Identity Theft: How to Protect Yourself and Take Action if You’re Targeted

My name is Brian Scribonia, and on this episode of the Common Sense Financial Podcast. Now, I'm not trying to be an alarmist, but it is impossible to keep your data private only to yourself. I mean, if you just file a simple tax return, that alone is releasing your data into the world. Your identity is you and your credit is one of the most valuable assets you have. So knowing this, it's worth taking steps to protect yourself.

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Opportunities are still there. The attempt at passing down wealth from generation to generation. Consider the outcome, not just popular opinion and the whole teaching there is about preparedness and being ready. There's a difference between what's real and what's true. You're listening to the Common Sense Financial Podcast. I'm your host, Brian Scribonia. Thanks for tuning in and let's get into today's topic. A few years ago I received a voicemail from Home Depot informing me that my special order had been received at the store and is ready for pickup. The problem is that I had not ordered anything from Home Depot. So as you can imagine, I was a bit alarmed and confused by the voicemail and immediately called the store nearly an hour away from me to find out what was going on. The person who answered the phone was really just as confused as I was and tried to convince me that I did in fact place the order. I proceeded to ask for the store manager, who of course wasn't available at the moment, but I did finally get connected to the manager and I clarified that I did not place this order, which was paid in adv, in my name, on my credit card account. I won't bore you with all the finer details of the conversation, but apparently the thief arrived at the store and somehow was given my account number without showing a driver's license or the actual card. After some back and forth, they did tell me that they had some video footage of the thief, and there was a police report that can provide the footage. And I thought, yeah, this is great. This is perfect. So in between calls with the store and getting the police reports submitted, I contacted the credit card company and told them what had happened. I submitted a fraud report for the thousands of dollars that was charged and told them to cancel the card. A little time goes by without hearing from anyone. And I followed up with the credit card company who at that moment informed me that there were thousands more charges applied to the credit card. And I said, that's funny, because I filed a fraud report and I requested the card to be canceled and have never stepped foot in that store where the charges had been made. They didn't have a good answer for me. And I asked again for the card to be canceled, and they assured me it was now canceled. And another fraud report was submitted. So at this point, there's thousands of dollars charging my Home Depot credit card, and I still haven't heard anything from the police department. So when I called the police department to follow up, I kind of think they hid their laugh with a cough as they explained that they were investigating the report and the detective would be in touch. Well, I never heard anything again. And if things couldn't get worse, I received a phone call from a truck rental company who asked me when I was going to return their truck that I had rented the week prior. I explained that I had not rented a truck and asked them if they collected a driver's license from the person renting the truck, since that is standard procedures before a company hands over the keys to a vehicle that is theirs. Well, they didn't get a driver's license and they had nothing on their file. And I asked them if they had cameras in their store, and they said yes, but they don't work. So at this point, I'm thinking that this is all just one big joke. So I reported this incident to the police department, which was in a different district, and had to explain to them the whole story of what had happened. And they said that the detective would be in touch. Well, never heard from the detective. Now, I'm not saying that the police aren't doing their job or trying to be critical of them. I 100% support law enforcement. But it just proves to me that this is such a common occurrence that they don't have time to thoroughly investigate any of this. And at the same time, though, I do wish that I would have heard from them. But it is a lesson that we are on our own. When it comes to protecting our identity. So I did get a call from the rental company who informed me that they found the truck that was parked in a subdivision with the keys in it. That seemed to be resolved. At least they got their truck back through this whole thing. I never received an alert from the credit monitoring company that I subscribed to for years and reached out to them to ask why I wasn't alerted to the situation. And they said that since my information wasn't used to open a new credit card, they wouldn't have known to alert me. That was not what I wanted to hear, but it made sense. And when I asked them if they could provide some support with everything that was going on, I was told there was nothing they can do to help me. So at this point, I'm just feeling defeated. The police weren't helping, the monitoring company wasn't helping me, and the credit card company kept approving charges. All I could compare it to, it was like going to an emergency room with a serious issue and you're told to fill out a chart and have a seat while you sit in pain. This apparently happens so frequently that everybody is just viewing this as another day on the job. But for me, it was a big deal and I just wanted someone to help me get this resolved. I wanted this thief caught and held accountable for what he was doing. I was waiting for the call to inform me that the crook was found and the situation was resolved. Well, I never received that call, but I did get another statement from Home Depot with new