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Identity theft, as well as other types of fraud, are far too common. In fact, more than 230,000 reports of identity theft were received by the Federal Trade Commission (FTC) in the fourth quarter of 2023 alone. But as with any type of fraud, you can protect yourself by understanding hacker’s methods and the ways in which you can protect yourself and your personal data.

What is Identity Theft?

Identity theft is the act of someone stealing your personal identifying information for their own gain. The culprit’s motives are often driven by financial purposes, but there could certainly be other angles to identity theft. In cases of financial identity theft, your passwords, account numbers, PIN, Social Security number, and other information that is unique to you (and only you) is what they will be trying to steal.

Once the hacker has your information, they’ll likely make fraudulent purchases, transfer money out of your accounts, or even sell your information to other cybercriminals. The actions a criminal will take often depend on the types of information they steal. For instance, your email or phone number may become part of a phishing attack, while your credit card details could be used to make unsolicited purchases.

Types of Identity Theft

Just as we have lots of personal information to our names, so too are there several types of identity theft. Here are some of the most common types of identity theft:

• Financial Identity Theft: With Financial Identity Theft, a hacker will most likely seek out your credit card information, PIN, or other bank account details to make unauthorized purchases or transfer funds to a separate account without your knowledge.
• Medical Identity Theft: In cases of Medical Identity Theft, a thief may steal personal medical information for the purpose of filing a false insurance claim, among other reasons.
• Tax Identity Theft: Your Social Security number is often what is stolen in instances of Tax Identity Theft. The thief will use this information to file a fraudulent tax return in order to claim a refund. In some cases, the victim may not even realize they’re a victim of tax identity theft until filing their own tax return.
• Social Security Identity Theft: Loans, checking and savings accounts, and even jobs are all areas where your Social Security number is needed. A thief can try and apply for these things once they’ve stolen your Social Security number.

How Does Identity Theft Happen?

While identity theft itself is a type of fraud, it’s often achieved through other types of fraud, namely social engineering. Phishing is one of the most common ways identity theft occurs. Hackers employ phishing by sending emails, texts, or other messages to targeted individuals that appear to come from a legitimate source.

Common signs of a phishing attack include: poor grammar or spelling in the communication, a suspicious link or attachment, and urgent requests for personal information. Also, while the name of the sender may appear to be someone you know or are familiar with, take a second look at the email address. Oftentimes, the email will not actually be tied to the sender you know.

Phishing attacks are incredibly common in today’s technological age, but identity theft can happen in other ways too. Mail theft and skimming are two other common ways identity theft occurs. If you ever suspect you’ve become a victim of skimming at either an ATM or gas station pump, contact your financial institution immediately.

Common Signs You've Become a Victim of Identity Theft

Fortunately, there are some common tells you can recognize as indicators that you’ve become a victim of identity theft. Some of the most common signs include:

• Unauthorized charges on your account(s)
• Significant, unexplained changes to your credit report
• Receipt of bills for accounts or loans you aren't aware of
• Being denied credit
• Being locked out or suspended from your account(s)

Be sure to review your monthly credit card statements and bills regularly so you can spot any unauthorized purchases or charges. Also, make a habit of checking your bank accounts regularly to spot these signs of identity theft before it’s too late.

What to Do If You Become a Victim of Identity Theft

You’ll want to act quickly as soon as you suspect you’ve become a victim of identity theft. Here are the steps you should follow:

1. Contact one of the three credit reporting agencies and place a fraud alert on your credit report. Either Equifax, Experian, or TransUnion will be able to place this fraud alert for you. This warning will prevent the thief from opening new accounts with your name and information.
   
   Remember, you only need to contact one of the credit reporting agencies, as the one you contact is responsible for notifying the other two. You also are entitled to your free credit report, which you can ask for and review once in your possession to monitor for errors or fraudulent charges.
2. Close out your compromised accounts, or any that you believe were opened fraudulently. Talk with a representative in the security or fraud department of the companies in which you have your accounts and let them know of your situation.
3. Report the identity theft to the FTC. From here, the FTC will enter your report into the Identity Theft Data Clearinghouse, a database which assists law enforcement in cases of identity theft.
4. File a police report. When you speak with the police, have a copy of your Identity Theft Complaint Form, which you can receive from the FTC. This will aid them as they investigate your case.

While these steps may seem intimidating, they are vital to helping you reclaim your identity and assets. Each of these agencies is experienced and willing to help you in matters of identity theft.

Ways to Protect Yourself from Identity Theft

Prevention is crucial when it comes to avoiding identity theft. Knowing the steps you can take to avoid hackers and thieves accessing your personal information will save you from hassles and headaches down the road. Here are some ways to prevent identity theft:

• Use strong passwords. Create passwords that are at least twelve characters long and use a combination of capital and lowercase letters, numbers, and symbols. Also, have unique passwords for each of your accounts and applications.
• Consider using a password locker or similar application to store your passwords. Tools such as Keeper, 1Password, and Dashlane can help in both generating passwords and securely storing them for you.
• Look out for suspicious communications. Know how your financial institutions and other account-bearing organizations will notify you. If you do receive any suspicious calls, texts, or emails, report them to the specific organization immediately, and do not click on any links or attachments within them.
• Set up account monitoring and alerts. Be notified in real time whenever a transaction is made through one of your accounts, or if there is suspicious activity.

At American Heritage, you can set up eAlerts through your Online or Mobile Teller account. Within Online Teller, simply click on the “eAlerts” tab. If you’re using Mobile Teller, click the “Member Service” tab, and then “eAlerts.”

We are also proud to offer an Identity Protection Identity Protection checking account account for our members. This account comes with added Identity Theft Support Service and monitoring of your Social Security number. As with all our checking options, you’ll still earn dividends on your funds alongside the added security protection.