The holiday season is in full swing with local and online purchases in high gear. This brings an increased risk of ID theft through the swipes of our credit/debit cards, fraudulent delivery related text and emails, and information we're sharing online. For these reasons alone, it's not surprising that December has been chosen as the National Identity Theft Prevention and Awareness Month.
ID theft remains by far the highest type of fraud that has been reported by consumers to BBB and other agencies whose data is compiled in the Federal Trade Commission's Consumer Sentinel. In fact, Georgia ranked No. 1 for ID theft cases reported in relation to population size in 2021, with 150,898 cases. Tennessee wasn't far behind, holding the 9th highest spot with 79,012 cases reported.
ID thieves are constantly looking at ways they can steal your information and your money. They have many techniques to collect personally identifiable information (PII). Once they gain enough information, they can effectively become you, using your identity to open accounts, file taxes, or obtain medical coverage. Unfortunately, there's also many technologies available to help these thieves gather and utilize our payment information, both at point-of-sale devices in stores and by compromising our online activity.
How identity theft scams work
How do people steal your identity? With enough personal information, a scammer can pretend to be you and commit a wide range of crimes. They can make false applications for loans and credit cards, purchase goods with stolen payment information, withdraw money from your bank account, or obtain services in your name. They can also sell your information to others on the internet.
Identity theft may take a long time to detect. Scammers typically ensure that bills and statements for new accounts are not sent to your address. You may not notice what is happening until the scammer has already inflicted substantial damage on your assets, credit, and reputation.
Protect yourself against this scam
Be careful with your personal information. Treat your personal information like the valuable commodity it is. Make sure you shred documents containing your bank account information, Social Security/Social Insurance number, or other personal information. These include credit card applications, insurance forms, financial statements, health forms and billing statements from utilities and phone service. Cut up expired credit and debit cards and cut through the numbers before you dispose of them.
Secure personal documents at home. If you have roommates, employ outside help, or have contractors in your home, make certain personal documents are in a safe place – preferably under lock and key – and not lying out in plain sight. Minimize personal information on checks. You don't need to include your Social Security number, driver's license, or phone number.
Be alert to phishing attempts. Scammers are sophisticated; their phishing attempts may come via email, text, social media messages, or even phone calls. Be suspicious of any unsolicited communication asking you for personal information. Whether it's a supposed tech support call, an offer for a free cruise, or a charity plea, they may really be after your personal information. Bogus text messages regarding holiday delivery or claims that your credit card has been frozen have spiked in recent months. Click here for BBB's tips on Phishing and Tech Support Scams.
Protect yourself against hackers
To help protect your identity against hackers, BBB recommends:
* Use strong passwords or passphrases. Avoid using your birth date, child's name or birth date, mother's maiden name, the last four digits of your Social Security number, or really obvious ones like "123456" or "password."
* Change your passwords frequently.
* Use different passwords for each online account or website.
* Be careful about the types of information you share online, especially if it is information that could be used to get past security questions on your accounts (things like your first car, first pet's name, city where you were born)
* Shred outdated documents with personal information. While you should keep your tax returns forever, you should shred supporting documents for your tax returns after seven years.
* Look for unexplained withdrawals, charges, and accounts. Review your bank account and credit card statements regularly. Look for unfamiliar charges, accounts, or withdrawals. Know when your bills are due; one tip-off for identity theft is when you stop receiving certain bills. This can happen because scammers have changed the address associated with your bank account or credit card. If bills don't arrive on time, follow up with your creditors. Debt collectors may call you about debts that aren't yours. You can also set up automatic alerts on your accounts, so you are notified every time a transaction is made.
* Check your credit reports regularly for unauthorized inquiries and accounts. You have the right to check your credit report for free with each of the three major credit bureaus at AnnualCreditReport.com. This is typically offered at no cost once a year (twice a year for Georgians); however, in recognition of the increase in scams since COVID, each report is currently available for weekly access at no charge. This site is the only free crediting reporting service authorized by the Federal Trade Commission.
If you believe you are a victim of identity theft, it is essential to act quickly. Contact local law enforcement and visit identitytheft.gov for information on how to stop and recover from identity theft.
If a company you do business with has experienced a data breach, BBB has information on what to do after a data breach and what to do if your credit or debit card is compromised. Also, see how to protect your identity from a data breach.
Please also share your experience with related scams on BBB Scam Tracker.
Michele Mason is president of the Better Business Bureau in Chattanooga.