What is Identity Theft?
Identity theft is a term used to refer to crimes in which someone wrongfully obtains and utilizes another individual’s personal data in a way that involves fraud or deception for monetary gain or malicious use. There are multiple forms of identity theft that can occur and some common examples are included below:
- Account Takeover Fraud
- Debit/Credit Card Fraud
- Driver’s License Identity Theft
- Social Security Identity Theft
- Tax Identity Theft
- Online Shopping Fraud
In all cases of identity theft, your personal data will be used without your consent which could lead to significant financial losses. According to a recent report conducted by the Javelin research group, over 42 million Americans were victims of identity fraud in 2021 costing victims a total of over 52 billion dollars in losses. Aside from the monetary losses, recovering from identity theft is an extremely time-intensive process that can take up several months to fully resolve. As identity theft becomes more prevalent, it is crucial to learn how to protect yourself from identity theft and have a plan in place if your information falls in the wrong hands.
How do I Protect Myself from Identity Theft?
As long as your data is being stored on the internet there will always be a chance that someone could steal and misuse your information. However, there are still many practices one can implement to greatly reduce the risk of identity theft. Below is a list of simple practices that can you can follow to better protect yourself from identity theft:
- Review credit card and bank statements regularly and check for unauthorized transactions.
- Freeze your credit with each of the three credit reporting agencies. This will prevent anyone from opening accounts, applying for loans, or applying for a new credit card in your name while your credit is frozen. If you choose not to freeze your credit, request a credit report from one of the three reporting agencies every four months and check for any drastic changes in your score.
- Collect your mail daily and properly dispose of documents such as bills, statements, and credit card offers that may contain your personal data.
- Utilize a password management tool to create and store unique passwords.
- Enable multi-factor authentication (MFA or 2FA) on all accounts.
- Avoid clicking on links or opening attachments from unknown sources.
- Limit your online presence and do not overshare personal information on social platforms.
What should I do if I’m a victim of Identity Theft?
If you become a victim of identity theft you should immediately contact privacyresponseteam@lplfinancial.com, so impacted accounts can be put on alert and properly secured. You should then navigate to IdentityTheft.gov Recovery Guide and follow the steps and procedures outlined to begin securing your non-LPL accounts and repairing the damage caused by the incident. If you are a victim of a data breach and your information has been lost or exposed, then please follow the steps outlined in the IdentityTheft.gov Data Breach Guide instead.