What Is Identity Theft and How to Prevent It

Introduction

Identity theft happens when someone steals your personal information and uses it to open accounts, make purchases, or commit fraud in your name. It can damage your credit and take months to fix. The good news is that a few simple habits can protect you.

How Identity Theft Happens

Thieves use many tricks. Phishing emails and texts pretend to be from banks or companies and ask for personal information. Data breaches at companies can expose millions of people's information. Thieves may also steal mail, use public Wi-Fi to spy on activity, or trick people over the phone. Young people are often targeted because they may not check their credit.

Protect Your Information

Never share your Social Security number unless absolutely necessary. Use strong, unique passwords and turn on two-factor authentication for important accounts. Be suspicious of messages asking you to click links or share personal details. Shred documents with personal information before throwing them away.

Watch for Warning Signs

Check your bank and credit card statements regularly for purchases you did not make. You can check your credit reports for free at AnnualCreditReport.com. Freezing your credit with the three major credit bureaus is free and prevents thieves from opening new accounts in your name.

Conclusion

Identity theft is a real threat, but you have the power to protect yourself. Build these habits now, and you will keep your financial future safe!