How to Protect Yourself From Identity Theft

1. Password-Protect Your Devices and Accounts

One of the easiest ways to curb identity theft is to create strong passwords for devices such as laptop computers and cellphones, along with online accounts like those for managing your banking and credit cards.

You can do this by:

• Using at least 12 characters or, even better, at least 16 characters.
• Setting up a passphrase with a string of random words.
• Combining uppercase letters, lowercase letters, numbers and symbols.
• Avoiding easy-to-guess passwords such as a name, a birth date, song lyrics or movie quotes.
• Letting a web browser, mobile browser or online tool generate a unique password.

Be sure to assign a unique password to each device and online account.

Here are three examples of strong passwords created with online password generators:

• TNC*0LJr7Tw&S8f#
• A9@jGWpsFn2#HKSM$PKnNk
• p84MB43TwEj39vJG

Although these are strong passwords, don't copy and paste them to use as your own.

2. Use a Password Manager

Remembering all of your passwords can be a pain. A password manager is a secure tool for storing and managing all of your online passwords. It can be an app, browser extension or built-in feature.

With a password manager, you can:

• Create strong and unique passwords for each account.
• Stash them in a secure, encrypted digital vault.
• Autofill login details when you use apps or websites.
• Rely on one master password to access it.

Most password managers work across electronic devices, including your phone, laptop or tablet. Also, many password managers can send alerts or warnings about data breaches, compromised passwords and suspicious or phishing websites.

Learn more: Should I Use a Password Manager?

3. Don't Carry Your Social Security Card

Keep your Social Security card in a safe place and share it only when required. In most cases, simply supplying your Social Security number should be sufficient.

Take the time to memorize your Social Security number, and be cautious about who you give it to.

4. Protect Your Personal Documents

Identity thieves can do serious damage if they get ahold of personal documents like bank and credit card statements. To protect these documents:

• Store sensitive documents such as your Social Security card, Medicare card, bank statements and credit card statements in a secure place at home (a locked safe or file cabinet works well).
• Shred purchase receipts, credit card offers, loan and credit applications, insurance forms, bank statements, credit card statements, tax returns, medical bills, pay stubs and similar documents that you no longer need.
• Frequently check your mailbox so personal documents don't sit there for too long, creating a temptation for thieves.
• Don't share personal documents with people whose trust you question.

5. Watch Out for Phishing Attempts

Some identity thieves go phishing to do their dirty work. In a phishing scam, a crook impersonates a trustworthy person or organization to trick you into clicking a link, downloading a file or divulging sensitive information like credit card numbers or passwords.

Phishing attempts come in the form of emails, text messages, direct messages, social media posts and phone calls. You should delete and report any suspected phishing messages.

Signs of a phishing attempt include:

• Urgent-sounding messages claiming you've won a prize or received some sort deal.
• Emails sent from suspicious addresses containing many numbers or an odd or misspelled domain name.
• Urgent or threatening language such as "Your account is restricted" or "Act now to avoid arrest."
• Unusual requests via email or text for financial information, passwords or Social Security numbers.
• Surprise messages, such as unexpected invoices, urgent payment notices or requests for gift cards or wire transfers.
• Unexpected links or attachments, which you should never click on or download.
• Bad grammar or terrible formatting.
• Messages that begin with a generic greeting like "Dear Customer."

Learn more: How to Avoid Phishing Scams

6. Never Give Out Personal Information Over the Phone

Don't share personal or financial information over the phone, through the mail or on the internet unless you know who is making the request and you initiated the outreach.

Government agencies and financial institutions will not call you to "confirm" or provide personal information including your Social Security number. If you receive a call from a business or government agency, feel free to hang up and call them back at a number you've confirmed to be legitimate before providing any information.

7. Regularly Check Your Credit Reports

It's wise to keep on top of what's in your credit reports. If you spot accounts in your name that you don't recognize, you may be the victim of identity theft.

You can get a free credit report from each of the three major credit reporting agencies by visiting AnnualCreditReport.com. In addition, you can check your credit report and FICO^® Score^Θ for free through Experian.

Tip: As an extra measure of protection, you have the right to place a security freeze on all three of your credit reports (from Experian, TransUnion and Equifax). A credit freeze is free and prevents fraudsters from opening new credit accounts in your name.

Learn more: How to Freeze Your Credit at All Three Credit Bureaus

8. Rely on Multifactor Authentication

To help prevent identity theft, take advantage of multifactor authentication. According to the federal Cybersecurity and Infrastructure Security Agency, using multifactor authentication makes you 99% less likely to be hacked.

Multifactor authentication requires at least two methods for verifying your identity when accessing an online account. For instance, your password might be coupled with a special code sent by text, your fingerprint or a scan of your face.

Learn more: How to Protect Yourself With Multifactor Authentication

9. Be Careful With Public Wi-Fi

These days, most public Wi-Fi networks are safe thanks to the widespread adoption of website encryption. To see whether a connection is encrypted, search for a lock icon and https:// in the address bar that appears in a browser.

Public Wi-Fi networks aren't foolproof, though. You still can become a victim of identity theft when logging on to public Wi-Fi. For instance, many public Wi-Fi hotspots are unencrypted, providing a gateway for stealing your information. When connecting to public Wi-Fi, consider using a trusted virtual private network (VPN), which encrypts an internet connection.

10. Limit What You Share on Social Media

Sharing information like your home address, email address or birthdate on social media can give a crook ammunition to commit identity theft. It's also wise to restrict who can see your profile and posts, which you can do by logging in to your settings. Consider making your accounts private unless you use them for business or networking.

11. Use a Privacy Screen

When using your laptop or tablet in a public setting, consider attaching a privacy screen. A privacy screen shields what appears on your screen from everyone else, perhaps preventing an attempt at identity theft.

12. Limit Your Exposure

Rather than carrying several credit cards in your wallet, purse or pocket, carry just one and leave the rest at home. Or, if you need access to more sources of credit, limit the number of credit cards you have with you. The fewer cards you carry around, the fewer opportunities a crook has to steal your identity.

How to Recognize the Signs of Identity Theft

You may be a victim of identity theft if:

• You receive bills for merchandise you didn't buy.
• You receive calls from debt collectors about accounts that you didn't authorize.
• You see information on your credit report for accounts that you didn't authorize.
• You get denied for credit applications.
• You notice that mail is missing from your mailbox or stops being delivered.

Knowing the most common types of identity theft can help you be alert to potential red flags.

Source: Federal Trade Commission Consumer Sentinel Network

What to Do if You're a Victim of Identity Theft

If you suspect you're the victim of identity theft, follow these five steps:

1. You have the right to place a free fraud alert on your credit report. When you set up an alert through Experian, for instance, the two other major credit reporting agencies (TransUnion and Equifax) will automatically be informed and place fraud alerts on those reports as well.
2. File a police report with your local law enforcement agency.
3. Monitor your credit reports to look for suspicious activity.
4. Reach out to companies, such as banks and credit card issuers, where you have accounts that you believe were involved in identity theft. Remember that you might need to cancel accounts jeopardized by identity theft.
5. Dispute transactions that you think are fraudulent. You have the right to do this with the three major credit reporting agencies.

Frequently Asked Questions

The Bottom Line

Identity theft can trigger a variety of financial problems. But you can protect yourself from being a victim of identity theft by guarding your personal and financial information and regularly reviewing your credit reports. To add a layer of protection, consider signing up for identity theft protection from Experian.