The information contained herein is for informational or educational purposes only.

What is identity theft?

You’ve seen the phrase everywhere, from television advertisements to cautionary news stories. Identity theft is a crime that remains top of mind. Defined as someone stealing your personal information — such as your name, social security number or bank account login credentials — and exploiting it for financial gain, identity theft is not a new phenomenon. However, it has taken new forms.

The term “identity theft” has existed for more than half a century, but massive growth in online banking and commerce over the past few decades has caused a similar explosion in identity theft cases.

In the age of digital banking, how do you best stay aware of and protect yourself from identity theft? We’ll talk through some key considerations and recommendations, as well as how Bask Bank’s new features can help keep your identity safe.

What do identity thieves do with stolen personal or financial information?

Most often, identity theft is done to exploit personal information for financial gain. That can take on more forms than you might expect.  

Funds can be drained from your bank account, either through withdrawals and transfers or illegal spending via card information. In other cases, entirely new credit card accounts are opened in your name, or loan applications are submitted with your stolen information. 

Know the signs of identity theft.

Identity theft, like many crimes, is best prevented by education, awareness and proactivity. By understanding the signs of identity theft, you can lower your relative risk and avoid becoming a victim.

Here are some tips for spotting potential identity theft and improving your digital banking security: 

Regularly monitor your accounts for suspicious activity.

• To increase digital banking security, be sure to regularly monitor your bank accounts and debit and credit card statements for fraudulent purchases or unauthorized charges.
• If you see a strange charge on your credit card or notice an unexplained withdrawal from your bank account, contact your financial institution immediately.

Manage your credit report.

• If your credit card has been denied or you’ve had issues with a new credit application for no obvious reason, there is a chance someone has opened an account in your name.
• If this happens, contact your credit card company immediately and check your credit report for fraudulent account activity.
• Consider activating a credit monitoring application that tracks your credit and alerts you of any suspicious activity.

Keep track of your mail.

• If you’re expecting an important document like a bank statement or new credit card to arrive in the mail and it doesn’t show up, contact your financial institution right away.
• For other advice on how to keep your mail safe, check out these tips from Bask. 

Respond to communications about fraudulent activity.

• If you receive a letter in the mail or a call from a debt collector about an unknown bill, scammers may have used your personal information to open an account in your name.
• Contact the sender to alert them about the identity theft and then report it to the authorities. Here’s a resource from the Federal Trade Commission (FTC) that shows you how to do that.

Use secure banking features like Bask Bank’s Bill Center and Manage Debit Card.

• Bask Bank has added new Online Banking capabilities with the goal of providing security and peace of mind when it comes to avoiding fraud.
• With Bill Center, you can pay all of your bills securely online and skip the paper checks.
• With Manage Debit Card, you can be notified of purchases, set card controls and freeze your card instantly in case of fraud.

Beware of phishing, a popular tactic used by identity thieves.

Phishing is a type of cybercrime in which a thief attempts to trick you through an official-looking email, text or voicemail into revealing your personal information. The criminal then uses that personal information to commit identity fraud or theft.

Because phishing attacks rely on impersonating official communications, there is a dangerous assumption that the attacks are more effective on less traditionally tech-literate groups. However, as reported by CNBC, the FBI’s statistics on cybercrime actually show that younger generations are falling victim to phishing more often. This goes to show that cybercrime doesn’t discriminate based on age, and everyone should be vigilant.

The ultimate goal of a phishing attack is to coerce you into clicking on a link or opening an attachment so your information can be accessed and stolen. It can be very difficult to spot the differences between legitimate and scam communications. So, how do you guard against phishing? It’s not as simple as it might seem.

Many phishing emails and texts look like they are from a company you know and trust; they can even include logos and personalized greetings. Thankfully, organizations like the FTC continually track phishing scams and provide recommendations for what consumers should avoid. They advise that you not click on any messages that:

• Say they’ve noticed some suspicious activity or log-in attempts.
• Claim there’s a problem with your account or payment information.
• Say you need to confirm some personal financial information.
• Include an invoice you don’t recognize.
• Want you to click on a link to make a payment.
• Say you’re eligible to register for a government refund.
• Offer a coupon for free items.
• Have grammatical errors.

Ultimately, the best defense against identity theft through a phishing scam is to avoid clicking on any link that looks suspicious. Instead, if your warning bells are set off, visit the legitimate website of the organization the email may be impersonating and address any outstanding items there.  

What to do if you’re a victim of identity theft.

Even the most well-informed, prepared consumer can still fall victim to identity theft. As sophisticated as attacks have become, mistakes are bound to happen. In certain cases, identities can be stolen due to a data breach at a business you support through no fault of your own. Knowing the next steps is critical to mitigating damage and protecting yourself. If someone steals your identity, these are some steps to take as soon as possible: 

Contact the companies where the fraud occurred.

• Reach out and request that your accounts be closed or frozen, then change all of your login information and passwords with the organization. 

Place a fraud alert and a credit freeze on your credit reports.

• Fraud alerts are a free way to alert the credit bureaus to fraudulent activity you are experiencing. Those credit bureaus are Equifax, Experian and TransUnion. At Bask Bank, you can also freeze your debit card immediately in case of fraud. 
• In addition to fraud alerts, you should also place credit freezes with each of the bureaus individually to further prevent fraudsters from opening new accounts. 

Report identity theft to the FTC.

• Reporting the incident to the FTC is a necessary step and will result in the creation of an Identity Theft Report and personal recovery plan. You can submit a claim online. 

Close any new accounts opened in your name.

• If your identity has been stolen, it’s important that you stay hypervigilant with monitoring subsequent financial activity in your name. Once you receive your FTC Identity Theft Report, contact the fraud departments of each business where accounts were opened in your name and have them close your accounts. 
• For your own records, request a letter or email confirming that the fraudulent account is not yours, you’re not liable for charges and that the account was removed from your credit report. 

Remove fraudulent charges from your accounts.

• Reach out to any businesses where your accounts were improperly used and connect with their fraud department. Explain the situation and request that those charges be removed. For your own records, request that the business send you a letter or email confirming that the charges have been removed. 

Correct your credit report.

• Contact each of the three credit bureaus and ask that they remove any fraudulent information from your credit report. Include any documentation that can provide additional details. 
• To give you an example, take a look at this sample credit report letter.

Stay informed about identity theft trends. 

Awareness and education are vital tools when protecting yourself from or responding to identity theft attacks. At Bask Bank, we take safety seriously. That’s why we’ve added new Online Banking features, like Bill Center and Manage Debit Card, to keep your accounts and savings secure.  

Find tips to protect yourself from identity theft and learn how Bask Bank is prioritizing your information’s security at our Bask Security Center.