6 Ways to Stop Identity Theft Online & What to Do If It Happens

Are you looking for effective ways to stop identity theft online?

Every minute, someone in the USA falls prey to this rapidly growing crime. Cybercriminals constantly find new ways to hack databases, while scammers deploy sophisticated phishing schemes to swipe personal information. These thieves’ evolving tactics make it crucial to protect your privacy.

This article will guide you through practical steps to safeguard your personal information, helping you significantly reduce the risk of becoming an identity theft victim. Let’s dive into proactive measures and learn how to fortify digital safety. If you are a parent we also recommend checking out our article on Cyber safety tips for parents of teenagers.

What is Identity Theft?

Identity theft refers to any deception, trickery, or criminal act that results in your details, such as usernames, passwords, banking information, credit card numbers, Social Security Numbers, and health IDs, being taken without your permission. This stolen information is then used to commit fraud and other crimes.

You need to take effective steps to stop identity theft online, especially considering the alarming statistics from the USA. For example, according to the Federal Trade Commission (FTC), over 5.4 million Americans were affected by fraud or identity theft last year, with financial losses reaching the billions.

Moreover, in 2024, over 300,000 Americans fell prey to phishing attacks aimed at stealing personal information. These numbers highlight your urgent need to safeguard your personal data actively.

How Online Identity Theft Occurs?

You can only stop online identity theft when you understand how it happens.

Online identity theft occurs when cybercriminals exploit security weaknesses to steal personal information. They use various tactics to trick individuals into giving up their data, leading to fraud and financial loss.

So, let’s explore how cybercriminals use different strategies to track your personal information:

Phishing and Confidence Scams

Identity theft online often begins when you encounter phishing scams. These scams trick you into providing sensitive information by mimicking legitimate requests. Confidence scams similarly deceive you through pretenses, where scammers gain your trust and then exploit it to obtain your details.

Malware Attacks

Another common method is through malware, which you might unknowingly download to your computer or smartphone. This malicious software is designed to access and steal your information directly from your devices.

Unsecured Wireless Networks

Using insecure wireless networks can also lead to identity theft. When you connect to an unsecured Wi-Fi network, cybercriminals can intercept the information you send and receive, including passwords and financial data.

ATM Skimming

ATMs rigged with skimming devices are another hazard. These devices capture the data from your bank card’s magnetic strip and PIN, allowing thieves to access your bank account.

Password Sharing

Sharing your passwords with untrustworthy people can also result in identity theft. Once someone else has your password, they can access your accounts and personal data.

Data Breaches

Finally, your personal information can be compromised during data breaches of companies, government entities, or educational institutions where your details are stored.

To prevent identity theft online, you must be cautious about how and where you share your information, use strong, unique passwords, and ensure your network and devices are secure.

6 Ways to Stop Identity Theft Online

While no service, app, or tool can offer complete protection against identity theft, you can take specific steps to strengthen your defenses and safeguard your identity from fraud, scams, and cyberattacks.

Understanding the risks and adopting effective protective measures can greatly reduce your vulnerability. Here, have outlined actionable strategies that can enhance your digital security and help keep your personal information safe.

1. Install and Maintain Security Software

To effectively safeguard your devices, you must install robust antivirus and anti-malware software on your computer and smartphone. This software acts as the first line of defense against cyber threats.

Ensure your security programs are always up-to-date to protect against new malware strains. Configure automatic scans to maintain continuous security and perform manual scans if you detect any unusual activity.

If your security software identifies malware, immediately clean or quarantine the affected files to neutralize the threat.

Moreover, keep your operating systems updated. Regular security patches are important as they fix vulnerabilities that could be exploited by attackers.

2. Establish Strong Passwords

Strong passwords protect personal data, such as credit card details and Social Security numbers, especially for sensitive accounts like banking or social media. Avoid simple, guessable passwords such as birthdays or pet names, which hackers can easily exploit if shared on social media.

To create effective passwords:

• Use unique passwords for each account to prevent cross-site breaches.
• Opt for long, complex combinations of letters, numbers, and symbols.
• Avoid common passwords and personal information.
• Consider using a password manager like NordPass to help you securely manage and store your passwords. It offers both free and paid versions to suit various needs and budgets.

3. Recognize and Avoid Phishing Scams

Learn to identify spam and scams. While some phishing attempts are obvious, others can appear quite convincing in emails, instant messages, social networking sites, or other websites.

The best defense against phishing scams is to avoid clicking on links sent to you unexpectedly. Even if an email looks authentic, complete with your bank’s logo and addressing you by name, it could still be fraudulent. Instead of clicking on any provided links, use a search engine to navigate to the website on your own. This ensures you’re accessing a legitimate site, not a counterfeit one designed to steal your information.

