6 Victims of Identity Theft Share Their Mistakes
You probably don’t include your identity when you list your assets, but it may be more valuable than you realize. Your name, credit history and bank account information is worth big bucks to criminals who want to benefit from your hard work. Identity theft cost people and businesses more than $10 billion in 2022. And in the last ten years, the number of identity theft situations reported to the FTC has increased by 300%, according to data from the National Council on Identity Theft Protection.
See: 10 Healthy Habits of Happy People To Adopt That Will Ultimately Lead to Wealth
Also: 6 Ways To Build Wealth Slowly but Efficiently
Even though you think it may not happen to you, identity theft is actually a fairly common crime. Surprisingly, more than one-third of Americans find themselves dealing with some form of identity theft at least once in their lifetimes. GOBankingRates spoke with seven victims of identity theft who shared what they did — and didn’t do — that put their personal information in the hands of thieves.
Here are the lessons learned by Meredith, 38, of Brooklyn, New York; Henry, 46, of Sahuarita, Arizona; Lorena, 54, of Houston, Texas; Cheryl, 66, of Naples, Florida; David, 29, of Jacksonville, Florida; and Yasmeen, 33, of Fresno, California.
Mistake No. 1: I Used the Same Password for All of my Accounts
“I thought a strong password was all I needed,” admitted Meredith. “It never occurred to me that as soon as someone figured out my strong password, they had access to all of my accounts.” For this reason, the Cybersecurity & Infrastructure Security Agency points out that using the same password for all your accounts is no different than using easy-to-guess passwords.
“My email address and password ended up on the dark web, and that’s all it took,” Meredith added. “From there, they got into my bank accounts and even stole my Groupon account.” A password manager is a great tool for creating and storing strong passwords — and they’re surprisingly safe as long as you choose one with military-grade encryption and avoid accessing it when you’re using public internet.
Mistake No. 2: I Used a Debit Card at the Gas Pump
“I have a credit card for emergencies, and I pay cash for everything else,” shared Henry. “So, I used to swipe my debit card at the pump to buy gas.” Like many other victims of skimmer scams, Henry didn’t know anything was wrong until he noticed some unusual charges on his bank statement. “They had a great time at some upscale restaurants and an electronics store and charged over $2,000 in a weekend,” he said.
According to the FBI, the cost of skimming scams totals more than $1 billion annually. The agency recommends inspecting point-of-sale terminals for signs of a skimmer and using a credit card when possible, especially if you link your checking account to other bank accounts. Both credit and debit cards are safe to use, but credit card companies tend to offer additional protections you may not get with a debit card.
Mistake No. 3: I Ignored Security Warnings
Lorena, was careful to avoid email phishing scams, thanks to the thorough training she received at work. “Unfortunately, I was a little too careful,” she said. “I deleted what turned out to be very important emails because I never thought it would happen to me. I immediately thought the security warning email was a fake.”
It’s important to be careful about unsolicited emails because scammers sometimes pose as legitimate businesses. If you’re unsure about an email from a company you have a relationship with, don’t click anything in the email. The Federal Trade Commission recommends calling them or using the chat feature in the company’s website to verify the contents of the email.
Mistake No. 4: I Didn’t Check My Credit Report
Cheryl learned she was a victim of identity theft when she received an email from her bank telling her it was processing her platinum credit card application. “The thief applied for a card I never dreamed of having because I didn’t think my credit score was high enough to qualify,” she quipped. “This is one time a less-than-perfect credit score saved me. In fact, I was so sure my credit was bad that I never checked my credit reports. Now I have all of them frozen so this won’t happen again.”
To freeze your credit report, you’ll need to contact each of the credit bureaus individually and remember to unfreeze them if you plan to to apply for credit. It’s also a good idea to check your credit report at least once each year. You can get a free copy of your credit report from TransUnion, Experian and Equifax through annualcreditreport.com.
Mistake No. 5: I Didn’t Check My Bank Accounts
“My mom tried to teach me to balance my checkbook every month, and I ignored her because I don’t have a checkbook,” David revealed. “I’ve never written a check. I used to look at my balance at the ATM when I took out cash and just figured everything was fine as long as my account wasn’t overdrawn.”
This habit changed when he received an overdraft notice from the bank and investigated what happened. “Someone got my debit card information and spent about $500 from my account,”said David. “I got it back, but I had to get a new debit card.” David now sets aside time each week to review the transactions in his account to make sure they’re his.
Mistake No. 6: I Didn’t Lock My Phone
“I live alone and work from home, so I never locked my cell phone,” confessed Yasmeen. “It was never a big deal until I left it in a taxi last year while on vacation. I was able to lock it remotely, but it was too late.” She had set up two-factor authentication, but the thief immediately changed her email password, effectively locking her out of her accounts because she had neither her phone or her email to verify her identity.
Yasmeen’s bank reimbursed her the thousands of dollars fraudulently charged to her accounts, but it took weeks to sort everything out. “It felt like I lost everything,” she shared. “I was on vacation with no access to my accounts and no way to contact anyone. I never want to go through that again, so the first thing I did when I got a new phone was set up a smart lock.”
More From GOBankingRates
5 Ways to Earn at Least 5% APY on Your Money (Without Using the Stock Market)
Don't Make These Common Mistakes If You Want to Retire Wealthy
This article originally appeared on GOBankingRates.com: 6 Victims of Identity Theft Share Their Mistakes
