Many Americans have taken steps in recent years to protect their identity. According to a recent report, total dollars lost due to identity theft in 2021 was $24 billion and affected 15 million consumers. If you haven’t taken measures to protect yourself, it may be a good idea to consider your options.1
Identity theft is a crime in which an individual illegally obtains and wrongfully uses another person’s personal information, such as a Social Security number, bank account number, or credit card number, generally for financial gain. Once a thief has possession of your personal information, it may be used to obtain a loan, run up credit card debt, or commit other crimes.
Individuals can take four steps to help protect themselves against identity theft. These steps are represented by the acronym S.C.A.M.
S – Be STINGY when it comes to giving out your personal information. Make sure the person requesting the information is on a “need-to-know” basis. For example, someone who claims to be calling from your bank does not need to know your mother’s maiden name if it’s already on file with the bank.
C – CHECK your financial information periodically. If you get a hard copy of your credit card and bank statements mailed to you, consider keeping these documents in a safe, secure location. Be skeptical if it appears the financial institution missed a month. Identity thieves may try to change the address on your accounts to keep their actions hidden from you for as long as possible.
A – From time to time, ASK for a copy of your credit report. This report shows bank and financial accounts in your name and may help provide evidence if someone has used your name to open another account. To obtain a report, contact any of the three major credit bureaus: Equifax, Experian, or Transunion.
M – MAINTAIN good records of your financial accounts and obligations. Experts recommend keeping hard copies or electronic versions of monthly bank and credit card statements. Easy access to this information may make it easier to dispute a transaction, especially if your signature has been forged.
Government agencies, credit card companies, and individuals have become smarter about protecting data and identifying perpetrators. But identity thieves consistently devise new strategies to obtain personal information.
Having your identity stolen may result in out-of-pocket financial loss, plus the additional cost of trying to restore your good name. Help protect yourself by using caution when sharing your personal information and keeping an eye out for warning signs.
The Age of Risk
Instances of identity theft are more frequent among individuals aged 60 to 69.
Chart Source: Federal Trade Commission, 2022
1. Javelin Strategy & Research, 2022