Identity theft occurs when someone takes your sensitive personal data or uses it to pretend to be you. It's a growing problem in the U.S. as bad actors are increasingly using computers to obtain others' personal information. Every day, you use this information to access your:
Although encryption generally protects this data, it is not immune to the threat of identity theft. This means your personal information — and, therefore, your identity — can be appropriated and used by thieves for their financial gain.
Identity theft can cause loss of financial assets, ruin your credit, and be a significant drain on your time and resources. Therefore, preventing it should be a priority for dentists and physicians.
Keep reading to learn how to reduce the chances you will be a target, recognize warning signs, and take immediate action to lessen harm.
The U.S. Government defines identity theft as “when someone steals your personal information to commit fraud.” Personal data may include your Social Security number, bank account number, and credit card information.
Identity thieves, in turn, may use this information to:
Because data breaches have become a more regular occurrence, your sensitive information may already be exposed. This makes it critical to take steps to deter bad actors from using your personal data and draining your finances.
It's unlikely that you will find a foolproof way to thwart identity theft entirely. Plus, monitoring services can only let you know if something goes wrong.
Instead, consider the following best practices that will help you prevent the theft of your identity.
Say you freeze your credit with all three major credit bureaus: Equifax, Experian, and TransUnion. This prevents new credit files from being opened in your name.
There is no cost to freeze your credit. Also, you can unfreeze it when you want to open a new account or purchase a home or vehicle. This action provides the utmost protection against an identity thief using your information to open a new account.
Your Social Security number is most useful to thieves when cloning your identity. You can reduce the risk of having your social security number stolen by:
One of the easiest ways for thieves to take your identity is by stealing your mail. For instance, bad actors can take bank, investment, or credit card statements, utility bills, health care bills, tax forms, or preapproved credit card offers out of your mailbox. Thieves can also reroute your mail by completing a change of address request in your name.
Be sure to keep up with expected mail that doesn’t come and put your mail service on hold if you are away.
Someone who has your credit card number or bank account information can easily make small charges to test if they get caught. In many cases, these small transactions can smoothly slide through the cracks without you or the financial institution picking upon them.
A routine review may help you detect fraud early and stop it before it happens. Research has shown that individuals who closely monitor their accounts encounter lower losses.
Believe it or not, there are still bad actors who will go dumpster diving to steal someone’s personal information. Bank, credit card, or investment statements can be fished out of the garbage and used. Don’t forget about junk mail, especially the preapproved offers of credit.
Most of us have received a phone call or email from a scammer. They pretend to be someone you know who needs help or a government entity or business appearing to be legitimate. However, in reality, they're trying to steal your information.
To be safe, you can initiate a callback or return email, working from a known entity such as the official website or customer service line, rather than responding directly to the call or email. Also, be cautious of attachments as they can contain malware.
A secure password needs to be unique, complex, and lengthy. It's important to create different passwords for all of your accounts. You will also want to refrain from using information related to your identity, like:
Using an authenticator app may also reduce your risk of dentist or physician identity theft.
Many financial institutions will text or email you when suspicious transactions are made on your account. Monitoring your account online and setting up email alerts are two easy ways to stay connected and pick up on any strange activity.
Studies have shown that 10% of all theft occurs through mail or trash. Elect to receive your statements electronically whenever possible. Also, use online bill pay to help remove financial-related information from your personal correspondence.
You can request a free credit report from Equifax, Experian, and TransUnion each year. This can be done quickly online, and obtaining it will not lower your credit score. These credit bureaus also offer tools and alerts to help you monitor your credit.
AnnualCreditReport.com is another helpful option for obtaining a yearly free copy of your credit report.
Do not discard credit card offers; instead, shred them.
Also, whenever possible, remove your name from call lists. This can be done online at the national and state levels, as well as by calling or contacting an institution directly.
Not surprisingly, mobile devices can be an easy target. According to recent data, only 48% of individuals lock their mobile devices routinely. Therefore, password protection is critical on your electronic devices.
Read through each “explanation of benefits” statement to ensure you recognize the services provided. If a bill you're anticipating doesn't arrive, be sure to look into it.
These are only a few ways identity thieves can gain access to your sensitive personal data.
When your wallet is lost or taken, a bad actor can steal the information you have in it. Experts encourage you not to carry your Social Security card or more credit cards than necessary.
Should you use public Wi-Fi, your activities might be visible to cybercriminals. Best practices include not using open Wi-Fi for banking, shopping, and other sensitive or financial transactions.
Almost everyone has been affected by a data breach. Therefore, it's relatively safe to assume that some of your personal information may be out there already. Take precautions, check your credit report, and review your financial and insurance statements for unexpected activity.
Bad actors may send you an official-looking phishing email in an attempt to have you share personal information. Similarly, spoofing is much of the same thing but with caller ID, so that the number looks to be that of a trusted company or government agency.
Never give out personal information in response to a call or email. Instead, contact the company or person through a trusted source to determine if the call is legitimate.
Skimming devices are used to obtain credit card information, often at unmonitored payment sites. Make sure you use cards with chips for adding protection.
Those with malintent can determine your password by observing your fingers as you type in the key. Your credit card details can be captured on camera while you are making online purchases in a public location.
Try to be mindful of your surroundings, do not leave your card when it can be seen, and cover the keypad when entering your code.
Malware can be installed on your computer if you open an infected email attachment or visit a bad website. Exercise caution while opening attachments or links in emails. Also, be mindful of the websites you frequent.
Reach out to the Federal Trade Commission (FTC) by phone at 1-877-438-4338 or online at IdentityTheft.gov, the federal government’s one-stop resource for victims of identity theft. When you reach out, the FTC can help you create a personal recovery plan.
In addition, you may want to file a police report for identity theft if you know that someone committed a crime. Financial institutions and credit card companies may require that you file a report if you claim identity theft. This is especially true if you request that they investigate the case, remove the fraudulent activity from your account, and/or reimburse you for the lost funds.
Take a moment and think about how you can use some of the ideas in this article to better protect your personal data and what you need to do if it's put in jeopardy.
If your personal information is stolen or compromised, be sure to contact your financial institutions, accountant, attorney, and financial advisor. At Spaugh Dameron Tenny, our team of financial planners is always here to support you.
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The team at Spaugh Dameron Tenny works to present timely educational content that benefits doctors and their unique financial situations.
