We hear about it all the time. Someone is defrauded out of hundreds or thousands of dollars because a person’s private information was compromised. Access to a valid social security number, a driver license and a date of birth could be more than enough to steal an identity. And all of a sudden criminals are racking up expensive purchases in someone else’s name, often without the victim being aware that they have been targeted. A computer password or a creative sales pitch can also lead to the theft of money or information. Identity theft is very real, costing Americans about $56 billion in 2020, according to the 2021 Identity Fraud Study by Javelin Strategy & Research. About 49 million consumers were victimized, the study showed.
While a bulk of the loss was from the stealing of personal information, interaction with individuals also led to fraud. Here are some ways your members can keep themselves safe:
Passwords: Change passwords often, particularly to banking or other financial websites. Passwords should be unique and easily remembered, but not common. Passwords such as “12345″ or a person’s street address provide little protection. Some experts advise using phrases versus a single password;
Click cautiously: Avoid clicking on unknown links that could cause a virus or other damage to the computer. Check website names carefully before clicking on them. Scammers often tend to create fraudulent sites that mimic the originals;
Shred documents: Tax returns, credit card statements and other financial documents are a gold mine of personal information. Never toss them into the garbage or recycling bins whole. Shred them before discarding. The Internal Revenue Service (IRS) recommends keeping tax records for between three and seven years, depending on circumstances. They should be kept in a locked, fireproof file cabinet for safekeeping along with any other saved financial documents;
Scams are also a major issue related to fraud and identity theft. Here are some common ones:
- Fraudulent telemarketers: Callers may often pose as Social Security Administration, IRS or law enforcement representatives saying there is an issue with the account and they need the Social Security Number. Unscrupulous telemarketers may also say an arrest warrant has been issued and they need a Social Security number to clean up the issue. Never give any personal information over the phone. These agencies use mail to contact individuals.
- Gift cards: A popular scam is to request gift cards for payment of items. If a telemarketer asks for the purchase of gift cards for whatever reason, avoid the transaction.
Identity theft can devastate an innocent individual’s credit, and new ways to access personal information are constantly being developed. Protect your members from the consequences of identity theft with a quality insurance package from IMAC. We’re here to help.