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Identity Theft — Types, Signs, and Protection for Victims

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The internet is an awesome place where you can do things like shop or interact with family and friends you may not see all of the time. For as much fun as it is, though, it can also be quite dangerous.

Identity Theft --- Types, Signs, and Protection for VictimsAccording to the U.S. Federal Trade Commission, in 2020, there were about 2.1 million fraud reports, and many of these were for the purpose of stealing another person’s identity.

Victims of identity fraud may lose a lot of money, and their credit could be damaged for years. They also might have a lot of mental anguish and stress to deal with. There is a threat of identity theft for almost anyone, but if you know how to do your best to avoid it, as well as signs of ID theft, you can help to protect yourself and your family.

The Definition of Identity Theft

Most of us have heard of identity theft, but do you really know the definition? It is when a cybercriminal steals a person’s personal or financial data, generally in order to use the information for financial gain. It means they may try to get information on full names, Social Security numbers, birthdays, address, credit/bank account information, or even driver’s license information. Once they have this information, they can use it to apply for credit cards, open bank accounts, get insurance, or even do things like buy a house or car…all in the name of the victim.

How Does ID Theft Happen?

Before we get into the types of identity theft, it’s important to know how ID theft happens:

  • A Phishing Scam – These days, phishing scams are all over the place, and they often happen via email or websites. Generally, with these scams, a person pretends to be someone you know or trust, such as posing as a customer service worker from your bank, in order to get information and personal data.
  • Data Breaches – Many companies store the information of their customers, including your doctor, your ISP provider, your credit card company, and more. If there is a data breach, criminals will have easy access to this information, and it might even get sold on the dark web.
  • Snooping on Social Media – Criminals often will get information to steal an identity by using social media. Most people, for instance, have their birthday on their Facebook page, and they might even have their home address. That, along with their name, might be all they need to gain access to other accounts. They can also look for things like pet names or kid’s birthdays, as many people use these for passwords or PINs.
  • Hacking – A hacker can easily get into phones, tablets, or computers if they aren’t protected. They use malware and viruses to do this. Having a good antivirus software can help stop this, and it can help to protect your personal information and devices from the bad guys.
  • Theft – Some criminals really go back to basics to steal someone’s identity. They can really just take it. By stealing your wallet, your purse, or even your phone can give them all of the information they need.
  • Dumpster Diving – A criminal might also simply pull your information right out of the trash. If you are throwing away documents that have information such as your name, address, birthday, or other information, a thief can find this right in the garbage. Keep in mind that things like a bank statement or credit card statement can contain your number, and a pay stub may have your Social Security number on it. Always take a couple of minutes to shred any paperwork before you throw it out.

The Five Main Types of ID Theft

 There are a ton of different types of identity theft, but there are five main ones:

Financial ID Theft

 The most common type of identity theft is the financial variety. This is when a scammer uses a victim’s data for financial gain. This type of ID theft may take the following forms:

  • A scammer might use your credit card information to buy things online.
  • A hacker can literally steal money right out of your bank account – they often do this by taking small amounts here and there from unknowing victims. This amount might be so small that you may not even notice it — but when they do this over and over again, they can collect millions.
  • A criminal can open new accounts in your name, too, by simply using your Social Security number and supporting data. For example, a person can open a credit line in your name, and then use all that credit…leaving you with the pay back.

The good news, however, is that it is fairly simple to protect yourself from ID theft by keeping an eye on your bills, your bank account, and credit card statements. If you see something that looks strange, you should immediately notify your bank or credit card company. You should also check your credit report for any changes. A decrease that you were not expecting could mean that there is some type of fraud going on. You can check your credit report in a number of ways, and most credit card providers offer it as a perk for customers.

You can also choose to place a fraud alert on credit reports, so that you can stop anyone from opening any new accounts by using your information. This means that lenders and creditors must take extra steps to verify your identity before they offer a credit increase or loans. A credit freeze might also be a great idea.

Medical ID Theft

Another type of identity theft is medical identity theft. This is when a criminal takes a person’s identity to get health care by posing as the victim. They can use this information to do things like obtain prescription drugs or even get expensive surgery done. This means that you will get the bills for all of this, and it can also negatively affect your health records. This can mean you will have difficulties getting insurance in the future, and it can also mean you won’t get the care you need in a health crisis.

