Bad news Georgians. If you live in Georgia, you’re a resident of the state with the highest percentage of identity theft reports. And Georgia not surprisingly also has the top four metro areas for identity theft.
Identity theft can range from someone stealing your credit card information as you pay for an item online (formjacking) to opening an account in your name to taking over a current account. However, people have also been the victim of IRS fraud where a criminal uses your information to file a fake tax return to receive a refund. And watch out too for medical identity theft – crooks may file claims and pocket the cash or fill prescriptions in your name. Here are some actions you can take to limit the opportunities identity thieves have to steal your data.
Freeze your credit
If you only do one thing – and I’m certainly not suggesting you only do one thing – freezing your credit is the one thing to do. If your credit is frozen, no one can open an account in your name until the freeze is lifted. Yes, this means if you’re buying a house or getting a new credit card, you’ll have to lift the freeze. But it’s easy to do by visiting the three major credit bureaus’ websites.
Reduce what’s in your wallet
We’ve all seen the headlines where thieves have stolen personal information from thousands of people by hacking Target or Home Depot files. While these tend to make the news, you won’t hear as often about the cousin or brother who takes a peek into their relative’s wallet and quietly goes about stealing their identity. And stolen/lost wallets are still a way thieves get credit cards for impromptu shopping trips.
Remove all items you don’t need from your wallet. If you carry five credit cards, take out the ones you don’t use and store them securely. If you’re carrying your Social Security card, remove it from your wallet and put it with those credit cards you’re not using. And if you’re someone who carries around an extra check just for emergencies, consider leaving it at home.
Different passwords for important accounts
I don’t think many people are searching for your password to the neighborhood pool and tennis site. But the password for your bank or brokerage? Much more interesting to potential thieves. For those important accounts – credit cards, banks, brokerages, health care, retirement plans – set up different passwords for each. Too often, people use the same password for different accounts. If your email used for logging in is stolen and someone guesses the password, it’s easy to go from account to account.
Do the two-step
Two-step or multi-factor authentication is where the website sends you a code – usually by text or email – that you enter after you have entered your password. Only after that code is entered and verified are you allowed into your account.
Check your credit reports
If there’s an account open in your name, it should show up on your credit report. You can get three free per year (one from each bureau) through AnnualCreditReport.com. Most planners suggest you check one every three or four months throughout the year instead of checking all three at once and then waiting a year.
Alerts
Many financial institutions will send you text alerts when there’s activity with your account. So if someone withdraws money through an ATM and you thought your debit card was safely in your wallet, you’ll get a text. Consider implementing these on your important accounts.
Watch out for scams
Unexpected emails or phone calls from your bank should raise a red flag, especially if they are asking for information they should know (Can you confirm your date of birth? What’s the security code on the back of your credit card?). Never give personal information to an unsolicited caller. Find a telephone number on your bank statement or credit card and call them back to ensure what you’re being told is accurate.
Closely review statements
Credit card bills, bank statements, health care statements. You should be going over all of these with a fine-tooth comb. Make sure that the items on your credit card bill are accurate. Make sure there’s not a surprise $200 withdrawal from your bank account. And watch for mysterious prescription refills or hospital visits on your healthcare forms.
Stick to the schedule
Whatever schedule you develop to check your finances, stick to it. Identity theft is much easier to deal with if it’s only a few days old. Check your credit card bills and bank statements when they arrive every month. Make sure you’re checking your credit reports several times per year.
Finally, don’t just hand over information because someone asks for it. For instance, Social Security numbers are for the Social Security Administration. If someone wants this or any other information you don’t feel right about sharing, ask them if there’s an alternative.
Photo by Ben Sweet