How Does Identity Theft Happen?

Once ID your personal information is compromised, identity thieves use it in a variety of ways:

• Credit card fraud – They may open new credit card accounts in your name. When they use the cards and don’t pay the bills, the delinquent accounts appear on your credit report. They may change the billing address on your credit card so that you no longer receive bills, and then run up charges on your account. Because your bills are now sent to a different address, it may be some time before you realize there’s a problem.
• Phone or utilities fraud – They may open a new phone or wireless account in your name or run up charges on your existing account. They may use your name to get utility services like electricity, heating, or cable TV.
• Bank/finance fraud – They may create counterfeit checks using your name or account number. They may open a bank account in your name and write bad checks. They may clone your ATM or debit card and make electronic withdrawals in your name, draining your accounts. They may take out a loan in your name.
• Government documents fraud – They may get a driver’s license or official ID card issued in your name but with their picture. They may use your name and Social Security number to get government benefits. They may file a fraudulent tax return using your information.
• Other fraud – They may get a job using your Social Security number. They may rent a house or get medical services using your name. They may give your personal information to police during an arrest. If they don’t show up for their court date, a warrant for arrest is issued in your name.

As a trusted national nonprofit, GreenPath Financial Wellness understands the importance of keeping your finances in top shape – and that kicks off with financial safety, especially in the world of digital transactions.

Empowering ourselves against identity theft involves adopting proactive measures.

Regularly monitor bank statements, review credit reportsreview credit reports, and online accounts for any suspicious activity. Be cautious when sharing personal information online, especially on social media. Invest time in creating strong, unique passwords, and consider using password managers for added security.

• To prioritize your safety and protect your personal information, start by using reputable and secure online marketplaces and well-known retailers’ websites.
• Always ensure that the website’s URL begins with “https://” to guarantee a secure connection.
• Employ reliable antivirus and anti-malware software to shield your device from potential threats.
• When making payments, opt for secure methods like credit cards or trusted online payment services, avoiding direct bank transfers.
• Consider using virtual credit cards for an added layer of protection.
• Enable two-factor authentication whenever possible to fortify your account security.
• Stay vigilant against phishing attempts by verifying the legitimacy of emails, and refrain from clicking on suspicious links.
• Regularly monitor your financial statements and credit historycredit history for any unauthorized transactions.

In a world where our digital footprints leave traces of our lives everywhere, understanding the mechanisms behind identity theft is paramount. By staying informed and adopting vigilant habits, we can navigate the digital landscape with confidence, ensuring that our identities remain securely our own.

See more GreenPath resources about preventing identity theft.
See more GreenPath resources about preventing identity theft.