(DailyAnswer.org) – Identity theft can leave regular, hard-working people reeling from adverse financial and other effects. The damage can take months or even years to resolve and, in some cases, it’s permanent. Unfortunately, identity theft is on the rise, prompting more people than ever to learn about privacy and data security, especially as more personal or private data is moved to digital records, including the cloud.
In 2023, the FTC reported received 5.7 million reports of fraud, and at the top of the list was none other than identity theft. While this was a 1 million increase over the previous year, with certain precautions, ID theft doesn’t have to make you live in fear. Even if you’ve been recently hit with identity theft, there are several things you can do to recover from it.
What Can Be Done After Identity Theft?
Notify Affected Institutions
The most important first step after identity theft is to alert all your financial institutions, including the credit bureaus, about the incident. This should compel them to take proper precautions, and it will give you a documented record that you’ve notified relevant financial institutions, invoking certain legal protections (just be sure you keep accurate records, including certified mail receipts).
According to the FTC report cited above, benefits-related scams were another major form of ID theft. If your identify thief targeted government benefits, be sure to similarly notify all relevant agencies.
File a Police Report
While many cases of identity theft go unsolved, some are. Filing a police report may also be required in order for certain financial institutions to help you replace your money.
Cancel Accounts and Make a Record
Any stolen credit cards or credit card numbers should be canceled immediately, and if account numbers have been hijacked, look into having them changed — or better yet, open and transfer assets to new accounts, where possible. Contact law enforcement as well, to improve your chances of recovering your losses.
Filing an FTC ID Theft Affidavit can help tremendously in clean up negative marks against your financial history. This requires a police report, so you’ll need to look at the processes for filing proper paperwork in your jurisdiction.
Preventing Identity Theft in the Future
Protect Your Info
Going forward, it’s important to limit sharing of personal identification data, especially the social security number (SSN). Many are in the habit of sharing it freely, but the social security administration originally stated it was not for identification purposes and cautioned against sharing it any more than strictly necessary, and for good reason.
Today, even well-meaning institutions (let alone unscrupulous actors) are in the habit of all-but demanding it when it isn’t necessarily required — and in fact, it’s a felony. Ask your banks and other institutions to set up a code word to use instead of sharing your SSN. They may also need to ask a separate verifying question (e.g., account details only you should know).
They might push back, but just stay calm and remind them that it may be illegal to require the disclosure of it (US Code title 42, section 408, to cite one example). Often, the company or agency will make proper accommodations, so you don’t need to risk sharing it each and every time you call a credit card company, bank teller, or other institution.
Home Address Proxies & Using Proper Digital Channels
To prevent mail-related ID theft, you can protect your home address by renting a private mailbox, which can cost only $10–20 per month. When it comes to digital information sharing, seek alternatives to sharing personal identifiers and private data over common means of communication, like text messages or emails. Even asking over improper channels is a huge red flag, and instruct anyone requesting it to use an authorized, encrypted platform instead (e.g., messaging systems through your bank portal).
Educate Yourself
Further, routinely familiarize yourself with the most common scams out there, and inform those in your household about them as well. Don’t answer questions from people you don’t know, as they could be trying to “cold read” you for social engineering attacks. It all may seem like an unnecessary burden—but the true burden is not taking any precautions at all.
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