Identity theft is something that many folks associate with other people. Usually, people on TV shows or in the movies. But, identity theft is a real threat for us regular real folks. The statistics are alarming too. A third of Americans have had their identity compromised! In 2020 alone, over 49 million people were victims of identity theft and this led to an astonishing $56 billion in losses! (Javelin) These statistics are sobering and are likely to increase as online targeting continues to rise. So, what can we do? How can we fight back? Thankfully there a few options we have. In this article we outline the best ways to prevent identity theft.
What is Identity Theft Really?
When a cybercriminal gets access to your personal data, they can steal money or get other benefits. With your personal information, they can obtain real identification documents under your name with the photograph of another person. They can then sign up for memberships, apply for credit cards or apply for loans in your name.
It goes without saying that identity theft can have a huge financial and emotional impact. There have been many stories about whole families who had their identities stolen. It causes tremendous pain both financially and emotionally. But also the logistics involved in recovering from an identity theft can be very draining too. Often hours of communication is required with officials, financial institutions and other affected groups. Not to mention the time taken to cancel accounts and open new ones, or have new documents issued.
Identity Theft Statistics
To drive home how pervasive the threat of identity theft is, we share some alarming statistic below. Hopefully these will be enough to make some changes and extra precautions in how you protect your identity both offline and online.
- Every 14 seconds, someone becomes a victim of identity theft. (FTC)
- Identity theft is most commonly committed through credit card fraud. (FTC)
- Social media users are 30% more susceptible to having their personal information stolen. Facebook, Snapchat and Instagram also have a higher risk of identity theft, bringing the statistics to 46%. (Business News Daily)
- Identity theft has affected one in five Europeans. And 56% of Europeans have been victims of cybercrime.(GRC World)
- Fraud-induced expenses were the highest in the 60-69 age range. In 2020 and 2021, Baby Boomers suffered the greatest losses due to identity theft. However, the identity theft statistics of 2021 show that Baby Boomers are also in the fourth position in terms report numbers. Scams cost this age group a lot of money. (FTC)
- Every year, over 1.3 million children are victims of identity fraud. The studies also show that half of these children are aged six or under, and the average age is declining. (Michigan State University)
What do you mean by personal information?
Any information or data which can be used to confirm your identity or locate you is considered personal information. This information can be one piece or several pieces combined. This is often called personally identifiable information (PII). It includes information such as your name, parent’s name, address and date of birth. Also, it can include usernames/passwords/passphrases, details about bank accounts, the school or university you attended, check-ins at events, or RSVPs.
When you register on a new social media site or shopping website, you’ll be asked to provide some personal information. What you share can be misused or stolen – think of the list of Australian companies whose customers’ personal information was stolen by hackers. You should only share your information on trusted websites and protect it as much as possible.
How to Protect Your Online Identity
There are some steps you can do to make sure your online identity remains as secure as possible. Here are my 7 top tips:
1. Always Use Multi-Factor authentication when it’s offered
It’s a no-brainer to use Multi-Factor authentication (MFA) and 2 Factor Authentication. This makes it much harder for hackers. It requires that the user provide two or three verification factors in order to access an account or application. It could be a message, an email or a code generated from an authentication app. Even if the hacker already has your username and password, they will still need this final piece of information to access your account. That’s what makes this the number one best way to prevent identity theft.
2. Use a different (and complex) password on every account
It may be a little time-consuming to create a complex and unique password for each account, but it is the best way to protect your identity online. Here’s why: If you use the same login information on all of your accounts, hackers can access all accounts with this password! A unique password is the best way to protect each account. To make the process easier, I use a password manager. They not only generate complex passwords but also remember them! You only need to remember your Master Password, which should be very complex! There are a lot of password manager options out there. In addition to paid options, there’s also free password managers, browser-based password managers, offline password managers for extra security, and my current favorite Password manager.
3. Updating and backing up your devices and software is essential
Most updates are designed to address security flaws. Yes, they are annoying, but if you ignore updates, you make it easier for hackers. Don’t forget your security software is also updated!
Always keep a copy of your important information in case anything goes wrong. All your photos, important documents, and your personal information should be included. Saving to the cloud or a hard drive is a great option. I use a combination of hard drive, external drive and cloud backup. You can find out more on backup best practices here.
