Combating Identity Theft

Transcript of Podcast Episode 272

Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, Combating Identity Theft.

Despite tighter security with online transactions, such as more common use of dual factor authorization, the problem of identity theft is not going away. A recent blog by the Social Security Administration, or SSA, goes back to the basics on what you need to know and how you can help protect yourself.[1] They have encouraged people to share this information with their family and friends.

People always talk about the financial impact identity theft has. But the SSA points out that the consequences of identity theft are not just financial; they can also have significant effects on your personal and work relationships. And it’s much more difficult to measure the emotional impact it has on its victims.

There are two types of identity theft that the SSA focuses on: The indirect type, where criminals steal your data, physically or digitally, without any direct contact with you, and the direct type, deceiving you into providing sensitive information. When this happens, you might not even know how they got your information.

What are these people looking for? They start with your name and address, then they may add your Social Security number, your credit card numbers, bank account numbers, or even your medical insurance information.

So, what will  identity thieves do when they get this information? Among other things: [2]

1. They can buy items with your credit cards or bank accounts.
2. They can obtain new credit cards or accounts in your name.
3. They might use your Social Security number to get a job.
4. They can open phone or utility accounts in your name.
5. They can steal your tax refund.
6. They can use your health insurance to obtain medical care. And finally…
7. They can even pretend to be you if they are arrested.

Most banks discourage identity theft by telling people to change their passwords and monitor their credit reports. These are indeed helpful. But what else can you do? Here are a few suggestions:

• Keep track of your mail for missing bills or other documents.
• Carefully look over your credit card and bank statements to see if there are any unauthorized transactions, and finally,
• When you review your credit reports, make sure that there are no accounts you haven’t opened.

The SSA also has some other, more proactive ideas on how to prevent identity theft:

1. Protect or encrypt documents that have personal information.
2. Ask questions before giving out your Social Security number.
3. As always, use a strong password and add multi-factor authentication when it’s offered.
4. Be careful and protect your information on social networks. In other words, don’t overshare.

Even still, there is no perfect way to prevent being a victim of identity theft. So, what should you do when you think someone may have stolen your identity? Here are some ideas:

• Immediately report the violation to the company where it occurred.
• Get in touch with a credit bureau to place a fraud alert on your credit report.
• File a complaint with the Federal Trade Commission at FTC.gov., and…
• File a police report.

Furthermore, the SSA asks you to report any Social Security fraud, including imposter scams, to the Office of the Inspector General. They have a special website set up for this, which is https://oig.ssa.gov/report/.

When it comes to artificial intelligence (AI), there is both good news and bad news. AI gives scammers the opportunity to do something new: Create a fake identity from scratch, then apply for a loan for someone who doesn’t exist. But at the same time, AI is also being used by some financial institutions to combine information from multiple sources—personally identifiable information, credit report info, and online activities—to help curb fraudulent transactions.[3]

The problem of identity theft has been around for over a century, and it seems like it’s only getting worse. You need to do whatever you can to protect yourself against it, because it can ruin your credit and cost you a great deal of time and money, not to mention the emotional toll that identity theft can cause.

[1] Majestic, Mark. “Protect Yourself from Identity Thieves.” ssa.gov. https://blog.ssa.gov/protect-yourself-from-identity-thieves/ (accessed Feb. 19, 2024)

[2] Majestic, Mark. “Protect Yourself from Identity Thieves.” ssa.gov. https://blog.ssa.gov/protect-yourself-from-identity-thieves/ (accessed Feb. 19, 2024)

[3] Xie, Yinglian. “Is Identity Theft Fraud? Here’s How AI And Graphing Tools Help Solve The Puzzle.” forbes.com https://www.forbes.com/sites/forbestechcouncil/2021/09/30/is-identity-theft-fraud-heres-how-ai-and-graphing-tools-help-solve-the-puzzle/?sh=6302adda7845  (accessed Feb. 19, 2024)

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