What Causes Identity Theft?

Although identity theft can take many different forms, they all entail the use of your personal data to perpetrate fraud. These are a few of the most typical reasons why people steal identities.

Data breaches: When cybercriminals obtain access to a business’s database that has personal data, including names, addresses, Social Security numbers, and credit card numbers, data breaches take place. Fraudulent actions, including applying for credit cards or loans in the victim’s name, are then carried out using this information.

Phishing and spoofing schemes are attempts to obtain personal information from people by posing as trustworthy organizations or entities, such banks, government agencies, or service providers. Usually, phone calls, texts, or emails are used in these scams. The thieves can utilize the information for identity theft once the victim gives it to them.

Hacked accounts: By breaking into a victim’s email, social media, online banking, or other accounts, identity thieves may be able to obtain their personal data. Once inside, the criminal may discover personal identification numbers (PINs), credit card information, passwords, and other information that they can utilize to perpetrate identity theft.

Compromised devices: Identity theft can also occur when a thief utilizes viruses, phony websites, unprotected public Wi-Fi networks, or other methods to obtain access to a victim’s computer or phone. Once inside, the criminal can use spyware or malware to track the victim’s movements and steal private data.

Identity theft can occur in a number of ways, these being just some. However, determined criminals might even take your personal information from a receipt you threw in the garbage or financial paperwork in your mailbox. Identity thieves may target any location or anything that has information about you, whether it be digital or physical.

Identity Theft Types

Financial Identity Theft: Any strategy that uses a false identity to steal money is considered financial identity theft.

The name of a victim may be used by criminals to:
Apply for a credit card.

1. Make a loan application.
2. Get into the victim’s bank accounts
3. Create a new bank account, which will subsequently be utilized for other fraudulent activities.
4. Get a refund by filing a tax return.

When victims receive a statement in the mail from a financial account they don’t know, they frequently realize that their identities have been stolen. Alternatively, they can get a letter from the IRS alerting them to a questionable return that was submitted under their name.

It’s critical to take prompt action to reduce your financial losses as soon as you learn that identity thieves have your information. You can freeze your credit and add a fraud warning to your credit reports to reduce credit fraud.

In the case of tax identity theft, you should report the possibility of identity theft to the IRS. You will be given an IP PIN every year after it has been established that you are a victim, which will be used to prove your identity on all upcoming returns. Additionally, you can always ask for an IP PIN.

Theft of Medical Identity

Using someone else’s information to get medical care or services is known as medical identity theft. This can involve filing an insurance claim under a false identity, getting prescription medications, or paying for treatment under someone else’s name.

Receiving an unidentified bill from a healthcare provider or being approached by an organization attempting to collect on medical debts for treatments they never got are common ways for people to learn that medical identity theft may have taken place.

Verifying your medical records with all relevant healthcare providers is the first step towards recovery if you have been the victim of medical identity theft. You have the right to appeal if one or more refuse to provide you access to your records. If you discover inaccurate information in your medical records, dispute it in writing with the provider and ask that it be deleted.

Identity Theft Online

The FBI’s 2022 Internet Crime Report states that damages from cybercrime increased from $6.9 billion in 2021 to an all-time high of $10.2 billion in 2022. According to the number of victims, spoofing, identity theft, and phishing were among the top ten most prevalent crime types.

Always confirm senders before clicking on email links, enable two-factor or biometric authentication on your accounts whenever you can, and think about utilizing cybersecurity tools like antivirus software and a virtual private network (VPN) to safeguard your devices and online privacy in order to prevent online identity theft. Sharing information on social media that can be helpful to an identity thief should also raise red flags.

How to Choose a Monitoring Service for Identity Theft

Because the businesses in this category all offer the same fundamental services, it’s easy to get overwhelmed by the variety of identity theft protection alternatives available. To determine which benefits you need most, it’s important to review the characteristics that stand out among the various ID theft plans.

These suggestions may be useful if you’re having trouble deciding which identity theft protection company to entrust with your identity.

Seek out options that provide insurance against identity theft. If you are a victim of identity theft, identity theft insurance is a last resort that can shield you from monetary losses. In light of this, we limited our rating to businesses who offer ID theft insurance. Make sure any plan you’re thinking about has enough identity theft insurance to satisfy your needs because some offer lower levels of coverage. $1 million in insurance coverage per plan is the gold standard.

Look for credit monitoring from three bureaus. Additionally, be sure that all three major credit agencies are being monitored, and be aware that basic plans might only cover one bureau. It is best to have a plan that keeps an eye on all three of your credit reports because fraud may not appear on all of them at once.

Determine whether you require a family plan that offers protection for children or an individual plan. Family plans with unique features to safeguard children’s identity are offered by some providers but not by others. You should think about including your kids in your identity theft protection strategy if you have any.

If you just make a payment once a year, compare prices and search for savings. Verify the monthly affordability of any plan you are considering by comparing prices. Additionally, look for savings on yearly or autopay installments. If you pay for the first year in advance, many suppliers do provide you a discount of some kind.

Think about businesses that provide a free trial. Try a supplier that provides a free trial if you’re still unsure. This will allow you to test out a plan’s features and determine whether the monthly cost is worthwhile. You have the option to terminate a paid identity theft protection plan before the free trial period expires if you choose not to proceed.