4. Stay ahead of the threats – Invest In A Security & Identity Protection Solution
Knowledge is power, so investing in high-quality security and identity monitoring tools will keep you on top of the threats. McAfee+ is McAfee’s all-in-one privacy, device and identity protection solution. It’s a great way for Aussies protect themselves online. It includes identity monitoring, a password manager, but also unlimited VPN, file shredders, parental controls, and protection scores. McAfee+ advanced, the Rolls-Royce version, offers additional identity protections, including access to licensed restoration specialists who can repair your credit and identity in the event of a data breach. Subscribers also have access to the lost wallet protection, which helps you replace or cancel your credit cards and ID if they’re lost or stolen.
5. Use only VPN or Secure Wi-Fi
Unsecured Wi-Fi in public places can be a great way to stay connected while you are out and about, but it is also a popular method for scammers and hackers to gain access to your personal data. Unsecured WiFi is free WiFi that’s available in public areas such as shopping centres, libraries, and cafes. Instead of using Wi-Fi you can use your data plan. You can also invest in a Virtual Private Network that will encrypt everything you share.
6. Cancel, Delete, Unsubscribe
If you are anything like me, you have signed on, subscribed to and opened a heap of online accounts over the years. I have hundreds. Here’s the thing… I don’t use the majority of them. They’re just out there, existing…. and waiting to be used again, whether by me or someone perhaps someone else pretending to be me. The more accounts you have online, the more at risk you are. It’s a numbers game. So, if you have online accounts and subscriptions that you are using, cancel, delete and unsubscribe from them. It will help reduce your exposure to identity theft. Having a password manager can greatly help because I can go through the list of accounts and easily identity some I don’t use and many I’ve just forgotten about. As you go through, make sure you look at the passwords used for the accounts you want to retain, and make sure they’re strong!
7. Use dark web monitoring tools
Many of the passwords and confidential information that are stolen, end up on the dark web for sale. The dark web is the underbelly of the internet. You probably have never even seen or visited a dark web site. That’s because it requires particular software to access. Much of what is done on the dark web is anonymous to protect people’s identities. But the irony is, that these anonymous hackers and thieves are sharing and buying and selling your identities, whether hat’s personal information, pictures, health data, passwords, SSN’s, locations…. all kinds of stuff. And for the main purpose of causing harm and extorting money.
There are tools that are able to scan areas of the dark web for your private information, like your name, email addresses etc. Even more sophisticated monitoring tools are being developed for corporate use where the risks of collateral damage can be orders of magnitude greater. But for us regular Joes, antivirus and password manager services often include dark web monitoring features, and these can help to alert us when our details have been compromised. I discuss dark web monitoring here. It’s another great tool to prevent identity theft.
8. Migrate to a Secure Email Service
Seems like everyone and their dog uses gmail these days. But there’s several other email services like good old yahoo and hotmail and too. These are all pretty reliable and secure. However, they do have some chinks in their armor when it comes to security, and especially the encrypted transfer and storage of your emails. Given that email is still an incredibly popular, widely used form of communication, including for sensitive, personal information you might want to consider upping the ante. If you want to protect your email on the next level, then you should consider a secure email service like Proton mail, husmail or xyzmail. These services ensure that your emails are secured at every pint, including when stored on their servers, unlike those left on your regular free email servers.
9. Cloak your identity with encryption
This sounds all very covert and sophisticated, but there are many affordable services out there that can help to conceal your identity and especially your whereabouts when using public WiFi. These services are called VPNs (Virtual Private Networks). If you travel or use public hotspots, then they are definitely a service worth investing in. They also allow other benefits, like access to streaming platforms and otherwise restricted services abroad.
The Final Score – the best ways to prevent identity theft
There’s no doubt. Check the statistics, and you’ll see the alarming increase of identity theft cases across the planet. It’s not just an issue for those that have a lot to lose. An identity stolen doesn’t just represent financial gain to a hacker, but also it can provide a cloak for other nefarious activities. Preventing identity theft is not 100% guaranteed, but there are ways to reduce your risk. I encourage all people to check the 9 simple ways we have outlined above that can help you prevent identity theft. An ounce of prevention is worth more than a pound of cure!
Be smart and stay safe!