Identity Theft Awareness Week

In today’s interconnected digital world, protecting your information is more important than ever. According to the Federal Trade Commission (FTC), the number of fraud complaints increased by 1.3% in 2023, with more than 2.6 million reports. In addition, the total financial losses associated with fraud increased by almost 16% in 2023, totaling $10.3 billion.¹

The FTC recognizes Identity Theft Awareness Month every year to help educate people about the risk of identity theft. Let’s learn more about this week and share some preventative steps you can take to safeguard your personal information.

What Is Identity Theft Awareness Week?

Identity Theft Awareness Week is a national campaign designed to provide resources, tips, and guidance on preventing identity theft and recovering if you become a victim.² Because we use so many digital platforms for banking, shopping, and communication, identity thieves have more opportunities than ever to exploit vulnerabilities. Identity theft can occur in several ways, from hacking into online accounts to physically stealing documents. Once criminals access your information, they can open fraudulent accounts, apply for loans, or commit crimes under your name. The impact can be devastating, resulting in financial losses, damaged credit, and immense stress for victims.

Identity Theft Awareness Week empowers individuals to recognize these risks and take proactive steps to reduce their chances of becoming victims. Education and awareness are key components of protection, and Identity Theft Awareness Week provides a platform for individuals, businesses, and communities to come together and share valuable identity protection insights.

Types of Identity Theft

Understanding the various forms of identity theft is essential for protecting yourself. Here are some common types:

Financial Identity Theft

Financial identity theft is likely the most well-known form of identity theft. Criminals use your personal information to access your bank accounts, open new lines of credit, or take out loans.

Medical Identity Theft

With medical identity theft, criminals steal your information to receive medical treatment or prescriptions, leaving you with medical bills and inaccurate health records.

Tax Identity Theft

With tax identity theft, thieves file false tax returns using your Social Security number to claim refunds fraudulently.

Criminal Identity Theft

When someone gives their name and personal details to law enforcement during an arrest or investigation, this is called criminal identity theft. It can lead to wrongful criminal charges against them.

These types of fraud can have long-lasting effects on your financial stability and personal life; therefore, it is crucial to understand how to protect yourself and your information.

Practical Tips to Prevent Identity Theft

Identity Theft Awareness Week raises awareness of the importance of protecting yourself from identity theft. Here are some tips to help prevent these crimes:

Monitor Your Accounts: Regularly check your bank and credit card statements for suspicious activity. Setting up alerts for large or unexpected transactions can help catch fraud early.
Shred Important Documents: Paper documents like bank statements, medical records, and tax forms contain sensitive information. Shredding them before discarding them can prevent dumpster-diving thieves from accessing your data.
Use Strong Passwords: A secure password is your first line of defense against hackers. Use a combination of letters, numbers, and symbols, and avoid using the same password across multiple platforms.
Enable Two-Factor Authentication: Adding an extra layer of security to your online accounts can significantly reduce the risk of unauthorized access. Two-factor authentication requires a second form of verification, such as a code sent to your phone, making it harder for hackers to gain entry.
Be Cautious When Using Public Wi-Fi: Avoid accessing personal accounts or entering sensitive information when connected to public Wi-Fi networks, as these are prime targets for cybercriminals.
Freeze Your Credit: If you’re not planning to apply for credit anytime soon, consider freezing your credit reports with the major credit bureaus. This prevents anyone from opening new accounts in your name without your consent.

What to Do If You Are a Victim of Identity Theft

Despite our best efforts, identity theft can still happen. If you suspect your identity has been stolen, take immediate action by following these steps:

Contact your financial institutions. If you notice suspicious activity, alert your bank or credit card issuer, and consider freezing your accounts if necessary.
Report to the authorities. File a report with the FTC through their IdentityTheft.gov website.³ This will help you create a recovery plan and provide documentation for disputing fraudulent charges.
Notify the major credit bureaus (Experian, Equifax, and TransUnion) to place fraud alerts on your accounts. This can make it harder for thieves to open a new credit in your name.
Monitor your credit report. Keep an eye out for any unauthorized accounts or changes. You’re entitled to one free report annually from each major credit bureau.

Identity Theft Awareness Week is a timely reminder to protect personal information. You can safeguard your identity and financial future by understanding the risks, implementing protective measures, and knowing what to do in case of theft.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.