How to Prevent the Effects of ID Theft

According to this AICPA survey, nearly half of Americans say ID theft is likely to cause them financial loss in the next year. Here are some tips from the AICPA’s National CPA Financial Literacy Commission to help Americans prevent and mitigate the effects of identity theft. 

Monitor your credit report & set protections. You can request a free credit report from all three major credit reporting agencies once a year, including TransUnion, Equifax and Experian. Additionally, some monitoring services allow you unlimited access to your credit information year-round. These services are there to help you spot inaccuracies, potential fraud and more on your credit report. This should also be done for children. Theft of a child’s ID may go undetected for many years such that by the time they are adults, the damage has already been done.

Don’t provide your Social Security number unless it’s necessary. A space for it on a form doesn’t necessarily mean that it is required. For example, your doctor’s office may use a unique number issued by your insurance company to enter your claim but their form may have a space for SSN anyway. Don’t be afraid to ask if they really need it.

Make sure your WIFI network at home is secured with a password. A skilled data thief can access information on an unsecured network. Additionally, when away from home, avoid providing credit card or other personal information on unsecured Wi-Fi networks like those in airports or coffee shops.

Don’t provide personal information in response to any unsolicited communication. Even if the caller, text or email claims to be from a bank or credit card company needing to “verify” your account to “prevent fraud.”  If in doubt, call the number on your bank statement or the back of your credit card. 

What to do if it happens? Act quickly to limit the damage. Call your credit card company and report it to them. They will close your card and issue a new one. File a police report to ensure that you are covered for any damages that you may incur. If your Federal return is affected, call the IRS 800-908-4490 and file Form 14039 Identity Theft Affidavit.

For more information about what to do in the event of identity theft, check out this aticle here.

AICPA ID Theft Infographic REVISED (003)