In 2021 alone, $24 billion were lost and 15 million U.S. consumers were impacted due to traditional identity fraud losses - information was stolen without any direct interaction with the consumer- resulting use of a consumer’s personal information to achieve illegal financial gain, according to a Javelin Strategy and Research study released in 2022. The same study found that losses from identity fraud scams - involving direct contact between the criminal and the victim - totaled $28 billion and affected 27 million consumers in the United States. It’s a growing problem that has expanded in new ways since the onset of the COVID-19 pandemic, which prompted wide changes in digital behaviors.
Take steps to protect yourself.
- Take the following actions to help prevent identity fraud:
- Store all financial documents in a secure location.
- Shred outdated or unnecessary financial documents
after using them. - Adopt a “Zero Trust” contact policy. This means never
trust, always verify. - Use a digital wallet on your cell phone or tablet to
manage in-store and online payments. - Use two-factor authentication wherever possible AND never share one-time passwords via text or phone call.
- For sites without two-factor authentication, use strong passwords or a password manager to secure them.
- Secure computer and mobile devices by using a screen lock, data encryption, and install anti-malware. (Antimalware protection is essential for all devices). Avoid
using public WiFi whenever possible. - Place a security freeze on credit reports - A freeze on your credit reports helps prevent others from opening one in your name and there is no cost. If you need to open an account requiring a credit inquiry, the freeze can be lifted.
- Sign up for alerts on all of your accounts - Many financial service providers, including banks, credit card issuers and brokerages, offer alert notifications of suspicious account activity - as do businesses in other industries, such as email and social media providers.
TIP: Keep your cellphone number current with your service providers so you receive alerts!
If you suspect identity theft, act immediately.
- Contact your bank or financial service provider.
- Start fresh with new payment card numbers, user logins and passwords. Choose user logins and passwords that are not specific to your name or personal information.
- Passwords should be complex and have a minimum of 8 characters.
- Place a “Fraud Alert” on your credit report and review the report carefully. The three nationwide consumer reporting agencies have toll-free numbers: Equifax: (800) 349-9960, Experian: (888) 397-3742, TransUnion: (888) 909-8872.
- Close any accounts that have been established without your knowledge. Follow up in writing with the financial institution that holds the account and with the credit bureaus.
- File a report with local law enforcement officials to help you with creditors who may want proof of the crime.
- Keep records of your conversations and any documents including written communication with law enforcement or creditors stating your case.
- Ask for verification that the disputed account has been closed and the fraudulent debts have been discharged.
- Report the theft to the Federal Trade Commission to help law enforcement officials in their investigations. Online at www.ftc.gov/idtheft or Call at 1-800-ID-THEFT (1-800-438-4338)
- Contact Your State’s Attorney General’s Office at www.oag.ca.gov/idtheft
- For additional information about internet crimes, visit the FBI’s Internet Crime Complaint Center at www.IC3.gov
*Javelin Strategy and Research study released in 2022.
For additional information, visit our Security & Fraud Prevention Resources.