charges. So if you're keeping track, this was the third charge under another account number in my name, of which I asked that card to be canceled. It really, truly was unbelievable. I called the credit card company to re explain everything to them again and asked how the thief was still able to keep charging onto my card. After I was on hold and transferred around from department to department, I finally got someone on the phone who acted like they knew what was going on. And she explained to me that if you cancel a card and a charge is applied onto that card, they assumed it was charged before the cancellation, and the system automatically opens a new card with a different account number. Now, I'm not sure how long I sat there in silence trying to process what she said. But I was thinking that what I just heard was a ridiculous policy to have when a fraud alert is placed onto an account. The good news is, is that she flipped a magic switch in their system that I guess was hidden from everybody else that I had spoken with that actually did Close the account. That was a few years ago, and I haven't thought much about the experience until recently. I received a notification from the monitoring company that informed me that my information was found on the dark web. And then I also began receiving notifications from one of the banks that I use, alerting me of failed login attempts. So I thought, here we go again. So I immediately swung into action. But when this is happening, you kind of scratch your head thinking, okay, what am I supposed to do? It's all very urgent. Which is why I decided to record the show for you to share what I learned to help you be more prepared if you find yourself in this situation. One thing you can do right now is you can visit the credit reporting website, such as Experian's or TransUnion to set up an account. These companies can perform searches that go deep into the web and find where your information is posted. They informed me that my information was on a lot of sites and suggested using their service. Of course, that is a subscription based service to request the information or be removed. How effective is this? I really don't know, but I don't think it can hurt to make the request. The reality is, is that identity theft continues to be a growing problem and millions of people each year find themselves having to deal with these thieves. So this shouldn't be viewed as something that happens to other people. My suggestion would be to assume it will happen at some point and try to be prepared to defend yourself when it does happen. Our personal and financial information is stored all over the Internet, which makes it relatively simple for criminals to steal data and wr havoc on unsuspected individuals like you and me. The government, credit companies, financial institutions, insurance companies, they all have our data. And knowing that there are security breaches happening all the time with these big data companies, you just want to be on guard. Because with just one piece of sensitive data, a thief can create a cascade of fraudulent activity. Now, I'm not trying to be an alarmist, but it is impossible to keep your data private only to yourself. I mean, if you just file a simple tax return, that alone is releasing your data into the world. Your identity is you, and your credit is one of the most valuable assets you have. So knowing this, it's worth taking steps to protect yourself. So the first thing on the list are passwords. Passwords are like keys. They are to help keep something of value behind a door. It doesn't prevent a criminal from getting access, but it makes it more difficult. What you're doing with these steps is not to prevent your information from being used, which would be ideal, but you're just trying to make it more difficult. The problem is, is that most of us have dozens of passwords that we use and it's a lot to keep track of. And to help simplify this, there's a temptation to use simple passwords or reuse them across multiple sites. It's convenient, but it also opens the door for making a bad situation worse when someone can learn a password than use it to enter into multiple accounts or websites. We've heard it before, but using strong, complex passwords are one of the simplest ways to protect your accounts. This means using a combination of number symbols and upper and lowercase letters and avoid the temptation to familiar names or birth dates. Ideally, every account you have should really have a unique password that you can change periodically. Another thing too is this two factor authentication, which can be a little irritating for yourself at times, but it really is an excellent tool because with it you're adding a layer of security that goes just beyond your password. After entering your password, you're prompted for a secondary form of verification. Often a code is sent to your phone or email, and this means even if someone were to steal your password, they still can't get into your account without that second step. So social media is also a gold mine for identify thieves to see what you post and say about yourself, as well as what you're entering into the system behind your password. There's many stories I hear about someone learning that their Social Security or social media account was taken over. A thief breaks into the account, they change the password on you, and they take over your identity and gain access to all your friends, connections, pictures and other details pertaining to you. And then you can't get that back. These social media companies won't just assume that you're telling them something that's accurate and you just have to start over. Be cautious about sharing personal data in these systems, like your full name, address, or even vacation plans online. Even without logging into these accounts, it's amazing what people share about their travel plans, family and other details. Scammers use this type of information to build a profile, and before you know it, your identity has been pieced together. And