Why Is It Important To Have Identity Theft Protection? Having identity theft protection is important because it helps safeguard your personal and financial information from being stolen and misused.
Identity theft is so rampant and damaging that in 2023, reports came in that identity theft was responsible for 2.6 million cases of related fraud. According to these reports, identity theft was responsible for losses of more than $10.3 billion worldwide. Most times, identity theft is perpetrated through people's electronic devices. Because of this information, we are answering the question most people ask when it comes to identity theft: why is it important to have identity theft protection?
What Is Identity Theft?
Identity theft is a situation whereby criminals steal the personal information of an unsuspecting victim, without their consent, to use it for fraudulent activities. Identity theft often results in financial losses and damage to the victim's reputation.
Why Is It Important To Have Identity Theft Protection?
To answer “why is it important to have identity theft protection on your devices or online activity”, we need to recognise the ever increasing menace and sophistication of cybercrime. To buttress this point, the following is considered:
1. The prevention of financial loss
No one wants to have their money or assets stolen from them. Thieves can steal your identity or personal information to gain access to your financial assets, making unauthorized purchases and draining your account. Using an optimal identity theft protection can help you detect the activities of these thieves early and reduce the risk they pose to your assets.
2. Protecting your credit score
Your credit score is what helps you qualify for loans, mortgages and rent. If criminals steal your identity, using it for fraudulent activities, they may damage your credit score, making it difficult for you to access these services. The credit monitoring arm of identity theft protection alerts you of any changes in your credit report ; giving you the opportunity to address this issue before it becomes a major problem.
3. Safeguarding Your Personal Information
Identity theft protection helps keep your personal information safe from criminals wherever you go online including the dark web; putting a ring of security around it. It alerts you if it has been accessed, stolen or compromised.
4. Time and stress reduction
Recovering from the onslaught of identity thieves can take a lot of time, energy and can be a stressful process. Using an identity theft prevention package that gives identity restoration can help you navigate the recovery process seamlessly, quickly and easily.
5. Early detection of Fraud
Having optimal identity protection software can help you detect fraud early. This helps to minimize or prevent fraud before it affects you. This service also gives you real-time alerts to efforts to tamper with your identity, allowing you to take action immediately against criminals seeking to steal your identity.
6. Protection against the various forms of identity theft
Optimal identity theft protection software helps you guard against all types of identity theft including financial identity theft, tax identity theft, child identity theft, and medical identity theft.
Protecting your identity helps you and your assets stay safe in an ever-evolving digital world. It safeguards your financial-well being and your personal information
Common Ways Identity Theft Happens
Identity theft happens to the unsuspecting in a number of ways. These ways include:
1. Digitally
Identity theft happens digitally through phishing which basically is any deceptive communication. Email, text, etc trick individuals into revealing personal information like passwords, user names, account information, and more to criminals.
It can also come in the form of malware which are malicious software installed unsuspectingly on the victim’s computer or mobile device to steal his personal information and login credentials without his knowledge.
Data breaches can also happen to steal a person’s personal information. This is when hackers target and get into the systems of large businesses and organizations, stealing large amounts of personal data -especially of their customers - used for identity theft.
In other ways, data can be stolen digitally by skimming. This happens when criminals use a device to capture users' personal data at ATM machines.
Online scams also come through on this in the form of online marketplaces, social media scams, Ponzi schemes, and more.
2. Traditionally
Traditionally, identity theft is perpetrated through ways including:
Dumpster diving which has criminals go through trash looking for discarded documents that contain people’s personal information which they can target and steal.
It can also happen when the criminals directly steal your mail, looking through its contents for information they could use for their nefarious purposes.
Shoulder surfing also comes in where criminals observe you entering your information, pins and passwords in public places like ATMs and more.
Insider threats are also a type of traditional identity thieving. It happens when criminals with access to sensitive inside information in organizations steal or misuse it for their own nefarious gains.
How Identity Theft Protection Works
Cybersecurity firms offer identity theft protection services or software to help you keep an eye on your personal information on the internet on your PC or mobile device. In an effort to prevent and safeguard you against identity theft, these services monitor any changes made to your data and alert you if something appears strange.
One crucial way these programs operate is by keeping an eye on your credit reports for signs of fraud, such as someone opening a bank account in your name. Every time anything unusual happens, you are notified. Dark web surveillance searches questionable websites for breaches of your personal data, including passwords and ID numbers providing online scam protection. If they find anything, they immediately notify you.
Additionally, they track your identification online, monitoring public information for red flags, such as someone relocating your residence or using your ID number illegally. Fraud alerts warn you about suspicious activities, such as strange transactions or failed login attempts.
They also help you with identity restoration in the event that there is a breach and your identity is taken. They help you report fraudulent activity, fight false accusations, and get your identity back if it has been stolen. Many providers also include password managers to help you create and keep safe passwords. To search for phony accounts or dubious behavior linked to your accounts, certain companies provide social media monitoring services.
In the event that you fall victim to fraud, they also provide identity theft insurance. Some platforms even offer identity theft insurance to cover costs like legal bills and lost wages.
How To Prevent Identity Theft.
Protecting yourself from identity theft is a venture that cannot be overemphasized, especially in a world where criminals are looking for loopholes to exploit to gain access to your assets. Combining vigilance in both your online and offline activities is one sure way of ensuring identity fraud prevention. Here’s more:
1. Ensure you are protected while online.
You can make this happen by using strong, alphanumeric passwords with symbols embedded in them for all your online accounts. Also put in multi-factor authentication to create an extra shield against criminals like a code sent to your phone.
Be careful of phishing scams. Don't be greedy, disregard any communication that brings too-good-to-be-true offers. Do not share your personal information on untrusted websites or apps.
Install and regularly update the security software like antivirus and more on your devices. Use a firewall to protect your network and secure your wi-fi with a strong password.
Limit the amount of information you share online, especially on social media platforms. Keep birthdays, phone numbers, and residential addresses out of your communications unless necessary.
While shopping online and looking to be under the radar of online identity protection, ensure you only shop on reputable websites. Do not use payment options that are not secure. Also, avoid using public wi-fis for online shopping or banking, they can be bugged. Ensure you regularly check your accounts to see if your money hasn’t been tampered with.
2. Ensure you are protected offline
While offline, you can secure yourself from being a victim of identity theft by protecting your physical documents . Ensure sensitive documents like social security number, birth certificates and financial statements are kept in secure locations. Destroy documents containing your personal information completely if you want to get rid of them. Also, do not be careless with your mail. Retrieve them promptly, destroy them when done with them, you can also opt out of pre-approved credit offers to stop receiving incessant mails from them.
You should also be aware of your surroundings while using the ATM. Protect your wallet or purse. Only monitor and receive your credit reports from well known outlets; you can also review them for suspicious activities on it.
Don't give out or share sensitive information like your social security number, bank verification number or more to anyone.
What Do You Do If You Become A Victim Of Identity Theft?
In case you become a victim of identity theft, you need to act fast. Report the theft to your bank, financial organizations, the police, and the agency in charge of prosecuting such crimes in your country or region. Freeze all accounts and stop all online transactions while the investigation goes on.
Final Words
Now that we have understood why it is important to have identity theft protection, we must not forget that safeguarding your assets begins with you. Do not engage in too-good-to-be-true offers online. Use strong passwords; regularly update your antivirus and device security.
In case you are an organization needing solutions to help keep your systems and customer information safe; contact Youverify to book a demo today. We can guarantee you the peace of mind enjoyed by over 2,000 businesses and individuals including MTN and Standard Chartered.