You can help to minimize the risk of medical identity theft by taking the time to review any and all medical claims you might get in the mail. If you see anything that doesn’t look right, such as a prescription you didn’t get, you should immediately contact your doctor’s office and your insurer. You should also contact the U.S. Department of Health and Human Services to make a claim.

Criminal ID Theft

This type of identity theft occurs when a person is arrested for a crime, but then they use the name of someone else. They might be able to do this by using a fake or stolen ID, such as a driver’s license, to show the cops.

This can be a difficult type of ID theft to notice if you are a victim until some type of consequence happens, such as –

  • You get a court summons for a crime you didn’t commit
  • You get a bench warrant for your arrest
  • You get information that someone is performing a background check on you

One of the things that you can do to protect yourself against criminal ID theft is to protect your ID. If your driver’s license or state-ID is stolen or lost, you should immediately report it to law enforcement or the DMV. Also, you should make an effort to limit the type of information you share online.

Synthetic ID Theft

 This is the fastest growing type of ID theft in the US, and it is the practice of people creating a fake ID using the real information of the victim. The bad guys might, for instance, use information such as the Social Security number, birthday, and address of three different people, and then combine this information to create a new ID. They can then use this information to commit fraud.

The most important thing to know about synthetic ID theft is that you may be able to stop it by knowing that it’s happening, and then acting quickly. For instance, if you get a piece of mail that has your address on it, but a different name, or you get a phone call to your number asking for someone you don’t know over and over again, this could be an issue. Again, you should be checking your credit reports for anything strange, which could indicate that there is an issue. An identity monitoring service may also help to catch this type of ID theft.

Child ID Theft

Finally, we have child ID theft. In this case, a scammer steals the information from a child to open a new account or credit line in that child’s name. Then, they can use that information to do things like apply for benefits, get a driver’s license, or even purchase a home. It is easier for a scammer to get away with this than with an adult’s information, as most children don’t have any type of credit nor financial accounts.

A sad fact, here, is that the ID theft of a child is often done by their own family or family friend, as they will have easy access to the child’s information. Most of the time, they can get away with it for years, as a minor typically won’t even realize that they are a victim until they try to do something like take out a student loan for college.

The best way to check on this is to see if your child has any type of credit report with TransUnion, Experian, or Equifax. If they do, look at the report, and then let authorities know if there is anything suspicious. You also might consider placing a freeze on your child’s report to help to minimize any type of fraud from occurring.

Signs that You are a Victim of ID Theft

None of us want to be left in the cold when it comes to ID theft, so by knowing the signs you can use to spot it, you can get ahead of it quickly.

Finally, here are some of the signs you should look for:

  • Fraud alerts from a bank or other financial institution – most banks have some type of security in place to notify them and the customer if there is something weird going on. For instance, if you are in Chicago, and your credit card is used in Tokyo, there could be a big problem.
  • Your credit score changes unexpectedly – A credit score that rises unexpectedly could mean that someone is attempting to extend your credit, and a strong dip in your score might mean that someone is trying to get a loan in your name or there is a bill in your name that has gone to collection.
  • Your financial accounts have changes – It is important to check your bank statements at least every few weeks and look for anything that seems unfamiliar to you. You should also look to see if there are any new credit accounts or lines of credit in your name.
  • You apply for credit, and you are denied – if you have a decent credit score, and you apply for credit, you probably think that you are going to get approved…. if you don’t, you should check your credit report, as someone could be up to something.
  • You get strange phone calls from a collection agency – If you start getting phone calls from a debt collector or collection agency that you don’t owe, there could be an account open in your name that you don’t know about. Check your credit report, immediately.
  • You get mail that is odd – You may also get some mail that is sent to your address that seems strange. This might be medical bills or other bills that you do not recognize.
  • Your tax filing is rejected – Additionally, you may notice that when you try to file your taxes that they are rejected. This could mean that someone has already filed in your name. If this happens to you, contact the IRS immediately.

Written by Robert Siciliano, CEO of Credit Parent, Head of Training & Security Awareness Expert at Protect Now, #1 Best Selling Amazon author, Media Personality & Architect of CSI Protection Certification.

Managing Tech Time for Your Children

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Kids used to be really happy with necklace kits, puzzles, and building blocks, but these days, they really prefer other things, including tech gifts, which can connect them to the rest of the world.

