Identity Theft: Key Points and Prevention (Transcript Notes)

Introduction to Identity Theft

  • What is Identity Theft?

    • Identity theft is what happens when someone misuses your personal information for their personal gain.

    • They can use your:

    • Name and ID

    • Social security number

    • Checking account number

    • Passwords

    • Signature

    • Picture

    • Fingerprints

    • Identity thieves take your important information and use it to impersonate you

  • Why Steal an Identity?

    • There are many ways an identity thief can use your information for their own benefit

    • Dishonest people will use your name and information to:

    • Open credit cards in your name

    • Secure loans in your name

    • Receive medical care in your name if they don’t have insurance

    • Steal your tax refund

    • Reroute your Social Security, Medicaid, or SNAP benefits to themselves

    • Get back at you for some real or imagined thing you did to them

  • Why Does it Matter? Why is Identity Theft a Problem?

Impacts and Warning Signs

  • It might not be a big deal to you right now, but identity theft can cause you all kinds of issues in the future.

  • It can impact your family and future plans.

  • It can take years and cost hundreds of dollars to clear up false debts and recover your financial stability.

  • Problems caused by ID theft can include:

    • A ruined credit score

    • Being denied a loan or mortgage

    • Being sued for not paying for things you did not buy or bills you did not incur

    • Large fees from the government for back taxes

    • Being arrested for not paying tickets, showing up for court cases

    • The stress and anxiety related to identity theft can cause depression, sleep problems, anxiety, and panic attacks

  • The Warning Signs

    • Many people can go for months or years without ever knowing their identity has been stolen and used for fraudulent purposes.

    • Things that should raise a red flag for you include:

    • You get bills for things you know you did not buy. Check your credit card statements carefully.

    • Debt collectors are calling you for accounts you don’t know about.

    • You get turned down for loans because of unpaid bills or high balances on credit cards.

    • Mail is missing that you were expecting.

    • There are extra accounts on your credit report.

    • If you are not watching for signs of identity theft, you could find out you’ve been a victim at the worst time

Protection: Online Identity Theft

  • Ways to Protect Yourself

    • You can protect yourself from identity theft by being wise and cautious.

    • Things that take extra time and effort to use, such as pass codes, strong passwords, fingerprint authentication, retina recognition or Two-factor Authentication, can be annoying and slow down your shopping or web surfing but it is worth the trouble to keep you, your money, and your family safe.

    • Be aware of ways that your personal information can be stolen online, such as by opening strange emails

  • Preventing Online Identity Theft

    • Review ways that you can prevent your identity from being stolen online below.

    • Use strong passwords. You will not be able to remember them but no one else can guess them either.

    • Use a password manager. There are apps available that will store your passwords for different accounts and websites.

    • Do not click on suspicious posts on social media, including direct messages from people you do not know.

    • Do not open emails from people or addresses you don’t know.

    • Use 2 Factor Identification if it is offered. This will let you log-in to your account but then you must answer a text, email, or phone call to get any further.

    • Protect your passwords for everything! Do not keep a list on your phone or computer that is titled Passwords. Try not to use the same password on everything.

  • Other Ways to Prevent Identity Theft

    • There are ways to protect your identity offline, as well. You can do the following things to help keep your information safe:

    • Do not give out personal information over the phone

    • Look out for scammers (people who commit fraud, or participate in a dishonest scheme), they are very tricky or persuasive

    • Most people do not answer their phone if they don’t recognize the number. Many phones will now alert you with a message 'Scam Alert' or 'Suspected Scam.'

    • Shred sensitive documents, such as bank or credit card statements, or documents with your social security number on them

    • Check your credit reports monthly or pay a service to do it. Look for inaccurate reports, unknown accounts, judgements, or liens on your property.