It takes focus, discipline, and hard work to accumulate assets and build a secure financial future. Protecting those assets and securing that future also requires attention.
Here are some statistics to drive home that point:
According to a report cosponsored by the AARP, Americans lost $43 billion to identity fraud in 2023. This represents a 13% increased per capita loss over 2022 which means the criminals are shooting for bigger payouts by targeting wealthier individuals.
And that number is likely much higher because these cases are historically underreported. Victims often feel uncomfortable and unsafe coming forward.
When a criminal obtains your personal information such as a Social Security number, home address, date of birth, or bank account number, they can use it for illicit purposes such as draining your bank account, opening new credit cards, or even transferring a property deed.
Identity fraud isn’t anything new, but the ease with which it can be carried out has become much easier. The advent of the internet and social media has allowed criminals to go “phishing” for personal information by representing themselves as trustworthy or from a trustworthy institution such as a government agency or your bank. And there is the personal approach that prays upon the lonely and the elderly. They can also embed malicious links into an email that can infect your device and steal your information.
And then there are the large-scale thefts carried out through data breaches of online platforms, where cybercriminals hack into the company’s system and steal sensitive consumer data. Sometimes they will encrypt the captured data and request a ransom for its decryption and release. And sometimes it is sold on the dark web.
Being a victim of fraud or identity theft can be devasting, both personally and financially, requiring hours to correct the situation, fill out paperwork, and in some cases pay for professional legal and/or accounting assistance.
Some things you can do:
Be judicious with your personal information when filling out forms. Don’t hesitate to question whether certain information is needed.
Don’t provide personal information on social media. Most games and questionnaires are designed to capture your information. “What’s your sign?” is a way to get your birthdate.
Use a password manager. There are many reliable ones on the market. Don’t under any circumstance use the same password for all your accounts or use your birthdate.
Freeze your credit. All three of the major credit reporting bureaus will do this free of charge. This prevents anyone from opening new credit or bank accounts in your name.
Don’t open an email or click on a link from a person or organization who you do not know, and do not offer personal information to anyone without confirming their identity.
Your One Financial Services team is always here to review your security protocols and to assist you in protecting your financial future.