How Identity Theft Happens & How to Prevent It

How Identity Theft Happens & How to Prevent It

Posted on February 14, 2023

Many people are victims of identity theft but are unaware of it until it is too late since it is an invisible menace. We thought it would be a good idea to emphasise the hazards and ways to prevent identity theft because it can affect auto loan applications.

The risks and expenses of identity theft are widely known to lenders, and they will work with you to make up for any losses. However, this post's main theme is that prevention is always preferable to cure.

This knowledge is available from our group.

How Does Identity Theft Happen?

Both digital and physical identity theft are possible. Here are a few typical scenarios.

Phishing: The practise of sending phoney emails purporting to be from a bank or credit card business. Frequently, they will also contain links and warnings like "act now, your account password has been lost," "there has been unauthorised activity on your account," or "we need to confirm your identity."

Never clicking links in emails, even if they appear to be legitimate, is the simplest method to avoid this. Contact the bank or business using their publicly available customer service number if you believe the email to be authentic. They will confirm it if it is authentic.

Hacking and malware: Although they are not as widespread as the media would have you believe, malware and device hacking are nonetheless threats. Open WiFi-enabled devices are vulnerable to man-in-the-middle attacks, and malware may be put on any device to record keystrokes, gather personal information, and send it back.

All of this may be avoided by installing software firewalls on every device, doing weekly scans, and utilising antivirus and malware scanners. Always use a VPN to encrypt your communications if you use free WiFi in public places like airports and coffee shops.

Dumpster Diving

When you put old bank statements, government documents, or any other personally identifiable information in the trash, this type of dumpster diving collects it. They can be used to apply for credit cards, loans, open bank accounts, secure phone contracts, automobile rentals, and more when combined with other forged or stolen forms of identification.

Shred or destroy all documents that can be identified to prevent this. In this manner, the thief won't have anything to use against you.

Physical Theft

A house invasion, ATM skimming, or pocketbook snatching are examples of physical theft. Other than identity theft, each is serious and may have repercussions that are far-reaching. Cities frequently experience ATM skimming, which can steal both your card information and your PIN number.

Keep track of your whereabouts at all times and take precautions to secure yourself and your belongings to avoid identity theft in this manner. Check each ATM you use for tiny cameras pointed at the keypad and anything that seems out of place over the card slot to prevent ATM skimming. Watch out for those loitering who appear out of place as well.

Oversharing is Not Caring

Oversharing can be risky in addition to being a social faux pas. Online, anyone may claim to be anyone, so you never really know who you're speaking to.

Engage in internet communication; but be careful of who you're speaking to and that they might not be who they claim to be.

Be social, make friends, and take advantage of the internet. Just try to keep as much personal information to yourself as you can.

Learn to Love Two-Factor Authentication

Two-factor authentication, 2FA, is when you have to add an SMS code or use an authenticator app as well as your username and password. While they are an extra step to log into an account, they are also a very effective protection.

Without access to your phone or authenticator, a fraudster won't be able to access your account even if they have your username and password.

On every account that supports it, we advise implementing 2FA.

Monitor your credit report

You are welcome to review your credit report once a year, free of charge, from each credit bureau. Purchase them from Equifax or TransUnion. You can also use free credit offered by several financial goods and credit card protection services.

If you don't check your report, a demand letter from a creditor is frequently the first indication of identity theft. Keep an eye on your report to catch it sooner.

Report any questionable activity to the credit bureau so they can freeze your account while you look into it. This will halt any additional credit applications made in your name and stop identity theft.

Hopefully, you now know a little bit more about identity theft protection. Pay close attention to everything said above to significantly reduce your chance of identity theft. Although there is no such thing as 100% protection, this is as good as it gets for the time being.

For those of you who know that you have a challenging credit situation, please visit Unique Jeep where we have a team of credit specialists ready to help you get approved for a car loan today!