3 Essential Steps to Protect Yourself from Identity Theft
March 17, 2025
In today’s digital world, identity theft is more common than ever. Criminals use stolen personal information to open credit accounts, file fraudulent tax returns, or even impersonate victims in financial transactions. Protecting your identity requires vigilance and proactive measures. Here are three essential steps you should be taking to safeguard your personal information and reduce your risk of becoming a victim.
1. Use Strong, Unique Passwords and Enable Two-Factor Authentication
One of the easiest ways for cybercriminals to steal identities is by gaining access to online accounts through weak or reused passwords. To protect yourself, create strong passwords that include a mix of letters, numbers, and symbols. Avoid using easily guessed information like birthdays or names, as hackers often exploit publicly available details. Using a password manager can help generate and securely store unique passwords for each account, reducing the likelihood of breaches.
In addition to strong passwords, enabling two-factor authentication (2FA) provides an extra layer of security. With 2FA, logging into an account requires not only a password but also a secondary verification method, such as a code sent to your phone or email. This significantly reduces the risk of unauthorized access, even if a hacker obtains your password.
2. Monitor Your Financial Accounts and Credit Reports
Identity thieves often go undetected for months because victims don’t regularly check their financial statements. One of the best ways to catch fraudulent activity early is by reviewing bank and credit card statements monthly. If you notice any unfamiliar transactions, report them to your financial institution immediately. Setting up transaction alerts with your bank is another effective way to stay informed. These alerts notify you of any large or suspicious transactions, allowing you to take immediate action if something looks off.
In addition to monitoring transactions, regularly checking your credit report can help you spot signs of identity theft. In the U.S., you are entitled to a free credit report annually from each of the three major credit bureaus—Experian, Equifax, and TransUnion—via AnnualCreditReport.com1. Reviewing your credit report can reveal unauthorized accounts or inquiries that indicate fraudulent activity. If you don’t plan on applying for new credit anytime soon, freezing your credit is a proactive step to prevent criminals from opening accounts in your name.
3. Be Cautious with Personal Information Online and Offline
Scammers use various tactics, including phishing emails, phone calls, and social media deception, to steal sensitive data. One way to protect yourself is by avoiding phishing scams. Never click on links or download attachments from unknown or suspicious emails, as they may contain malware designed to steal your information. If you receive an unexpected request for personal information from what appears to be a legitimate company, verify it by contacting the company directly rather than clicking on email links.
Social media is another channel where fraudsters gather personal details to impersonate victims or bypass security questions. Be mindful of the information you share online, especially details like your birthdate, hometown, or pet’s name—common data points used in security verification. Also be sure to clear the memory of any laptops or hard drive before recycling them. Scammers can retrieve files, photos and other information from the computer you might have generously donated or recycled. Offline, take precautions by shredding sensitive documents, such as bank statements, medical records, and credit card offers, before discarding them. Identity thieves often rummage through trash to find valuable information that can be used for fraud.
While identity theft can’t always be prevented, following these three steps significantly reduces your risk. Affinity is also here to help with our Fraud Prevention Hub2 if you are affected by fraud or have more questions!
This information is for informational purposes only, is intended to provide general guidance, and does not constitute legal, tax, or financial advice. Each person's circumstances differ and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and legal counsel to discuss your particular needs before making any financial or other commitments regarding the matters related to your condition.
1 Retrieved from: https://www.annualcreditreport.com
2 Retrieved from: https://www.affinityfcu.com/fraud-prevention-hub/