when it comes to paperwork, don't just toss out documents like bank statements or tax returns into the trash. You really should be shredding anything with sensitive information to prevent dumpster diving thieves from getting a hold of crucial details, as well as just randomly emailing a document through your Gmail or other email service provider that has important information on those documents. As I explained in my own story, it's a good idea to monitor your credit report. Everyone is entitled to a free credit report once a year from each of the three major bureaus. So you have Equifax, Experian, and TransUnion. You can pull your credit reports and look for accounts or inquiries that you don't recognize. These could be signs that someone's trying to open new credit in your name. It's a good idea to pay close attention to your bank and credit card statements. Look for transactions you didn't make, no matter how small. Thieves I'm told anyways, that thieves often begin by making minor purchases to see if they go unnoticed before escalating. If you see something suspicious, of course, contact your finance financial institution immediately. When making purchases online or logging into sites, always ensure that that website you're using is secure, and you can identify a secure site by looking at the URL. That's the long stream of information across the top. The URL should have HTTP and it have an S behind it and a padlock symbol in the address bar. These two things indicate that the site encrypts your information, making it harder, not impossible, for criminals to intercept it. And of course, while on public WI fi, it's convenient, but it's not a place to be checking bank balances or making financial transactions really to be used at all. In my opinion. Public networks are notoriously insecure, making it easy for hackers to gain access to your personal data. I use my cell phone hotspot when traveling and never use public WI fi. And if you must conduct financial transactions away from home, even at home, use what they call a VPN or virtual private network. It just adds an extra layer of protection and services like ExpressVPN, amongst others. They help cloak your identity online by routing your IP address around the world or to different servers that aren't linked back to you. Phishing scams are another common way identity thieves operate. These scams often involve fake emails or messages that appear to be from legitimate companies asking you to click on a link or provide sensitive information. One click on a link can install software onto your computer that tracks your keystrokes and the sites you visit, and following a link, then attempting to log into that fake site can be like handing over the keys to your account. Always double check the source before clicking on anything or sharing personal details. Even with the best precautions, identity theft can still happen, but being aware of these things can at least help you not be a victim as easily as I experienced. Even when you're dealing with a situation in real time, the thieves just seem to be one step ahead of you the whole time. And the police, the card companies don't offer much help or even hope. Once you've identified fraudulent activity, it's really time to start reporting it. Begin by contacting your bank or credit card issuer to let them know about the suspicious transactions. One other thing I was told when my card was being used was to file a report with the Federal Trade Commission, the ftc through their website. Not crystal clear why, but they did have information there that offered tips and suggestions. And as I did, you will need to file a report with your local police department to document the theft so you can report it to your credit card company. Credit card companies won't hold you responsible, at least they're not supposed to for charges that are proven to be fraudulent. Contacting the credit bureau is another important step. You can place a fraud alert on your credit report, which tells potential creditors that they need to verify your identity before opening any new accounts in your name. This can stop further damage from being done while you sort things out. You can also freeze your credit altogether. And a credit freeze is supposed to prevent any new creditors from accessing your credit report, making it more difficult for identity thieves to open accounts in your name. Fortunately, freezing your credit is free, relatively easy. You just need to contact each of the three major credit bureaus like I've already said, Equifax, Experian and TransUnion. Either online or by phone. You'll be asked to provide some personal information, including your Social Security number and birth date to verify your identity. Once your credit is frozen, you'll receive a PIN or a password that you can use to temporarily lift the freeze if you need to apply for credit or a loan. While many of these steps can be done on your own, there are also identity theft protection services available that offer additional security. I use two different services, even though they were of no help when my card was being used. But if someone steals your identity or opens new credit accounts, they're supposed to assist in getting that situation resolved and typically have a cap on how much money they're willing to spend to help you out. I'm telling you, identity theft can be frustrating experience and a ridiculous process and there's no proven way to prevent it entirely. But you don't have to make it easy. It is a risk we all face, but let's not be the low hanging fruit that they're all looking for. I really do hope this helps that concludes today's show. I'm Brian Scribona and thank you for listening to the Common Sense Financial Podcast. Thanks for listening to today's show. If you liked what you heard, be sure to subscribe on YouTube and Spotify so that you can receive notifications when we release new episodes. I'm Brian Scribonia and this is the Common Sense Financial Podcast.

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