Take steps to safeguard your personal information.
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Anyoneânot just the elderlyâcan be victimized by identity theft. This type of crime affected 42 million Americans in 2021, costing consumers $52 billion. Luckily, identity theft protection is possible, and thereâs recourse if you do fall prey.
Identity theft goes back to Shakespeare (many of his comedy plots hinge on it), and probably well before that. Methods today are more sophisticated, and can cause massive pain.
Key Points
- Identity theft victimizes more than 40 million Americans a year, costing consumers $52 billion.
- Protect yourself from identity theft by taking steps to secure your important personal information.
- If you become an identity theft victim, there are proven ways to resolve the problem.
When you think of identity theft or identity fraud, senior-targetingâsomeone scamming Grandma over the phoneâmight come to mind. Or maybe it conjures visions of a naive person who sends their bank account and routing number to a stranger online in hopes of receiving $1 million from an overseas âprince.â
Such cases happen, but there are more insidious ways identity thieves now target victims. They often involve things like credit cards, insurance plans, or even something as mundane as your driverâs license.
At the same time, senior-targeting of vulnerable elderly people remains a major problem that can wipe out a lifetime of savings.
Identity theft is when a criminal uses your name and informationâperhaps a credit card number, a Social Security number, or an insurance policy numberâto siphon money from your accounts.
This sort of fraud can happen without your being aware of it. Here are some common ways you can become a victim:
- You shop at a major retailer whose computers were hacked by criminals collecting credit card numbers.
- You receive a letter from your state asking for evidence of unemployment in regard to a claim made in your name, when you never filed a claim or even lost your job.
- You get a fraudulent phone call, email, or text. The foreign prince scam has almost certainly run its course after being a common joke for decades, but scammers have gotten more devious as they target your money.
For instance, you might get an email ostensibly from the Internal Revenue Service (IRS) saying youâre owed a tax refund. When you share the information requested, the thief gets important data from you and possibly receives access to your tax and paycheck information. This is commonly known as âphishing,â a well-known method of senior-targeting.
Sadly, information thieves even use the tragic COVID-19 pandemic to target potential victims, according to the IRS. One common scheme is when someone poses as an IRS agent and sends an email saying youâre still owed pandemic-related stimulus money. Theyâll request personal information and promise youâll get the money once you respond. The email looks official, as if the IRS actually sent it.
But the IRS says it wonât initiate contact by phone, email, text, or social media asking for Social Security numbers or other personal or financial information related to pandemic Economic Impact Payments.
âCaution and awareness are our best lines of defense against these criminals,â the IRS said in a press release. âEveryone should verify information on a trusted government website, such as IRS.gov.â
Top targets for money siphoning
- Social Security. Someone could use your stolen Social Security number to file a tax return with the IRS requesting a fraudulent tax refund.
- Credit cards. A thief who nabs your Social Security number can often apply for credit in your name. Theyâll spend money and not pay it back. A few months later, youâre bombarded by calls from creditors and collection agencies. Youâre generally not on the hook for repayment, but your credit score will suffer, and it will be quite a headache to repair the reputational damage.
- Driverâs license. State-issued driverâs licenses and ID cards are the most widely used forms of identification in the country. If a thief gets access to yours, they can open accounts in your name, avoid traffic tickets, or collect government benefits such as unemployment checks.
- Medicare fraud. Someone could use your name, Social Security number, or Medicare number to submit fraudulent claims to Medicare or other health providers.
How to protect yourself from identity theft
- Carefully check each credit card bill for charges you never made.
- Be careful of sharing personal information. If a company youâre buying from asks for a Social Security number, for instance, find out if they actually need it. Usually they donât, and youâre under no obligation to provide it.
- Protect your personal information at home. Buy a safe or a file cabinet with a lock for important documents like passports and Social Security cards. Consider buying proven security software to protect personal files on your computer, and use the highest level of security offered by your online financial account providers. It may take a few extra minutes to log in, but youâll be less likely to have your information stolen.
- Ask for a free credit report. Youâre entitled to one every 12 months. This will help alert you to any unauthorized activity. Government agencies are well aware of Social Securityârelated fraud. The IRS, for instance, may contact you if it suspects a fraudulent tax return was filed in your name.
What to do if your identity is stolen
Here are some ways to protect against some of the most common identity theft schemes:
- Immediately report identity theft to credit reporting agencies and place a fraud alert on your credit report.
- Shut down any accounts that were tampered with or opened fraudulently.
- File a report with the local police.
- Report the crime to the Federal Trade Commission at IdentityTheft.gov and start a recovery plan.
The bottom line
Millions of Americans have their identities stolen every year. Itâs not a problem thatâs going away, but by taking some easy steps, you can reduce your chances of being victimized. And if you do happen to become a victim of identity theft, the earlier you address it, the more quickly you can get your life back.
This article was most recently revised and updated by Dan RosenbergThis article was most recently revised and updated by Doug Ashburn
