When Identity Theft Strikes: Protecting Yourself and Your Finances

In today’s digital age, our personal information is more accessible—and vulnerable—than ever. Identity theft can strike anyone, often with little warning, and the consequences can feel overwhelming. The good news is that there are steps you can take to protect yourself and recover if your identity is compromised.

Here’s what you need to know to act quickly and effectively.

Recognizing Identity Theft

Identity theft occurs when someone uses your personal information—such as your Social Security number, credit card details, or bank account information—without your permission. This can lead to unauthorized purchases, drained bank accounts, or even fraudulent loans taken out in your name. According to IdentityTheft.org, there is a new victim of identity theft every 22 seconds. Unfortunately, this is a reality millions of people face, so it’s key to know what to look out for.

Some common signs of identity theft include:

• Unfamiliar charges on your credit card or bank statements
• Missing bills or notices of accounts you didn’t open
• Notifications of credit inquiries you didn’t initiate
• A sudden drop in your credit score

If any of these occur, it’s crucial to act quickly to minimize the damage.

What To Do If You’re a Victim

Dealing with identity theft can feel daunting, but breaking it down into actionable steps can make the process more manageable. One of our financial coaches can assist you in understanding the process and tackling it one step at a time.

Contact the fraud departments of the companies where the unauthorized activity occurred. Explain the situation, request to freeze or close the accounts involved, and ask for proof of the fraudulent transactions.

Reach out to one of the three major credit reporting agencies—Equifax, Experian, or TransUnion—and request a fraud alert. This notifies potential creditors to verify your identity before extending credit. Alternatively, consider a credit freeze, which prevents any new credit accounts from being opened in your name.

Visit IdentityTheft.gov to file a report with the Federal Trade Commission (FTC). This generates a recovery plan tailored to your situation. You should also file a police report, as some creditors may require it.

Federal law allows you to access one free credit report annually from each of the three credit bureaus through annualcreditreport.com. Currently, each credit bureau is actually allowing you to access your credit report weekly, though we’re not sure how long this will last. Regularly reviewing your reports can help you spot discrepancies early and track your recovery progress.

If you want more personalized support and access to your FICO credit score but don’t want financial coaching, then sign up for a credit report review with Prosperity Connection! Our free credit report reviews are short, one-time appointments that provide you with one-on-one support, personalized recommendations and tips, your credit report, and your FICO score. Our staff or trained volunteers are ready to help you feel comfortable with your credit security.

Prevention is Key

While no one can eliminate the risk of identity theft, you can take proactive measures to reduce your vulnerability.

• Guard Personal Information: Be cautious when sharing sensitive data, especially online or over the phone. Avoid sharing login information via email or text. To be extra safe, consider shredding any personal or financial documents before you recycle or discard them.
• Use Strong Passwords: Opt for unique, complex passwords and enable two-factor authentication wherever possible. Consider using resources like LastPass or Google Password Manager to safely save all of your passwords.
• Monitor Your Accounts: Regularly review bank and credit card statements for unusual activity. Make sure you recognize each charge.
• Be Aware of Scams: Stay vigilant against phishing emails, fake websites, and unsolicited requests for personal information. Make sure a source is legitimate before you click on any links. Be cautious of suspicious promises–often, if it sounds too good to be true, it is.

We’re Here to Help

At Prosperity Connection, we understand the financial challenges that identity theft can bring. Our team is here to provide support, guidance, and resources to help you regain control of your finances and safeguard your future. Get started with our services, and you won’t have to struggle through this process alone.

If you’ve been affected by identity theft or have questions about protecting your financial well-being, don’t hesitate to reach out to us! Together, we can work toward a secure and prosperous financial future.