Many people in this part of the world have unsuspectingly become victims of fraudsters and identity thieves, popularly known as "Yahoo boys". These nefarious elements steal personal information and identities for their own gain. 

As this trend continues, cybercriminals continue to evolve looking for new ways to defraud people and stay under the radar of the authorities. As a result, one must understand and implement proactive strategies to protect oneself against identity theft

This article discusses 11 ways or methods to protect yourself from identity theft and fraud. But before we dive in, let's know what is Identity theft and fraud.

What Is Identity Theft?

Identity theft is the stealing of one's personal information by another without the former's consent. This could include any information including your National Identity Card Number for Nigerians or Social Security Number for Americans; or whatever of its equivalent there is in other parts of the world. 

This stolen information can be exploited by these criminals to gain access to the individual's financials. These thieves could steal your credit card number, and your bank account details and can use this information to open phoney accounts in one's name to perpetrate crimes. 

For those who do not know, Identity theft is a type of fraud. 

What Is Fraud?

Fraud is any activity that makes use of deception to achieve a gain. Black's law dictionary states that fraud becomes a crime when it involves a "knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment". 

This means an entity lying to or deceiving another to get something of value. This thing of value can be money, property or even a service. Victims can also lose their integrity or good name, If caught in the act, perpetrators will face criminal charges and bag jail time.

What Are The Types Of Identity Theft?

There are various types of identity theft, they include: 

1. Child Identity Theft

This involves using the identity or information of someone considered by law to be a minor to open accounts or apply for credit. Children are not expected by law to check credit reports, so this crime may go unnoticed for years.

2. Medical Identity Theft

This type of identity theft happens when a person uses another person's personal information to gain access to medical services including prescriptions or insurance. This is bad for the victim as these activities can block access to future healthcare. 

3. Synthetic Identity Theft

This type of identity theft occurs when criminals make a new identity by combining real and fake information. This can be a legitimate social security number or Bank Verification Number (BVN) and a false name. This identity is then used to open accounts to be used to commit fraud. This type of identity theft is difficult to detect because it has attributes of a real person.

4. Taxpayer Identity Theft

This type of identity theft happens when a fraudster uses a person's social security number to file a tax refund. Unfortunately, many victims of this identity theft only notice that they have been stolen from when their legitimate tax return is rejected by the IRS.

5. Criminal Identity Theft

This type of identity theft involves criminals using another person's information when apprehended for a crime. This act causes the real owner of the information to suffer for crimes he didn't commit as they reflect in his/her criminal records.
 

6. Account Takeover

This happens when criminals break into an existing account of a person in a financial institution or organisation and then change the account information to prevent the real owner access to his account. More often than not, Account takeover fraud gives criminals unrestricted access to empty the account without the owner being able to do anything about it.

What Are The Types Of Fraud? 

There are various types of frauds criminals perpetrate. Some of the most common ones include: 

1. Identity theft 

As explained above identity theft involves criminals stealing someone's personal information to commit fraud in their name. 

2. Insurance Fraud 

Insurance fraud is the type of fraud involving criminals deceiving insurance companies in the view of getting more money than they are entitled to in case of disaster. This can involve the criminal intentionally damaging his possession in order to use the proceeds to acquire a better one.

3. Credit card fraud 

This is one type of fraud that is prevalent amongst criminals. It is for uses stolen or counterfeit credit cards with people's information in them to make unauthorized purchases online or in stores.
 

4. Wire fraud 

This type of fraud involves using electronic communications like emails to commit fraud. This is especially seen in phishing emails or online auction scams. 

5. Tax fraud 

Tax fraud is an illegal activity that involves intentionally misrepresenting your tax situation to avoid paying the taxes you owe.

6. Embezzlement 

This type of fraud is one of the most common type of fraud. It is prevalent among public officeholders and government officials. It involves stealing money or property from an employer or organization and claiming it as one's own.

Related: Credit Card Fraud and Identity Theft: Differences

What Are The Various Methods Of Protecting Yourself From Identity Theft And Fraud?

Many people have been victims of these heinous crimes and want options on how to protect themselves from identity theft and fraud. They ask themselves "which of the following will help you protect yourself from fraud and identity theft?

Below are recommended methods to protect yourself from identity theft and fraud:

1. Safeguard Your Identification Numbers

You must make sure that you keep your identification numbers like your National Identification Number (NIN), Social Security Number, Voter card Number and more. Ensure that you do not carry these cards in your wallet; if you do, only take them along when necessary.

2. Freeze Your Account

In case you detect suspicious activity on your account, you can call your bank or financial organisation's support desk, requesting they help you freeze the account pending the time the threat is addressed and the account is rendered safe to use.

3. Set Up Account Alerts

You can set up alerts for activities on your account from failed log-in attempts to failed transaction processes. This will help you notice if there is any unauthorised activity on your account.

4. Be Alert To Phishing And Spoofing

Do not believe that every text, email, call or communication is legitimate and should have you share your personal information with. Verify these communications from the right sources to find out if they are really what they say they are before you respond. You may just be saving your self from being defrauded.

5. Use Strong Passwords And Two Factor Authentication

Another method of protecting yourself from identity theft and fraud is to ensure that your password is strong. This means that you should create a password with a combination of letters, numbers and symbols to keep fraudsters from guessing your passwords while trying to access your account. You can also add an extra layer of security by asking for a second form of identification during account access or transactions; such as sms texts, One-time passwords, facial recognition and more.

6. Destroy Junk mail Immediately 

To be on the safer side, make sure you destroy or shred junk mails as soon as you are done with them, especially those containing your personal information. You do not want a dumpster diver gaining access to your personal information and sharing it with a fraudster.

