How to Prevent Identity Theft Online – and Off
7 Min Read | Last updated: October 14, 2024
Identity theft can be a costly hassle that affects up to 1 in 3 Americans. Here are 7 common identity theft techniques and related tips to help protect you from each.
At-A-Glance
- Identity theft doesn’t just take place via the Internet. ID thieves use numerous offline methods as well.
- There are many ways to protect yourself both online and off, but the most important is to never give out your personal info unless you know exactly whom you’re sharing it with and why.
- Taking precautions to safeguard your identity can sometimes feel like a hassle, but it’s worth the effort since the consequences of having your identity stolen can be severe.
People tend to think of identity theft as something that takes place online. Unfortunately, the internet is not the only place where identity theft occurs. The Federal Trade Commission received more than 1 million reports of identity theft in 20231 To help prevent it, here are seven common methods con artists use to steal personal information for their own ends — and what you can do to foil them.
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1. Email Phishing
Because email is so ubiquitous, identity thieves use email “phishing” techniques to try and steal their victims’ personal data. Phishing can take a variety of forms, but in them all thieves essentially rely on using a bogus email to get the intended recipient to either 1) share personal data like a Social Security number or credit card number or 2) open an attachment so the scammer can embed some spyware onto their system.
Another common ploy is for criminals to use an official looking email that appears to be from a company or government agency that you regularly do business with. The thief’s goal is to try and trick you into visiting a counterfeit website where you will either be asked to complete a form by entering some sensitive information or induced to click on a link that downloads a file onto your computer.2 The file typically may contain malware that swindlers can use to intercept your passwords and personal data — providing an opportunity to steal your identity.
Ways to help prevent identity theft from phishing attacks:
- Don't provide personal information in an email unless you’re 100% certain who it’s going to and that they absolutely need it. This is especially true for your Social Security number.
- Don’t open email attachments unless you’re certain they come from a source that you trust.
- Don’t fill out forms or download files from a website unless you visited the site directly by typing in the web address yourself.
2. Wi-Fi Piracy
Information sent over Wi-Fi may be intercepted. Thieves monitor your signal and then try and guess your password. If they get into your network, they can lift any information you send — including personal information that can be used to steal your identity.3
Ways to help prevent identity theft from Wi-Fi interception:3
- To block would-be interceptors, use a router firewall.
- Use long passwords with lots of capital letters, special characters, and numbers that a thief will have difficulty guessing. Change your passwords if a company that you do business with experiences a data breach.
- Ensure your router is updated. This way you have a barrier to protect against malware and hackers.
3. Credit Card Skimming
Thieves can place a small, inconspicuous device on ATMs and other credit card processing machines to capture your credit card number and personal identifying information during a transaction. They may use the information to open new credit card accounts in your name, or simply charge purchases to your card.4
Ways to help prevent identity theft from credit card skimming:
- Check for a skimming device whenever you swipe your card. A credit card reader that looks different from others is a tell-tale sign, since skimmers are designed to fit over the standard card reader.
- Cover your hand whenever you type your PIN to prevent tiny hidden cameras from recording it.
- Check your credit card bills and account statements carefully and often for any suspicious activity.
Did you know?
As an added security measure to help protect against fraud, American Express reports a reference number to credit bureaus – instead of your actual account number.
4. Dumpster Diving
In the digital age, dumpster diving may seem a bit quaint. But dumpster divers sort through trash to piece together names and addresses, bank names, account numbers, and other bits of sensitive personal information. Criminals may then use this information to open new accounts in your name or even assume your identity in entirety.
Ways to prevent dumpster divers from stealing your identity:5
- There’s really just this: Shred receipts, credit offers, account statements, and expired credit cards. This can thwart any attempts to use them to steal your personal information.
5. (Snail) Mail Theft
Your mail may be another treasure trove of personal information for would-be ID thieves. They also may be able to take advantage of offers you receive — like an invitation to open a pre-approved credit card. With this method, the identity snatcher opens the account in your name, and you might not find out until you get your first bill.
Ways to prevent identity theft from stolen mail:6
- Secure your mailbox with a lock.
- Collect your mail daily and place a hold on your mail when you are away from home for more than a couple of days.
6. Telephone Cons
Some identity thieves specialize in sweet-talking victims into giving out information over the phone. Or they might try to scare you into answering their questions by pretending to be from an official agency, such as the IRS or the police. This is called vishing.
Other con artists try to talk their way around the safeguards that retailers, banks, and other financial institutions use to verify a caller’s identity. Then they are free to change the address on your accounts, apply for new accounts, or even get a replacement driver’s license — by pretending to be you.
Ways to prevent identity theft from telephone cons:7
- Don’t drop your guard. Never give out personal information over the phone unless you’re certain who it is.
- Your mobile phone has security features for access, like requiring a passcode or facial recognition. It’s a good idea to use these features.
- Freeze your credit files with Equifax, Experian, TransUnion and the National Consumer Telecommunications and Utilities Exchange. This can be done for free and prevents someone from opening a new account in your name.
7. Plain Old Robbery/Burglary
Less imaginative thieves may snatch your purse, grab your wallet, or break into a file cabinet in your home to get what they need to assume your identity.
Ways to prevent identity theft by robbery/burglary:8
- Don't carry your Social Security card in your wallet.
- Don’t write down your PINs and passwords and then carry them on your person.
- Don’t keep all of your identifying information in a single place. Distribute it among several different locations.
If all these precautions seem like a lot of effort, consider this: The latest statistics from the Department of Justice indicate that people lose more than $16 billion due to identity theft.
The Takeaway
Millions of Americans have been affected by identity theft, which can be costly to repair. The safety measures detailed above can go a long way toward ensuring that you don’t become the latest victim of identity theft — either online or off.
1 “As Nationwide Fraud Losses Top $10 Billion in 2023, FTC Steps Up Efforts to Protect the Public,” Federal Trade Commission
2 “How to Recognize and Avoid Phishing Scams,” Federal Trade Commission
3 “How To Secure Your Home Wi-Fi Network,” Federal Trade Commission
4 “Skimming,” FBI
5 “Identity Theft Preventative Measures Checklist,” Pennsylvania Attorney General
6 “Identity Theft,” USPS
7 “Vishing and Smishing: What You Need to Know,” Center for Internet Security
8 “10 Worst Things to Keep in Your Wallet,” Kiplinger
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