As I mentioned in my prior blog, Identity Theft in Associations, theft of personally identifiable information (PII) is on the rise. Data breaches of major firms are in the news on a consistent basis. How do you protect your data without going off the grid and becoming a hermit? Here’s few basic steps to take to help protect yourself.
Safeguard your social security number
Your SSN is the golden fleece to identity thieves. With that, and common information readily available, a thief can open credit card or loan accounts, file a fraudulent tax return (for a refund, of course!), obtain government benefits, even get medical care. Of course, all these bills are sent to you!
Never carry your social security card with you. Don’t leave any paperwork in your car that contains your number or other sensitive information. Don’t give your number to just anyone who asks. Find out why they need it. Generally, only your employer, government agencies, and lenders have the right to ask for it. If they insist, ask what they need it for and how they will safeguard it. Walk away if you don’t get the right answer.
Be very careful with your Medicare card. Most still have your SSN printed on it. These will be phased out and replaced with other ID numbers, but in the meantime, make a copy, black out all but the last four on the copy, and write contact information on the back for an individual that can provide your SSN in the event of an emergency. Carry the copy with you, and leave the original at home. Take the actual card with you for scheduled doctor visits.
During tax season, submit your tax return as early as possible. Most fraudulent returns are filed early – after all, if you’ve already filed, the scammer can’t! Gather all your deduction data in December. Then, all you have left to do is add your yearend tax documents as they arrive in the mail.
Don’t fall for online or phone scams
Fraudsters often call or email pretending to be legitimate – they claim to be with your credit card company, your bank, even the IRS. If you are in any way unsure, don’t give out PII on the phone.
Look up their number yourself, and call back to ensure you are talking to the real deal. The IRS will never contact you by phone or email – they send letters via US Mail.
You’ve heard it before, but never click on a link or download a file from an email that is even slightly suspicious. If you didn’t request the email, don’t touch it. Doing so could infect your computer with malware or a virus. Malware could include ransomware, or the more sophisticated tracking software that logs your activity and gives the sender your logins and passwords.
Avoid putting any PII, such as your full name, address, or birthdate, on social media sites. You are just handing scammers information to help them unlock your passwords and security questions.
Use strong passwords
Another one you’ve heard a thousand times! Unfortunately, it’s necessary. Your passwords should contain letters, numbers, and special characters. They should be at least 10 characters long. And don’t use the same password for everything! If you do, a thief doesn’t just gain access to one of your accounts, but to all of them. Change your password frequently.
Sound impossible without writing them all down (and therefore defeating the purpose)? Consider using a password program, such as 1Password or LastPass. The software will remember all those various strong passwords, and you only need to remember one!
Invest in a shredder
Identity theft started with paper – from your mailbox or your trash! Consider a lock for your mailbox. At a minimum, shred any paper that contains your social security number, bank account or credit cards numbers, or other sensitive PII.
Protect your bank account
Fraudulent use of credit card and bank accounts is the most common, and generally most personally damaging, form of identity theft. Luckily, it is one of the easiest to resolve. The law limits your liability for unauthorized credit card purchases to only $50, and may credit card companies offer zero liability. Stolen debit card transaction liability can run $500 or more if you don’t report it promptly, but if you do, many banks also offer zero liability.
Even so, an empty bank account creates a flurry of cascading problems. Bounced checks lead to bounced check fees. You’ll need to close that account and open a new one. Most of us have many automatic payments – those will all need to be switched over to the new account.
If you are a disciplined spender, use your credit card and pay it off each month. This will limit your exposure, and build your credit score at the same time. When you use a card at an ATM or gas pump, check for skimming devices first. (Tug at the card slot – if anything shifts, don’t use the machine.) Always shield keypads when you type in PINs to block the view of hidden cameras or inquisitive eyes. Always review your statements for charges you don’t recognize, and report problems immediately.
Skip the snail mail
As mentioned above, ID thieves still get data the old-fashioned way, by rifling through your mail. At a minimum, get a locking mailbox. Drop off your outgoing mail at the post office, or in a postal drop box. To be safer, signup for e-bills instead, and pay them electronically. File your tax return electronically as well.
Freeze your credit
Freezing your credit puts a lock on your credit report. Lenders cannot access your credit history without your written signature. This helps stop fraudsters from opening “instant credit” accounts in your name. To place a freeze, just call one of the three credit bureaus, Equifax, Experian or TransUnion. You may have to pay a nominal fee (usually $5-$10) to both place and remove a freeze, depending on your state. If you are victim of theft, this service is generally free.
Secure your devices
Lock your cell phone’s home screen. Setup the capability to track your phone remotely and erase its data in case of theft. Password protect your personal PC or laptop too. Make sure your antivirus software is current, and auto-updates are turned on. Don’t ignore those annoying messages to update your software – follow through and update promptly. Those updates often contain security fixes. If you use your PC or laptop for banking or keep financial data on it, consider encrypting it using BitLocker or other encryption software.
These are simply, but effective, steps anyone can take to provide basic safeguards. A few seconds now could save a lot of dollars later.