7. Watch Your Mailbox

Ensure that you keep an eye on your mailbox. Secure it well enough that it will be difficult for mail thieves to access your mail. Also, collect your mail as soon as they are delivered or opt for online statements to reduce your chances of having your mail stolen.

8. Use A Digital Wallet

Digital wallets like Google Pay or Apple Pay are highly encrypted, keeping out any unauthorised access to your account or personal information; especially during a transaction. They are safer than having to carry physical cash or cards and offer another layer of protection from fraudsters.

9. Protect Your Mobile Devices

Keep your phone, tab, computer or other mobile devices to your self and within reach at all times. Your mobile device is a focal point criminals can use to get access to your personal and financial information. Set passwords, enable fingerprint or facial recognition, and install software updates promptly to keep your device safe. Avoid downloading unknown apps, and use caution when connecting to public Wi-Fi.

10. Regularly Check Your Credit Reports

Monitoring your report regularly helps you detect early signs of identity theft. Review your credit reports for unfamiliar accounts or activities.

11. Monitor Financial and Medical Statements

It is a great idea to always check and review your bank transactions medical records, credit card transactions and others for errors. Many people do not even understand that medical identity theft can be especially harmful, as it may lead to false information in your medical records. Contact your service provider immediately if you notice any suspicious activity on your account.

How Identity Theft Happens 

Unfortunately, identity theft happens in several of ways. Some of the most common ones include:

1. Losing your wallet 

Many people do not understand that losing their wallets gives thieves and other criminals that happen to come into contact with them, access to their identity cards, credit or ATM cards and other sensitive people information that could be used to defraud them.

2. Using Public Wi-Fi

Many a time using public Wi-Fi, especially one that is unsecured is a recipe for being defrauded. These Wi-Fi can allow hackers to intercept data and important information from one's device. This data and information include passwords and financial details. 

3. Mail Theft 

Many people have the ill luck of having their mail stolen by criminals. When these mails are student comma criminals may get access to sensitive information including your bank statements and other documents there reveal your personal details useful to them. 

4. Data Breaches

Companies that store large amounts of personal data from their customers or clients unfortunately are targets for hackers. Once these hackers had successfully breached the organizations firewalls Kumasi proceeded to steal personal information like social security numbers come our bank verification numbers, email addresses, passwords and so much more. This information could be exploited by fraudsters for financial gain.

5. Phishing Or Spoofing

You can get your identity stolen if you accomodate phishing emails texts or visit spoofed websites which mimic legitimate companies. These sites and emails are made for one thing, hooking and tricking you into inputting or sharing your personal details which will be used to defraud you. To keep yourself from falling victim to this type of identity fraud, ensure do not visit phoney websites, check the spelling of the website URLs you wish to visit and do not open or respond to suspicious emails.

6. Skimming

Skimming, a way of stealing one's identity is one that often goes unnoticed. People using ATMs and gas pumps are the prime targets of skimming fraud as the slots of the machine could have been bugged with devices which capture your card information once used. To keep yourself from falling victim to this means of identity theft, ensure you inspect the card readers for tampering before entering your PIN. 

7. Spying Over Shoulders

This is one of the most common, but overlooked means of stealing people's identities. Criminals could be looking over your shoulders watching your movements while you conduct your transaction. Always be mindful of your people watching when you use the ATMs or debit card or make a transfer to prevent falling victim.

8. Malware

Sometimes, it is best to just buy and use software gotten from the right sources. Malware is software used by hackers to gain access to your computer and many of them come embedded into bootleg software people buy. Ensure that you do not install software from unknown or unverifiable sources.

9. Phone Scams

This may include getting a shady phone call or message from a bank official, government agent, or even an estranged relative in another country. Fraudsters use phone scams to trick innocent people into giving up their personal information to help them solve a problem. 

Ensure not to indulge them. installing spam or caller detection software on your phone to help sift your trusted callers from fraudsters can also prevent identity fraud.

How Do You Report Identity Theft Or Fraud

In case you find out that you have become a victim of these crimes, do not panic. To report identity theft or fraud, do the following:

1. Contact your financial institution like your bank to notify them of your suspicion. Request that they freeze your account immediately and help you investigate.

2. Report your suspicion to any law enforcement agency that can help you like the Police, EFCC, FBI or any other agency peculiar to your country. They are the responders to cases of identity theft or fraud on your finances.

3. Notify the relevant organisation that is involved in the fraud to let them know that you have been a victim.

4. Keep monitoring your credit and financial accounts to see if the criminals may attempt attacking your account again.

Related: How to Report Identity Theft in Nigeria.

Protect Yourself with the Best Fraud Prevention Solutions

Identity theft and fraud are common problems in the world and many people have suffered untold hardships because of them. Knowing the methods of protecting yourself from identity theft and fraud is the best way to avoid “stories that touch the heart”

By understanding how identity theft happens, recognizing the types of fraud that may target you, and following proactive protection measures, you  won't be caught unawares asking yourself “which of the following will help you protect yourself from Fraud and identity theft?”

You already know how you can significantly reduce your risk. If you do fall victim, knowing how to report the theft and act quickly will help you limit the damage and begin the recovery process.

Youverify is a fraud prevention solution that helps banks and businesses prevent different types of fraud like identity fraud using AI-powered fraud protection solutions. Stop fraud before it happens and protect your customers and businesses with AI and machine learning.  

60% of commercial banks use Youverify fraud prevention solution. Talk to a Fraud Expert to schedule a FREE demo session to see how it works.