including those over a specified amount.

General Tips to Reduce Your Risk of Identity Theft and Fraud:

Regularly check your credit reports for any suspicious activity.
Use strong, unique passwords for your online accounts and update them frequently.
Monitor your bank and credit card statements for unusual transactions.
Consider placing a fraud alert or credit freeze on your accounts with the credit bureaus if you're worried about identity theft.

By incorporating these additional strategies into your routine, you can significantly enhance your protection against identity theft and fraud. Staying proactive and aware is key to preventing potential threats!

How can Identity Theft & Fraud occur?