Identity theft is the act of obtaining someone else's personal information, such as your National Insurance number, bank account details, credit card numbers, or other financial information, to commit fraud or other crimes. This stolen information is often used to open new accounts, make purchases, or gain access to the victim's existing accounts, leading to significant financial loss and damage to the victim's credit and reputation.
By taking the steps below, you can significantly reduce the risk of becoming a victim of identity theft.
How to prevent identity theft
- Protect personal information: Be cautious about sharing personal details, especially on social media and over the phone. Only share sensitive information with trusted companies and through secure channels
- Use strong passwords: Create complex passwords that are hard to guess. Avoid using easily accessible information like birthdays or simple sequences. Consider using a password manager to keep track of your passwords
- Monitor financial accounts: Regularly check bank and credit card statements for unauthorised transactions. Set up alerts to be notified of any suspicious activity
- Shred documents: Shred any documents that contain personal information before discarding them. This includes bank statements, bills and credit card offers
- Secure devices: Keep your computer, smartphone and other devices secure with up-to-date antivirus software, firewalls and encryption. Avoid using public Wi-Fi for transactions involving personal information
- Be cautious online: Only shop on secure websites (look for HTTPS in the URL). Avoid clicking on links or downloading attachments from unknown or suspicious emails
- Review credit reports: Obtain and review your credit reports regularly from the three major credit bureaus (Equifax, Experian, and TransUnion) to check for any unauthorised accounts or activities
- Use two-factor authentication (2FA) or multi-factor authentication (MFA): Enable 2FA/MFA on accounts where available to add an extra layer of security beyond just a password
- Stay informed: Be aware of common scams and phishing tactics. Educate yourself on the latest trends in identity theft and how to protect against them
- Freeze your credit: Consider freezing your credit reports, which prevents new creditors from accessing your credit information, thus stopping new accounts from being opened in your name