But, with these gifts, not only do they get something techy, but they also come with risks including:

  • Less sleep
  • Obesity
  • Disconnection with family and friends
  • More time focused on these gadgets
  • Higher chances of cyberbullying
  • Using the device as a surrogate parent

Even though all of this is the case, you still probably want to give your kids the best tech devices out there. So, here are some ideas that you can use to manage your children’s tech time:

Have a Family/Parent Night

Give each of your kids a “Parent night” with you and/or your spouse in order to stay away from technology for a couple of hours.

Start New Rules

You also can set new rules in the home. For example, after dinner, the first kid to reach for their phone has to clear the table and do the dishes.

Create Restrictions

You can start creating restrictions, too, and these can definitely help your kid stay away from their devices

  • When you give your kid a smart phone, you should create an agreement with them so that you always know their passwords, and they should know that you will randomly go through their phone whenever you want to.
  • Your child must also agree that you will always have access to their social media accounts, and you will check their posts whenever you want to.
  • Encourage them to get information in other ways besides the internet. For instance, make sure they know how to use a dictionary and how to find a country on a globe.
  • Limit internet use to schoolwork during the week.
  • Have a “black out” time for devices each night. You can confiscate the devices before bed, for instance, or hide them if you have some sneaky kids around.
  • If your kids’ friends come over, ban phone use in your home.
  • Limit the use of devices when your kids are in the car. Eventually, they must learn to drive, and there is a lot of distractions on their devices. Though this doesn’t guarantee that the kids won’t be distracted by other things, they can still learn a valuable lesson and get in the habit of NOT having a device within reach when they begin to drive themselves.
  • Set a good example; don’t text and drive.
  • Get your kids started in activities that don’t require the use of a phone. Do this early, so they look at it as a habit.
  • Put them in sports. It’s difficult to hit a ball or shoot a basket if they have a cell phone in their hand.
  • Have family time for activities that don’t require a phone. Examples are bike riding, hiking, board games, bowling, cooking, baking, etc. When doing these things, phones should be banned.

Some people think that these things are harsh, or to some, even impossible. But really, all of it is easy to do, and you just need to do it. You could also be protecting them from identity theft.

Written by Robert Siciliano, CEO of Credit Parent, Head of Training & Security Awareness Expert at Protect Now, #1 Best Selling Amazon author, Media Personality & Architect of CSI Protection Certification.

Protecting your Child’s Identity from Child Identity Theft

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Did your kid ever get a pre-approved credit card offer? If so, this is a sign that their identity might have been taken by a scammer. Child identity theft is when someone uses the minor’s Social Security number to commit fraud. This might include applying for benefits, opening up a credit card, or even taking out a loan. 

Child identity theft

This can go on for many years, and you might not know for a very long time. However, there are some things that you can do to keep your child’s identity safe. 

What are the Warning Signs of Child ID Theft and How it Occurs

Typically, child identity theft occurs when a kid’s Social Security number is stolen. There are many ways this can happen including from electronic data breaches and stealing official documents. Fortunately, there are some signs that this could be happening: 

  • Receiving a Pre-Approved Credit Card Offer – As said above, a pre-approved credit card offering could be a sign that your child’s credit is being used. Credit card companies only send an offer like this if they have access to your credit file. 
  • Getting Turned Down for Government Benefits – You might be trying to apply for benefits for your child when you find out you were denied. It could be because your child’s information is being used elsewhere. 
  • Getting a Notice from the IRS – If you get a letter that your child didn’t pay taxes, this is problematic, too. 
  • Getting a Call or Letter from a Bill Collector – If you get a call or letter from a collection agency for your child, there is a big issue. 

How to Protect Your Child’s Identity

Here are a few tips to protect the identity of your child:

  • Unless it is absolutely necessary, do not share your child’s Social Security number.
  • Lock away and keep your child’s info secure.
  • If you have documents with your child’s information on them, shred them before you toss them out.
  • Keep an eye on anyone in your home who might be tempted to use your child’s identity.
  • Learn about any school directory information policy. Find out if you can opt out, and then do it. 

What Should You do if You Child’s Information is Stolen

If you believe that your child’s information has been compromised, you should do the following: 

  • First, contact the top three major credit reporting companies: Experian, Equifax, and TransUnion.
  • Ask each agency to do a manual search of the Social Security number, and then do a search with the name AND the Social Security number.
  • Keep a record of phone calls and letters.

If you can confirm that your child is a victim of ID theft, immediately do the following: 

  • Contact the credit bureaus and explain what is happening. Ask them to remove any inquiries, collection notices, and accounts. You then have to show proof that the child is actually a minor. 
  • You also must contact any company where the information was used and ask them to close any accounts that are open due to ID theft. 
  • Put a fraud alert on the credit report of your child by contacting the credit bureaus. 
  • Consider putting a credit freeze on your child. This is the best way to ensure nothing happens to your child’s identity. This ensures that their credit is locked until they are an adult or until you choose to unfreeze it. 
  • Get a copy of the credit report of the child. If there is a credit report, they are very likely a victim of ID theft. If there is no report, that is good news. 
  • Report the incident with the FTC online or via phone.
  • Create a report at identitytheft.gov. 

Probably the most important tip here is to consider putting a credit freeze on your child’s credit report to protect their identity. Setting up a child’s credit freeze is a very different process than freezing an adults credit. The credit bureaus don’t make it easy, in fact, they try to make it as difficult as possible. Fortunately, CreditParent makes this process relatively seamless. For a significantly low fee, all the parent needs to do is gather their child’s information and submit it to CreditParent and they do all the heavy lifting. 

Having their identity stolen could be a bad thing for the future of your child, so take the steps now to fix it.

ROBERT SICILIANO CSP, is a #1 Best Selling Amazon author, CEO of CreditParent.com, the architect of the CSI Protection certification; a Cyber Social and Identity and Personal Protection security awareness training program.

Child Identity Theft: Protecting Your Child’s Identity

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Do you have a kid who has gotten a pre-approved credit card offer in the mail? If so, their identity might have been stolen. Child ID theft is when a person uses a minor’s Social Security number to commit some type of fraud, which can include opening credit cards, taking out a loan, or even applying for government benefits.

Child Identity Theft

Something like this can go on for years, and you might not even know it. But there are things you can do to protect your child’s identity, so keep reading.

How Does Child Identity Theft Occur and What are the Warning Signs?

In general, child identity theft happens when their Social Security number is stolen. There are plenty of ways that this can happen from stealing official documents to electronic data breaches. So, what are the signs that this might be happening?

  • Getting a Pre-Approved Credit Offer – As mentioned, a pre-approved credit card offer might be a sign that your child’s credit is at risk. A credit card company only send these offers if it has access to a credit file.
  • Getting Turned Down for Benefits – You might also be trying to apply for some type of government benefit for your child but keep getting denied.
  • Receiving an IRS Notice – Letters claiming that your child didn’t pay income taxes is a big sign, too.
  • Getting a Letter or Call About an Unpaid Bill – If a collection agency is calling for your child, there is a big problem.

Protecting Your Child’s Identity

Here are some tips for protecting your child’s identity:

  • Don’t share your child’s Social Security number unless it is absolutely necessary.
  • Keep documents with your child’s information secure and locked away.
  • Shred any documents with your child’s information before tossing them out.
  • Be aware of anyone in your household who might use your child’s identity.
  • Learn about your child’s school’s directory information policy. Can you opt out?

What Can You Do if Your Child is a Victim of Identity Theft?

If you think that your child’s information is compromised, you should do the following:

  • Contact all three major credit reporting companies: Equifax, TransUnion, and Experian.
  • Ask them to do a manual search of the file with the Social Security number and a separate search with the name AND Social Security number.
  • Keep records of letters and phone calls.

If you confirm that your child has been a victim, you need to do the following:

  • Reach out to all of the credit bureaus and explain the situation. Ask them to remove any collection notices, accounts, and inquires. You will have to give them proof that the child is a minor.
  • Contact any business where the information was used and ask them to close any open accounts due to identity theft.
  • Place a fraud alert on the child’s credit report by contacting one of the three credit bureaus.
  • Consider a credit freeze. Freezing a child credit is the best, most proactive way to prevent “new account fraud” and lock down your child’s identity until and after the age of 18. There are “do it yourself” ways of accomplishing this or they can be done for a nominal free at org.
  • Order a copy of your child’s credit report, which shouldn’t even exist if they are 17 or under. If there is a credit report, they are likely a victim of fraud.
  • File a report with the FTC by phone or online.
  • Go to identitytheft.gov and create a report.

This could be a bad thing for your child’s future, so it is very important that you take steps to fix it, right now.

ROBERT SICILIANO CSP, is a #1 Best Selling Amazon author, CEO of CreditParent.com, the architect of the CSI Protection certification; a Cyber Social and Identity and Personal Protection security awareness training program.