How to prevent identity theft

Why is it important to prevent identity theft?

A stolen identity can lead to unauthorized charges, fraudulent loans, and even legal or reputational trouble. It all starts when a stranger gets their hands on your personal information, like your Social Security number or passport, and uses it for malicious purposes. Identity theft can leave you penniless and emotionally drained, which is why it is so important to protect both your personal information online and your physical documents.

How to prevent identity theft online

There is no single solution to fully protect yourself from all types of identity theft online. However, the more of the following tips you incorporate into your cybersecurity routine, the safer your identity will be:

1. Protect your Social Security number

Guard your Social Security number (SSN) as best as possible — sometimes, it's all criminals need to drain your funds, ruin your credit score, or commit fraud in your name. To save yourself all this trouble, never carry your SSN in your wallet and shred all the paperwork containing it before tossing it into the trash. Also, if someone asks for your SSN, make sure the person is trustworthy — find out why they need it and if they will properly protect it.

2. Check credit reports regularly

Keeping an eye on your credit reports and credit score may help you catch identity theft before it becomes a massive headache. Do regular check-ups every few weeks. If you notice unfamiliar credit activity or changes in your credit file, report them immediately to your financial institution.

Checking your credit report is essential when preventing identity theft, but digging through endless charges can be overwhelming. So we offer help — a NordProtect identity theft protection service designed to monitor your credit activity and notify you about potentially suspicious charges in your credit file without you having to lift a finger.

3. Use a VPN

A virtual private network (VPN) creates an encrypted tunnel between your computer and the internet. It scrambles your online traffic into a jumble of letters and numbers, which makes it unreadable to third parties. No one, including scammers and fraudsters, can see what you're doing online, let alone lay hands on your sensitive data.

4. Learn about common scams

Identity thieves use various deceptive tactics to extract personal information from their victims. They can make phone calls and send emails, asking for your SSN, banking details, or even passwords as well as appear to represent a government agency or legitimate business. If you respond to their request for personal information, your identity could be taken in the blink of an eye.

The more you learn about the most popular scams and internet fraud, the safer your identity will be. Educate yourself about common tactics scammers use to extract personal and financial information, which they can later use for identity fraud.

5. Wipe electronics before disposing of them

Thinking about selling or donating your old tablet or smartphone? Make sure to wipe it first — you never know exactly where your device might end up. 

Do a factory reset before handing your device over to a new owner to make sure your data is gone from the hard drive for good. The reset will delete all your passwords, photos, documents, and apps — everything that can be tied back to your identity.

6. Create strong passwords

Repeat after us: I must create strong passwords — not "password123" or "letmein." Every one of your accounts needs a solid password that mixes upper- and lowercase letters, numbers, and special characters. Avoid anything predictable, and definitely don't reuse your password on multiple accounts.

Unique and complex passwords will make it hard for hackers to crack your accounts using tactics like credential stuffing and password spraying.

7. Enable two-factor authentication

Two-factor authentication adds a security layer to your private data. Setting it up can help prevent identity thieves from getting into your most important online accounts, like email or bank. 

With two-factor authentication, you can set up biometric authentication or use a separate device for identity verification. This means that a hacker won't be able to access your social media or financial accounts even if they manage to steal your passwords.

8. Install antivirus software

Antivirus software protects your computer from malware and viruses, such as keyloggers, spyware, and ransomware, which are often designed to steal your passwords, banking details, and social security details. By defending your device against these cyber threats, antivirus software makes it hard for hackers to access and exploit your personal information for financial gain.

9. Monitor medical statements

One of the most important things you can do to protect your identity is to monitor your medical statements. If you notice unfamiliar medical bills, maxed-out healthcare coverage, or random entries in your medical history, react immediately. It could mean a stranger is using your health insurance money for their medical procedures.

How to prevent physical identity theft

Protecting your personal information online is the cornerstone of keeping your identity secure. However, let's not forget that physical documents hold a lot of information about you, too. Follow these tips to protect your physical identity:

1. Shred personal documents

If you believe no one would sift through your garbage to find your personal or financial information, think again. Identity thieves will leave no stone unturned searching for your information for their malicious deeds. So shred all documents containing your Social Security number, surname, photos, and contact details. This is a simple yet important step in protecting your identity.

2. Watch your mailbox

Never leave your mailbox unlocked. Stolen magazines are a minor inconvenience compared to what could happen if an identity thief gets hold of sensitive documents. 

Imagine a criminal stealing a letter from a financial institution or governmental agency. Any information in this letter, including your Social Security number, health insurance number, or credit card details, might become a tool for fraudsters to apply for loans or use your health insurance for their medical procedures.

3. Never leave your documents unattended

Whether at work, at home, or on holiday, make sure your important documents are secure. Consider putting them in a lockbox at home and don’t leave them in your car. If you leave your documents unattended, it might take only a moment for someone to take advantage of your distraction, and before you know it, they could be using your Social Security card to commit fraud in your name.

4. Keep your devices locked with a strong PIN or biometrics

Your phone, tablet, and computer contain a lot of information about you, so make sure to lock them to prevent strangers from accessing your personal details. You could set up a biometric lock, like face recognition or fingerprint on your devices. Or you could use a PIN. Just make sure it's not one that is easy to guess, like your birth date — pick one that'll keep criminals guessing.

5. Beware of your surroundings when using an ATM

Taking a quick peek over your shoulder when using an ATM will not hurt. Being aware of your surroundings can stop a criminal from spying on your credit card details and your balance or even stealing your physical card.

How to prevent identity theft when traveling

Don't let criminals spoil your holiday. Beyond the tips mentioned above, you can do the following to protect your identity when traveling:

1. Avoid public Wi-Fi for sensitive transactions

Public Wi-Fi might seem harmless but can expose you to a data breach. Hackers can position themselves between you and the network, monitor your online activity, or even distribute information-stealing malware on your device. If the hacker gains access to your Social Security number, credit card details, or important emails through the vulnerabilities of public Wi-Fi, they can use it for identity theft or fraud.

Still, sometimes public Wi-Fi is the only option when traveling. So if you need to access personal information or make a transaction on a public hotspot, use a VPN. It will scramble your online traffic into gibberish, making it unreadable for hackers.

2. Carry only essential documents

Never carry your passport, ID card, driver's license, and other important documents all in one place while sightseeing. It's better to find a secure spot for your essential documents in your holiday rental. Losing your document pouch could complicate your trip and make traveling back home difficult. Worse yet, if your documents fall into the wrong hands, your identity could be in jeopardy. So protect your documents — they're priceless.