What is identity theft?
In general, identity theft is the unauthorized access to an individual's personal information.
If you want to know more, check out this article - What is identity theft?
Nearly half of identity thefts take place digitally - 46%. The main reason for this statistic is massive data breaches, which occur almost every year.
Once your information is stolen, it can be used by the thief himself, or sold on the dark web. Prices vary from 2.29 dollars for a $1,000 email address for a complete medical record.
When stolen information is used for financial purposes, it is identity fraud.
The bulk of this article will focus on digital ways to steal an identity and tips for countering these attempts. But we can't get to the bottom of the whole problem if we don't take a look at analog methods of stealing personal information and how to prevent them.
Physical identity theft
Let's start with the physical prevention of identity theft:
The most common ways of physically impersonating an identity are as follows:
Dumpster diving
This term is used for people who dig through your trash looking for useful data.
To prevent identity theft, you should shred all documents that contain personal information of any kind, instead of throwing them away. The next time you are about to throw such a document in the trash, remember this.
Look over your shoulders
It applies to situations where someone is literally looking over your shoulder to see your credentials. It is more effective in crowded places. Research shows that 91% visual hacking attempts around the world have been successful.
Instead, you should use biometrics where possible. Avoid having to enter personal information when people are behind you or when a camera is previewing your screen. An essential way to protect your identity is to be aware of your surroundings.
Of course, there is the good old fashioned form of theft, and thieves can attack your documents as well as your valuables.
One of the main causes of identity theft by analogy is the loss or theft of your wallet. Protect it well and keep only the essentials inside (you can only carry one credit card, not all in one place, right?)
Digital identity theft
Now let's continue with the main focus of this article. We will now focus on methods to prevent identity theft and ways to counter the various digital identity theft schemes.
The most common ways for a cybercriminal to get hold of your personal data are as follows:
Piracy
The infamous data breaches. A hacker, or a group, can break into an institution, business, or organization and steal sensitive information.
Spamming
Often masked as an advertisement, this email encourages the user to click on a link or download a file that will install malicious software on their device.
Phishing
Email scam. The identity thief impersonates a genuine organization, institution, or agency. This attack leads users to a facsimile of the real website, which nevertheless asks for personal information.
Man-In-The-Middle
Typically, that means someone is standing between your device and your Internet connection. It can record everything you do online, including entering your credentials. This is also called “eavesdropping.”
Keylogging
Exactly what it looks like. It's malicious software that records every keystroke. A hardware version is also available. In the recent past, it has been used on cash machines to steal pin codes. If you want to know more, do not hesitate to consult our Explanation of keyloggers.
If you want to know more about cyber attacks in general and how to protect yourself, check out our article” What is a cyber attack?“.
So we've laid the groundwork: now you know what identity theft is and how a hacker can commit it. Now let's look at how to prevent identity theft.
How do you prevent identity theft?
Let's start with the essentials:
- No financial institution will ever ask you to provide your personal information via email.
- Never give out personal information in calls or emails that you did not originate from.
- When reading an email, make sure the sender is legitimate. Sometimes an entire letter or word won't be the same as the original. Also, keep in mind that an uppercase “I” and a lowercase “L” look very similar.
- Be careful with the free Wi-Fi. Someone could “listen at the doors.” Avoid entering personal information, like connecting to your bank account, when using free Wi-Fi. Use a VPN for free Wi-Fi networks.
Of course, these tips don't guarantee total identity theft prevention, but it's a start. We want to force criminals to go through as many obstacles as possible, don't we? Now let's look at some of the most common ways to protect yourself.
- Choose strong passwords for all of your accounts or use a password manager with password generation function. For instructions on how to do this, see my guide”How do I create a strong password? “.
- Use antivirus software and a firewall and keep them up to date.
- Don't share too many photos on social media. Sometimes a photo may contain some sensitive data.
- Place mobile/email notifications on your credit cards.
- Keep an eye on your bank and credit accounts. If you notice charges that you are not aware of, contact the bank immediately.
- Secure your devices to avoid identity theft. Use at least one screen lock.
- You can place a security freeze on your credit report if you have no plans to open new accounts in the near future. This will prevent anyone from creating new accounts using your personal information.
- Finally, you can benefit from an identity theft protection service. It's arguably the best security you can get.
These methods are available to all users and most of them cost absolutely nothing, except a tiny bit of your time. By the way, now that I've talked about time, there's something you need to know. On average, the average victim of identity theft passes 7 hours, and up to 1200 (in extreme cases) to solve the problem. Following this guide is a good investment of time to put an end to identity theft.
Advanced protection options are also available if you really want maximum protection.
Two-factor authentication (2FA)
This is a two-step verification process. Not only will you need to enter a username and password, but also a one-time code from a cell phone or other device. It is not available on all sites. For those who don't have a 2FA system, use strong passwords or a password manager.
3D Security for credit/debit cards
3D secure is a technical standard, developed by Mastercard and Visa. It adds an extra layer of protection when shopping online. When you make your online purchase, the service asks for a personal code, most often a single-use PIN, which is sent to you by text message or email. So, if someone has stolen your identity, they won't be able to make online purchases with your credit card.
Anti-malware software
Unlike antivirus software, which is created to protect us from viruses (only a type Of malicious software), anti-malware software can stop a greater number of malware attacks. These include phishing, spyware, ransomware, etc. Think of it as antivirus software on steroids.
Identity Theft Protection Services
Several companies offer their customers protection against identity theft. They monitor the activity of your cards and accounts and alert you to anything suspicious. Most of them also reimburse you if you are a victim of identity theft.
Summary.
Preventing identity theft is relatively easy if you've read all of the above. Most identity theft is committed by people who are not aware of the threat and therefore do not know how to protect their identity.
Every year, children, elderly people, and even deceased people have their identity stolen. You should try to protect not only your identity but theirs as well. It can be tricky, I know it, but it pays off.
Hopefully we've helped you in your quest for better digital security.
Now that you know how to prevent identity theft, I hope you'll pass that knowledge on, so we can make the web a safer place.
