Identity theft is a serious issue in this modern digital era. In fact, just last week it was reported that 2.7 billion records of personal data were leaked online by hackers. With cybercriminals growing bolder and more successful, knowing the most common identity theft scams and how to protect yourself and your members is critical.
Here are seven common identity theft scams along with tips on avoiding them for you to be aware of so you can share with your members.
1. Phishing Scams
What It Is: Phishing scams try to steal your personal information by pretending to be a legitimate company. They usually target passwords or credit card numbers. Scammers often send emails, texts, or messages that look like they’re from trusted sources. They typically imitate banks or online retailers and ask you to click a link or download something.
How to Avoid It: Be cautious of unexpected emails or messages asking for personal details.
- Verify the sender’s email address
- Don’t click on links or download attachments from unknown sources
- Use multi-factor authentication (MFA) on your accounts when possible
2. Social Media Scams
What It Is: Scammers use social media to gather personal information they can use for identity theft. They use fake profiles or offer fake promotions to trick you into sharing sensitive details.
How to Avoid It: Be careful about what you share on social media, especially personal details like your full name, birthdate, and address. Set your profiles to private, and only connect with people you know. Avoid clicking on suspicious links or participating in unknown promotions.
3. Tax Identity Theft
What It Is: Tax identity theft happens when someone uses your Social Security number (SSN) to file a fake tax return and claim a refund in your name. Many victims discover this when they try to file their taxes and find out a return has already been filed.
How to Avoid It: File your taxes early to reduce the chance of someone else filing in your name. Keep your SSN secure and only provide it when necessary. For added security, consider getting an Identity Protection PIN (IP PIN) from the IRS.
4. Credit Card Skimming
What It Is: Credit card skimming involves using a small device to steal your credit or debit card information when you swipe. They're often found at ATMs, gas stations, or other terminals.
How to Avoid It: Check card readers for tampering before using them. Use ATMs inside banks, as they’re less likely to have skimmers. Consider contactless payment methods or a mobile payment app to avoid swiping your card.
5. Mail Theft
What It Is: Mail theft involves stealing your mail to obtain personal information, such as bank statements, credit card offers, or tax documents. Thieves can use this information to open accounts or take out loans in your name.
How to Avoid It: Choose paperless statements and bills to reduce the amount of sensitive information sent to your mailbox. Use a locked mailbox or have your mail held at the post office when you’re away. Shred documents containing personal information before throwing them out.
6. Medical Identity Theft
What It Is: Medical identity theft involves someone using your personal information for medical services, prescription drugs, or health insurance benefits. This can lead to incorrect medical records and affect your ability to get proper care.
While medical identity theft is less common than other forms of identity theft, the costs to those affected can be much higher. Data has shown the average cost to victims ranges from $13,500 to over $22,000.
How to Avoid It:
- Review your medical bills and Explanation of Benefits (EOB) statements for any services you didn’t receive
- Keep your health insurance information and medical records secure
- Only share them with trusted healthcare providers
- Report any issues to your health insurance company immediately
7. Data Breaches
What It Is: A data breach occurs when unauthorized individuals access or steal sensitive information. Social Security numbers or credit card details are the most common. These breaches often target large organizations but can result from poor security practices or internal errors.
How to Avoid It: While you can’t control how companies protect your data, you can take steps to protect yourself:
- Regularly check your financial statements for unusual activity
- Use strong, unique passwords with a password manager
- Enable two-factor authentication (2FA)
If your data is compromised, consider placing a fraud alert or credit freeze on your accounts. You can also sign up for breach notifications so you can act quickly if your information is exposed.
The Takeaway
Identity theft can have lasting effects on your financial and personal well-being. By staying informed about common scams and protecting your information, you can reduce the risk of becoming a victim. Stay vigilant, skeptical, and proactive in safeguarding your personal information both online and offline.
Share this article with your members to help them protect their identity from thieves.
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