Protect yourself: Identity theft is growing more sophisticated

Anyone—not just the elderly—can be victimized by identity theft. This type of crime affected 42 million Americans in 2021, costing consumers $52 billion. Luckily, identity theft protection is possible, and there’s recourse if you do fall prey.

What is identity theft?

Identity theft is when a criminal uses your name and information—perhaps a credit card number, a Social Security number, or an insurance policy number—to siphon money from your accounts.

This sort of fraud can happen without your being aware of it. Here are some common ways you can become a victim:

• You shop at a major retailer whose computers were hacked by criminals collecting credit card numbers.
• You receive a letter from your state asking for evidence of unemployment in regard to a claim made in your name, when you never filed a claim or even lost your job.
• You get a fraudulent phone call, email, or text. The foreign prince scam has almost certainly run its course after being a common joke for decades, but scammers have gotten more devious as they target your money.

For instance, you might get an email ostensibly from the Internal Revenue Service (IRS) saying you’re owed a tax refund. When you share the information requested, the thief gets important data from you and possibly receives access to your tax and paycheck information. This is commonly known as “phishing,” a well-known method of senior-targeting.

Sadly, information thieves even use the tragic COVID-19 pandemic to target potential victims, according to the IRS. One common scheme is when someone poses as an IRS agent and sends an email saying you’re still owed pandemic-related stimulus money. They’ll request personal information and promise you’ll get the money once you respond. The email looks official, as if the IRS actually sent it.

But the IRS says it won’t initiate contact by phone, email, text, or social media asking for Social Security numbers or other personal or financial information related to pandemic Economic Impact Payments.

“Caution and awareness are our best lines of defense against these criminals,” the IRS said in a press release. “Everyone should verify information on a trusted government website, such as IRS.gov.”

Some of the thieves’ other favorite targets for money siphoning include:

• Social Security. Someone could use your stolen Social Security number to file a tax return with the IRS requesting a fraudulent tax refund.
• Credit cards. A thief who nabs your Social Security number can often apply for credit in your name. They’ll spend money and not pay it back. A few months later, you’re bombarded by calls from creditors and collection agencies. You’re generally not on the hook for repayment, but your credit score will suffer, and it will be quite a headache to repair the reputational damage.
• Driver’s license. State-issued driver’s licenses and ID cards are the most widely used forms of identification in the country. If a thief gets access to yours, they can open accounts in your name, avoid traffic tickets, or collect government benefits such as unemployment checks.
• Medicare fraud. Someone could use your name, Social Security number, or Medicare number to submit fraudulent claims to Medicare or other health providers.