Strategies to fortify your identity against identity theft and connected tax fraud:
Identity Theft Warnings intensify as Summer Approaches and Fraud Rates soar
With the summer season nearly upon us, concerns about identity theft continue to mount. According to recent findings by Javelin Strategy & Research, identity fraud incidents in 2024 are estimated to rise significantly, with consumers losing a staggering $27.2 billion due to the fraudulent activities. These figures represent a 19% increase from the previous year [1].
The escalating fraud types include new-account fraud, account takeover fraud, and existing card fraud, which have surged in response to increasing cyber attacks and data breaches. Many of these breaches involve cloud service providers and data brokers [1].
To help protect yourself, keep these 15 tips in mind:
- Be cautious when utilizing public Wi-Fi networks. Public connections may leave your data susceptible to unauthorized access. Use a VPN or opt for cellular data when possible.ianeSSH
- Safeguard your paper documents. Securely file crucial documents like credit card statements, bank receipts, and copies of tax returns, and dispose of unnecessary papers through shredding.
- Update your mailing address promptly. Inform financial institutions, credit bureaus, and tax authorities when relocating. You can file Form 8822, Change of Address, with the IRS, or update your new address on your tax return [1].
- Regularly review your bank and credit card statements for any irregularities. Immediately report suspicions or any unrecognized transactions.
- Limit the personal information you share online. Provide only required details when purchasing items or subscribing to newsletters. Be mindful of sites' privacy policies to understand how your data may be shared with other companies.
- Adopt secure, unique passwords for all online accounts and update them regularly. Avoid using easily guessable passwords such as those listed here. Consider employing a password manager for convenience.
- Opt for multi-factor authentication when offered. This additional layer of security requires extra verification steps, enhancing the security of your online accounts [1].
- Show caution when engaging with games, quizzes, or memes that request sensitive information. These requests could be a trick intended to gain your personal information. Thoroughly consider the risks of sharing any details before clicking.
- Avoid falling victim to phishing scams. Do not click on suspicious links sent via email, social media messages, or text messages, and never share sensitive information in response to these attempts.
- Limit the sharing of your Social Security Number. Social Security numbers are valuable targets for identity thieves, as they serve as a primary identifier in various aspects of life [1].
- Regularly monitor your credit report. Check for any inaccuracies or unauthorized activities. You are entitled to one free report annually from each of the major credit bureaus [1].
- Stay vigilant and be alert to any fraud alerts offered by your bank or lender. Take advantage of these offerings to protect your accounts.
- Freeze your credit to prevent others from opening accounts in your name. This can be done by contacting the three major consumer credit reporting agencies: Equifax, Experian, and TransUnion [1].
- Set up credit alerts to quickly detect any fraudulent activity. These alerts can be triggered based on criteria such as new credit inquiries or unusual account activities.
- Consider establishing a "trusted contact" with financial institutions. In the event of suspicious activity, they could contact the designee to verify your identity. This service may not be universally available but is worth inquiring about [1].
Remember that no matter how careful you are, you are still vulnerable to identity theft with third parties frequently gaining access to your personal information. If you fall victim to identity theft, take swift action to mitigate potential damage to your accounts and credit. Contact your financial institution to report the fraud and consider freezing your credit. If needed, file a complaint with the FTC at identitytheft.gov and submit Form 14039, Identity Theft Affidavit, if the identity theft involves taxes [1].
[1] Javelin Strategy & Research 2025 Identity Fraud Study suggests a surging identity theft threat for 2024, citing synthetic identity fraud, phishing scams, account takeovers, and technological vulnerabilities as primary causes. Investment in advanced technologies such as AI and ML, combined with proactive risk management strategies, appears vital for effective fraud prevention and detection efforts [2][3][4].
[2] The study warns that if fraud rates increase by 50%, approximately 37.7 million people could be affected annually in 2024, with potential losses reaching $29.6 billion [1].
[3] The sharp escalation in sophisticated fraud attempts highlights the necessity of evolving security measures to counter these complex schemes [1].
[4] The study highlights the urgent need for innovation in technology and security to address the exacerbating identity fraud threats [1].
With the escalating issues of tax fraud, identity scams, and identity theft as summer approaches, it is essential to ramp up personal cybersecurity in the realm of finance. The 15 tips provided can help safeguard your identity against potential threats, such as those involving new-account fraud, account takeover fraud, and existing card fraud. In addition to these, staying vigilant regarding phishing scams, social security number safety, and regular credit report monitoring are all vital ways to protect yourself from fraud [1]. Integrating technological advancements like AI and ML in security measures will further support protective efforts against the surging identity fraud threats [2][3][4].
