Understanding Identity Theft

Identity theft can happen very quickly. Unfortunately, fixing the damage often takes much longer. Thieves steal personal details in many ways. They may target debit cards, credit cards, or Social Security numbers.

With this information, criminals can damage your credit score. They may apply for loans, open accounts, or file false medical claims. The impact can be serious, but you can take steps to prevent identity theft and act fast if it happens.

How to Prevent Identity Theft

Monitor Your Bank Statements Regularly

Check your bank statements often. Look closely at charges and withdrawals. If you notice a suspicious transaction, report it immediately.

Early detection helps you freeze your account quickly. It may also help you recover stolen funds without closing the account.

Review Your Credit Reports Every Year

Check your credit reports at least once a year. Equifax, TransUnion, and Experian must provide one free report annually by law.

Review each report carefully. Look for unknown accounts or incorrect information. Spotting issues early can limit damage.

Use Credit Cards for Online Purchases

Use a credit card instead of a debit card online. Credit cards offer better fraud protection. They also do not link directly to your bank account.

If fraud occurs, you can dispute the charge more easily.

Protect Your Personal Information

Shred documents with personal details before throwing them away. Never carry your Social Security card in your wallet.

Be careful about what you share online. Change your passwords every few months. Use strong and unique passwords for each account.

What to Do If You Become a Victim

Stay Calm and Identify the Issue

If identity theft occurs, stay calm. Identify which account the thief accessed. Check whether the issue involves a debit card, credit card, or another account.

Contact your bank or card provider immediately. Report the charge and ask them to freeze the account.

Place a Fraud Alert on Your Credit Report

Contact one of the three major credit bureaus. Ask them to place a fraud alert on your credit file. The alert lasts for 90 days.

The credit bureau will also send you a free updated credit report. Review it carefully for suspicious activity.

File Official Reports

Report the theft to your local police department. You should also file a report with the Federal Trade Commission.

Make copies of all reports and documents. Store them safely for future reference.

Extra Steps for Serious Identity Theft

Large-scale identity theft may require more action. In some cases, you can request an extended fraud alert. This alert can remain active for up to seven years.

Stay cautious when using ATMs and gas pumps. If a card reader looks damaged or altered, report it to staff immediately.

When Identity Theft Leads to Debt

Identity theft can sometimes result in serious debt. If this happens, seek professional help. Contact trusted debt counselors to learn about options that may reduce or manage your debt.

Source:
The New York Times