Having your identity stolen can be catastrophic. That’s why it’s crucial to be proactive when it comes to safeguarding your personal information. Scammers are effective at stealing your identity via your computer, on your smartphone and unsecured internet connections. As enticing as cash in your wallet might be, scammers and thieves today are more interested in harvesting, using, and selling your identity. They want to cash in on something more valuable: your credit history.
Why Your Credit Matters to Scammers
Your credit cards, driver's license and other forms of identification can become a scammer’s ticket to accessing your personal wealth. They can use your information to conduct a slew of fraudulent activities that can have a devasting impact on your credit score. This includes:
- Late payments. Once scammers have your credit card information, they are going to rack up as many purchases as they can. Also, they aren’t going to be concerned about making payments on time. Late payments can affect your credit score in a hugely negative way. They also can impact your score for years.
- Increased credit utilization. There’s a good chance that if your personal info falls into the wrong hands, your credit cards are going to be maxed out. Or a lot of accounts are going to be opened in your name. This will increase your credit utilization ratio, which can lower your credit score as it indicates you are reliant on borrowing money.
- Hard inquiries. If a thief or scammer applies for credit in your name, a hard inquiry will be made on your credit report. Multiple hard inquiries during a short period of time can negatively impact your credit score. To lenders, you may appear to be a higher-risk borrower due to often applying for credit.
Remember, your credit history is used to determine whether you can get a loan and how much you will have to pay to borrow money. A poor credit history can impact your ability to rent a home or apartment, get insurance and even land a job. That’s why protecting your identity and credit is so important.
3 Signs that Your Identity has Been Stolen
If you don’t regularly monitor your credit reports, you need to make it a habit. Doing so can help you protect your credit and respond more quickly if you do become a victim of identity theft. Here are three common indicators on credit reports that something might be amiss.
- Unfamiliar or unauthorized charges. Keep a close eye on your credit card and bank statements. If you notice charges you didn’t make, that could be a sign your identity has been compromised.
- Inquiries you didn’t make. If there are hard inquiries on your credit reports that you didn’t initiate or authorize, someone could be trying to open accounts in your name.
- Unknown accounts. If accounts appear on your credit reports that you didn’t open, you’ll want to investigate them. It could be an indication that your information was stolen.
Identity theft is rampant. And it doesn’t just happen with in-person theft. Online thieves are becoming ever more effective at stealing your identity online through your computer, on your smartphone and even at unsecured retail locations. Identity thieves have even figured out how to take a few key pieces of information and file a tax return in your name, claiming your refund before you realize you’ve been hacked.
How to Protect Yourself from Identity Theft
More than ever, it’s crucial to be hyper-vigilant and proactive about protecting sensitive information. That includes learning about how common scams work and staying up to date on the latest ways that scammers try to trick people. A little extra caution can end up saving you a lot of financial headaches, because recovering from identity theft can be time-consuming and difficult. So, the best defense is to stay one step ahead of thieves.
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Monitor your credit reports. Each year, you can request a free copy of your credit report from three credit reporting agencies: Experian, Equifax and TransUnion. There are many websites that offer “free” reports. Often, these come with strings attached. Only one website is authorized to fill orders for the free annual credit report you are entitled to under federal law: annualcreditreport.com. We recommend checking your report with a different credit reporting agency each quarter - for example, Experian first quarter, Equifax second quarter, and TransUnion third quarter.
If you find inaccurate information on your credit report, or if you see evidence that someone has been using your credit without your knowledge, report it immediately to your lender, and the credit reporting agency. Disputes can be filed through annualcreditreport.com also. -
Use strong passwords. It’s important to safeguard your online accounts. Create passwords that are mix of uppercase and lowercase letters, and that include numbers and symbols. And the longer a password, the better. Pro tip: Use phrases that are special to you as a password. For example, a lyric from a favorite song. Also, when possible, use multifactor authentication to add an extra level of security.
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Go paperless. Mail theft is a common way for thieves to steal the information they need to open accounts or apply for loans in your name. Think about how many documents containing sensitive information still get mailed to you – from your bank or insurance company. Provide fewer opportunities for your personal information to fall into the wrong hands by opting out of paper statements. But again, make sure your online accounts are extra secure.
How TwinStar Can Help You Guard Against Identity Theft
At TwinStar, we are committed to helping you protect your identity and financial accounts. Here are several services we provide members for increased peace of mind.
TwinStar Fraud Prevention Services
This TwinStar Visa Card service screens your card activity 24 hours a day, 7 days a week, looking for suspicious activity. If you have a trip planned, visit your local branch or call us at 800.258.3115 and let us know when and where you'll be going. Using your card in certain areas may trigger a block on your card, so we want to update your information and keep the card from being blocked in error.
If your card gets blocked, contact TwinStar Fraud Prevention Services at 866.272.4481 to authenticate the transaction(s) and unblock your card. Toll-free numbers for dozens of countries can be found here (PDF link).
TwinStar’s Fraud Defender
TwinStar has partnered with Fraud Defender for fully managed identity recovery services if you suspect identity theft for any reason, or your personal information has been compromised. TwinStar checking account holders may choose to have Fraud Defender added to their accounts for $2.95 per month. For more information about Fraud Defender, visit TwinStarCU.com/fraud-defender.
If you ever have any concerns about your TwinStar accounts, don’t hesitate to call us at 800.258.3115. We are here to help!