Top 3 Methods to Prevent Identity Theft | CRE

Identity theft is a serious crime that can have devastating consequences. It involves someone stealing your personal information, such as your Social Security number, credit card details, or bank account information, and using it for their own financial gain. The impact can range from damaged credit scores and denied loans to legal problems and significant financial losses. Protecting yourself from identity theft is crucial in today's digital age, where data breaches and online scams are increasingly prevalent. This article, brought to you by CRE (Cybersecurity Resource Experts), will outline the top three methods you can implement to drastically reduce your risk of becoming a victim.

Understanding the Threat of Identity Theft

Before diving into the solutions, it's important to understand the scope and nature of the problem. Identity theft takes many forms, including:

• Credit Card Fraud: Unauthorized charges made on your credit card.
• Account Takeover: Gaining access to your existing financial accounts.
• Government Documents and Benefits Fraud: Using your identity to file taxes, claim government benefits, or obtain driver's licenses.
• Medical Identity Theft: Using your identity to receive medical treatment or prescriptions, potentially compromising your medical history.
• Criminal Identity Theft: Providing your information to law enforcement during an arrest.

The methods used by identity thieves are constantly evolving, from traditional dumpster diving to sophisticated phishing scams and malware attacks. Staying informed and proactive is key to protecting yourself.

Method 1: Proactive Credit Monitoring

Credit monitoring is a crucial step in preventing and detecting identity theft. It involves tracking your credit reports for any suspicious activity, such as new accounts opened in your name, changes to your address, or unusual credit inquiries. Early detection allows you to take immediate action to mitigate the damage.

Why Credit Monitoring is Essential

• Early Detection of Fraud: Receive alerts about suspicious activity on your credit reports, allowing you to stop fraudulent transactions before they escalate.
• Protection Against New Account Fraud: Be notified when new accounts are opened in your name, preventing identity thieves from racking up debt under your identity.
• Improved Credit Health: Regularly review your credit reports to identify and correct any errors that may be affecting your credit score.
• Peace of Mind: Knowing that your credit is being monitored can provide peace of mind and reduce anxiety about identity theft.

Types of Credit Monitoring Services

Several options are available for credit monitoring, ranging from free services to premium subscription-based plans.

• Free Credit Monitoring: Many banks and credit card companies offer free credit monitoring services to their customers. These services typically provide alerts when there are changes to your credit report. Credit Karma and Credit Sesame are popular options.
• Paid Credit Monitoring Services: Companies like Experian, Equifax, and TransUnion offer paid credit monitoring services that provide more comprehensive protection, including identity theft insurance and fraud resolution support.
• Credit Freezing: A credit freeze, also known as a security freeze, restricts access to your credit report, making it difficult for identity thieves to open new accounts in your name. You can freeze your credit reports for free with each of the three major credit bureaus. This is a highly recommended measure.
• Credit Lock: Similar to a freeze, but often offered as a paid service that allows you to quickly "lock" and "unlock" your credit report as needed. However, remember that a full credit FREEZE is free and provides the same core protection.

Choosing the Right Credit Monitoring Service

When selecting a credit monitoring service, consider the following factors:

• Coverage: Ensure the service monitors all three major credit bureaus (Experian, Equifax, and TransUnion).
• Alerts: Look for a service that provides timely and detailed alerts about suspicious activity.
• Fraud Resolution Support: Choose a service that offers assistance with resolving identity theft issues, such as filing police reports and contacting creditors.
• Cost: Compare the costs of different services and choose one that fits your budget.

Method 2: Implementing Strong Password Security

Weak passwords are a major vulnerability that identity thieves often exploit. Creating strong, unique passwords for all your online accounts is a fundamental step in protecting your personal information.

The Importance of Strong Passwords

Strong passwords are difficult to guess or crack, making it harder for hackers to gain unauthorized access to your accounts. They act as the first line of defense against cyberattacks and data breaches.

Characteristics of a Strong Password

• Length: Use a password that is at least 12 characters long, and preferably longer.
• Complexity: Include a combination of uppercase and lowercase letters, numbers, and symbols.
• Uniqueness: Use a different password for each of your online accounts.
• Avoidance of Personal Information: Do not use personal information such as your name, birthday, or pet's name in your passwords.
• Randomness: The password should be a random string of characters, not a word or phrase that can be found in a dictionary.

Password Management Tools

Managing multiple strong passwords can be challenging, but password management tools can help.

• Password Managers: These tools securely store your passwords and automatically fill them in when you log in to websites. Popular password managers include LastPass, 1Password, and Dashlane. They also can generate strong, random passwords.
• Browser-Based Password Managers: Many web browsers, such as Chrome and Firefox, offer built-in password managers. While convenient, these may not be as secure as dedicated password managers.
• Two-Factor Authentication (2FA): Enable 2FA whenever possible. This adds an extra layer of security by requiring a second verification method, such as a code sent to your phone, in addition to your password.

Best Practices for Password Security

• Change Passwords Regularly: Update your passwords every few months, especially for sensitive accounts like your bank account or email.
• Avoid Reusing Passwords: Never use the same password for multiple accounts.
• Secure Your Password Manager: Protect your password manager with a strong master password and enable two-factor authentication.
• Be Wary of Phishing Scams: Be cautious of emails or websites that ask you to enter your password. Always verify the legitimacy of the request before providing any information.

Method 3: Securely Disposing of Sensitive Information

Identity thieves often obtain personal information by sifting through trash or intercepting mail. Securely disposing of documents and electronic devices that contain sensitive information is crucial to preventing identity theft.

Protecting Your Physical Documents

Paper documents such as bank statements, credit card bills, and medical records can contain a wealth of personal information that identity thieves can use.

• Shredding: Use a cross-cut shredder to destroy sensitive documents before discarding them. A strip-cut shredder is less effective.
• Burning: If you have a safe and controlled way to burn documents, this is another effective method of disposal.
• Secure Disposal Services: Consider using a professional document destruction service for large quantities of sensitive documents.

Safeguarding Your Electronic Devices

Electronic devices such as computers, smartphones, and tablets can contain personal information that identity thieves can access if the devices are not properly secured before disposal.

• Wiping Hard Drives: Before discarding or selling a computer, use a data wiping program to securely erase the hard drive. Simply deleting files is not enough.
• Factory Reset: Perform a factory reset on smartphones and tablets to erase all personal data.
• Physical Destruction: Consider physically destroying hard drives and other storage devices to ensure that the data is unrecoverable.
• Securely Erase SSDs: Solid State Drives (SSDs) require specific secure erase commands. A simple wipe might not be enough. Use the drive manufacturer's utility or a professional data destruction tool.

Protecting Your Mail

Mail theft is a common way for identity thieves to obtain personal information.

• Promptly Collect Mail: Retrieve your mail from your mailbox as soon as possible after it is delivered.
• Use a Locking Mailbox: Consider using a locking mailbox to prevent mail theft.
• Opt Out of Unnecessary Mail: Reduce the amount of unsolicited mail you receive by opting out of marketing lists and credit card offers.
• Shred Unwanted Mail: Shred unwanted mail that contains personal information, such as pre-approved credit card offers.
• Consider a PO Box: If you are concerned about mail theft at your home address, consider renting a post office (PO) box.

Conclusion

Identity theft is a serious threat, but by taking proactive steps, you can significantly reduce your risk of becoming a victim. Implementing these top three methods – proactive credit monitoring, strong password security, and secure disposal of sensitive information – will help you protect your personal information and financial well-being. Remember to stay vigilant, stay informed, and prioritize your online and offline security.