Tips to Protect Identity Against Fraud

As data breach incidents proliferate, a new AARP survey finds that an alarming number of people have failed to take the basic precautions against identity fraud. In response, the AARP Fraud Watch Network today launched a campaign to raise awareness of identity theft risks and educate consumers on how to enhance the safety of their personal information.

Reports of data breaches have become commonplace — from Equifax one year ago, to Target, to Uber, to Home Depot. According to the Privacy Rights Clearinghouse there have been more than 2,000 data breaches since 2015, impacting over 7 billion records. And an eye-opening cover story in the September edition of the AARP Bulletin explains how some of this hacked personal information can end up for sale on the Dark Web.

While some security experts say almost all consumers have likely been affected in some manner by a data breach, AARP’s survey shows that many put themselves in even higher jeopardy due to their risky online behavior:

• Password Re-use – Nearly half (48 percent) of adults have used the same password for more than one online account.
• Bank Account Access – Only four in 10 (43 percent) respondents reported having online access to all of their bank accounts.
• Credit Report – About half of adults (47 percent) reported that they have experienced fraudulent charges on their credit or debit card, yet very few (14 percent) have ordered a security freeze on their credit report.
• Digital ID Know-How – Seven of 10 adults (73 percent) failed a quiz testing their “digital identity IQ”.

“Our survey results indicate that a lot of people may feel overwhelmed, and have just given up,” said AARP’s lead fraud researcher, Douglas Shadel, Ph.D. “Two-thirds of those surveyed said that given the number of data breaches that have occurred, they think it is inevitable that criminals will be able to exploit their credit at some point. But we are emphasizing that there are powerful things you can do to make sure that stolen data can’t be used against you.”

The AARP Fraud Watch Network campaign recommends people take these three steps to protect their digital identity:

• Order a Freeze – Put a security freeze in place with the three credit reporting bureaus so that no one can access your credit file or open a new credit account with your information. For a guide to the process, visit www.aarp.org/CreditFreeze. Traditionally there has been a fee for placing a freeze on your credit report, but beginning later this month the process is freethanks to legislation passed by Congress in May.
• Set up Digital Access – Set up online access to all of your financial accounts – bank accounts, credit cards, 401(k)s, etc. — and regularly monitor the accounts so you can stay up-to-date on all transactions and recognize any fraudulent activity that may occur.
• Use Separate Passwords – Make sure you use unique passwords for each of your online accounts. That way, if one account is hacked, it does not put your other accounts at risk. A good way to manage all of those unique passwords is to use a digital password manager. These services keep all your passwords secure and help you create different, strong passwords for each of your online accounts.