Identity Theft – Don’t Get Swindled

Identity theft is on the rise, and Americans are in more danger than ever before. Account takeovers are gaining ground in the criminal world. An account takeover is when a thief or con man accesses your accounts and changes your passwords, and you’re locked out of your own online presence, including banking. A real-life nightmare. Account takeovers have increased 61 percent since 2015 and resulted in $2 billion in losses.

According to research by The Harris Poll, this year nearly 60 million Americans have been affected by identity theft. The same survey indicated that a far smaller amount of consumers experienced identity theft last year – just 15 million. Another study found that if you are active on social media you have an increased risk of being targeted for identity theft because you are more exposed. 

Make sure that you take extra care of your important documents and Social Security number. File them away safely and securely and shred any paperwork that is going out that may have any personal details on it. If you don’t, you may end up being a victim of identity theft and fraud. 

The Federal Trade Commission discovered that there are six different types of identity fraud:

1. Employment or tax-related fraud: When a criminal uses your Social Security number as well as other personal information, they are able to get a job or file an income tax return but use your identity to do it.
2. Credit card fraud: A situation where a thief uses your credit card or credit card number to buy things.
3. Phone or utility fraud: A criminal uses your personal information to open a wireless phone or utility account. You could end up with huge bills and bad credit if this happened to you.
4. Bank fraud: The fraudster uses your personal information to take over an existing financial account or to open a new account in your name.
5. Loan or lease fraud: A borrower or a lessee uses your stolen personal information to obtain the loan or lease.
6. Government documents or benefits fraud: The criminal uses the personal information they stole from you to obtain government benefits.

There are a few things to watch out for to make sure that you don’t get swindled. Depending on where you live, you may be at greater risk. Florida has the highest per capita rate of reported fraud.

According to the Federal Trade Commission’s online database of consumer complaints, more than half of the fraud-related complaints mentioned the way the victim was first approached. 77 percent were contacted by phone.

So, if you get a strange call asking questions about your passwords, just hang up. Eight percent were first reached by email, so be wary of emails asking you about your money or your banking habits especially if they want passwords or access to your accounts.  Only three percent were contacted by regular mail. Stay as safe as you can, and make sure your private information is kept private.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc.

This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

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Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC