How to Prevent Identity Theft

Identity theft is no new thing. Pretending to be someone you’re not is one of the oldest tricks in the criminal trade, right next to lockpicking and pickpocketing. But if identity theft ever had a golden age, it would be the one we are now living in.

Technology – not just the internet – has made stealing personal information easier than ever. For example, impersonating a bank employee used to require face-to-face interaction. Few criminals have the acting chops to pull off such a ruse. But now that everyone has a phone, anyone can call you, claim to work for your bank, and ask you to confirm your Social Security and checking account numbers. It’s called pretexting, and it’s often targeted at senior citizens.

That said, the internet truly is the identity thief’s preferred tool nowadays. The FBI reported over 800,000 complaints of cybercrime in 2022 alone – up 5% from the year before. Many of those were phishing attacks, where criminals texted and emailed their victims posing as someone they already knew. For example, business email compromise is perpetrated by a criminal posing as their victim’s boss or coworker. They ask the victim to wire money or divulge valuable company information. The victim obliges, thinking they are just doing their job.

Types of Identity Theft

We just provided two specific examples of identity theft: pretexting and phishing. Let’s review a few of the broader forms of identity theft to provide a little more context.

• Financial Identity Theft – Once a thief has your Social Security number (SSN), they have enough information to open a credit card in your name. They get to enjoy all the benefits of having your credit card – but you are ultimately on the hook for the debt they rack up. The Social Security Administration receives about 10,000 allegations of SSN misuse each year.

• Tax Identity Theft – If a thief knows enough about you to file your tax return, then they can apply for and receive your tax refund as well. This type of identity theft is often perpetrated by criminals who call their victims claiming to work for the IRS. The IRS does not usually initiate phone contact without mailing several written notices first, so exercise extreme caution if you hear from the bureau out of the blue.

• Medical Identity Theft – Your credit and tax return aren’t the only valuable things tied to your identity. If you have a health insurance plan, a criminal can use it to file fraudulent claims to your insurance provider. They may also use your medical identity so they can receive prescription drugs to flip on the black market.

How to Protect Yourself Against Identity Theft

To summarize, thieves can use your personal information to assume your identity. They may then use your identity to steal from your employer, your insurance provider, or you yourself. That’s why preventing identity theft begins with protecting your personal information.

• Keep your SSN secret. Do not share that nine-digit number unless you are sure of who is asking for it, why they need it, and how they intend to protect it. Destroy any record of your SSN that isn’t your government-issued card.

• Be skeptical of emails, texts and phone calls. A criminal may steal the password to your coworker, close friend or loved one’s email address. They may also steal their cell phone, or use software to send texts from a phone that isn’t in their possession. If anyone you know requests that you send them money, confirm whether it really is them. Beware: scammers are vicious. They often call senior citizens claiming to be their grandchildren in need of bail money.

• Use strong passwords and two-factor authentication. Use a random generator to create the strongest passwords, and never reuse the same password twice. Use two-factor authentication whenever the option is available, as it can block a thief’s access to your account if they haven’t also stolen your cell phone. On that note, make sure your phone is password protected as well.

• Destroy sensitive documents. Bank and credit card statements both contain information that you wouldn’t want to fall into the wrong hands. Even junk mail containing preapproved credit offers can be used to steal your identity. Shred these documents before disposing of them. If you have a fire pit or fireplace, even better.

• Sign up for alerts. Many financial services give you the option of receiving an alert (like a text or email) whenever someone logs into your online account. Take advantage of that option, as it can inform you the instant someone tries stealing more of your personal info – or worse yet, your money.

• Freeze your credit. Equifax. Experian. TransUnion. Once you have frozen your credit with all three major credit bureaus, identity thieves will be unable to open new credit cards in your name. Unfreezing and refreezing your credit whenever you want to open a new card takes a little extra time, but not nearly as much as dealing with outstanding debt that you had no hand in creating.

Sherburne State Bank takes identity theft seriously. That’s why we NEVER request personal information by email, phone or text message, and also why we offer even more tips to prevent identity theft on our Customer Awareness page. If you would like to learn more about how we help our customers avoid identity theft, then we welcome you to contact us or visit one of our locations in Becker, Monticello or Princeton, MN today!