4. Shop Safely Online to Stop Identity Theft

Always choose reputable websites for online purchases to stop identity theft online. If you’re considering buying from an unfamiliar company, take the time to research its credibility first. Check user reviews, verify its rating with the Better Business Bureau, and ensure the website uses a secure, encrypted connection for transmitting personal and financial information.

Look for “https” in the website’s URL before entering sensitive data. The “s” in “https” stands for secure, indicating that the site uses an enhanced protocol to ensure the privacy and security of your information.

5. Monitor Your Credit Regularly

Regularly reviewing your credit report is important for spotting potential identity theft. You can obtain a free credit report annually from the three major credit bureaus—Experian, Equifax, and TransUnion—via AnnualCreditReport.com. Due to special circumstances like the pandemic, you might be able to access your report more frequently.

Examine your credit report for anomalies such as unrecognized accounts, changes in address, unfamiliar names, or unexpected drops in your credit score. These discrepancies could indicate that your personal information has been compromised. If you find anything suspicious, immediately contact the credit bureaus to place a credit freeze or fraud alert on your records.

Additionally, monitor your bank statements for unauthorized transactions. If you spot any charges or withdrawals that you did not make, contact your bank immediately to address the issue and secure your account.

6. Regular Personal Audits Using Public Background Check Services

Regular personal audits through public background check services is a proactive measure to safeguard your identity. These services allow you to monitor your personal information for unauthorized or suspicious activities. With a regular check, you can quickly identify discrepancies or misuse of your identity, which is crucial for early detection and prevention of identity theft.

Some of the benefits of using Public Background Check Services include:

• Detecting any unauthorized changes or fraudulent activities associated with your personal information.
• Ensuring that all recorded details are correct and up-to-date.
• Providing peace of mind by continuously monitoring your information for signs of identity theft.

Performing these background checks at least annually or more frequently, depending on your exposure risk is advisable.

Omniwatch – Your Ultimate Tool to Stop Identity Theft Online

To effectively integrate regular personal audits into your routine, you can opt for Omniwatch Plus. It is a comprehensive identity protection service that monitors your data across various public records and databases and includes advanced features. These mainly include dark web monitoring and real-time alerts.

With Omniwatch Plus, you get identity restoration support and up to $2 million in ID theft insurance, providing additional peace of mind.

By integrating regular use of public background check services like Omniwatch Plus into your routine, you can stop identity theft online and ensure that your data remains protected against potential threats.

What Can You Do if Online Identity Theft Happens?

If you become a victim of identity theft, you must take immediate action to mitigate the damage and protect your identity. What you should do is:

1. Place Fraud Alerts and Security Freezes

If you suspect identity theft, immediately contact one of the three major credit bureaus (Equifax, Experian, TransUnion) to place a fraud alert on your credit report, requiring creditors to verify your identity before opening new accounts. An initial fraud alert lasts for one year and can be renewed, while an extended fraud alert, available if you’ve filed an identity theft report, lasts for seven years.

Additionally, place a security freeze with each credit bureau to prevent new creditors from accessing your credit report. This stops identity thieves from opening new accounts in your name while maintaining access to your existing accounts.

2. Report Identity Theft

File a report with the FTC at IdentityTheft.gov, which provides a personalized recovery plan and sample letters to send to credit bureaus and businesses. Additionally, file a report with your local police department to document the theft and assist with any fraudulent activities.

3. Close Fraudulent Accounts

Contact the fraud departments of each business where an account was opened or used fraudulently. Inform them about the identity theft, request the closure of these accounts, and ask for written confirmation. This documentation proves that you reported the fraudulent activity and took steps to mitigate the damage.

4. Notify Financial Institutions

Review your bank and credit card statements for unauthorized transactions. Contact your bank or credit card company to dispute these charges and secure your accounts.

5. Protect Your Information

Change passwords for all your online accounts, especially those linked to your financial information. Use strong, unique passwords and consider using a password manager.

6. Consider Additional Protection:

• Identity Theft Protection Services: Services like Omniwatch Plus can offer additional monitoring and support, including dark web scanning, real-time alerts, and identity restoration services.
• ID Theft Insurance: Some services like Omniwatch cover identity theft-related expenses, offering financial protection and peace of mind.

By following these steps promptly, you can effectively respond to identity theft, minimize its impact, and protect your identity in the future.

The Bottom Line!

Identity theft is a serious and growing problem in our digital world, but you can prevent it online by being proactive and staying informed. Keeping a close eye on your personal information and acting quickly if you notice something unusual can make a big difference.

Using advanced protection tools and regularly updating security measures will help keep your information safe. The peace of mind from knowing you have protected your identity is priceless.

Remember, fighting identity theft isn’t just about responding to incidents—it’s about building strong defenses to secure your personal information. Following these steps can create a safer online environment for yourself and your loved ones.