Identity theft is a very real threat in the digital age. While it once was complicated for criminals to collect personal data, such as identification numbers, emails, phone numbers, and more, the connectivity the internet offers can sometimes make stealing information as easy as clicking a button.
In 2024, the Federal Trade Commission fielded more than 1.1 million reports of identity theft. Credit card fraud was the most common crime. Also, 2024 saw the largest data breaches in history, impacting billions of users and subjecting customers to the potential of having personal data exposed and ultimately exploited.
Although there is no foolproof way to keep personal and financial data safe, people can take several steps to safeguard their information.
Use strong, unique passwords. Have several different and complex passwords for each online account to prevent a compromised password from providing access to all of the accounts. People can use a password manager to help create and store these unique passwords. The U.S. Cybersecurity & Infrastructure Security Agency says that strong passwords should be at least 16 characters; feature a random string of mixed-case letters, numbers and symbols; or comprised of a memorable phrase of four to seven unrelated words, known as a passphrase.
Use two-factor authentication. Enable two-factor authentication (2FA) on all accounts to add an extra layer of security. This second form of verification often comes by the way of a texted or emailed code that must be entered to log into an account.
Consider extra security for your credit report. Individuals can contact the three major credit bureaus and bolster their credit-related security. A fraud alert tells businesses to check with the person before opening a new account to verify if it is really him or her. An initial fraud alert or active duty fraud alert expires in a year, while an extended fraud alert lasts seven years, but requires an FTC identity theft report. A credit freeze is a greater measure of security that keeps others from getting into the credit report at all (with a fraud alert the credit report can still be accessed). That means no one can open a new credit account while the freeze is in place. It must be lifted each time a person wants to open a new account.
Protect your identification numbers. Individuals should not carry a Social Security card in a wallet or give out their Social Security Number unnecessarily.
Exercise caution on the phone and when answering emails. Scammers can mislead others by using seemingly legitimate phone numbers or email addresses to solicit information.
Regularly check accounts. People should double-check all financial accounts periodically for suspicious transactions. Each year individuals are able to request and check a free credit report from Experian, TransUnion and Equifax.
Use a secured internet connection. To reduce the risk of data being stolen, only review financial information when utilizing a secured (password locked) internet network.
Taking strides to protect personal data is important to safeguard one’s financial security.
