Identity Theft has been on the rise over the past two years. People are stressed out with world events, making them more susceptible to frauds and scams. Scammers are becoming more prevalent, preying on this desperation. According to the FTC, there has been more than $5.8 billion in loss to consumers due to identity theft and fraud in 2021 alone. This accounts for about 3 million consumers who fall for shopping scams, text messaging scams, and imposter scams.

With these scams running rampant, consumers must become more aware and arm themselves with adequate knowledge and proper protection. Frauds can come in many different forms, even if the consumer is not aware of the scam directly. For example, the more websites a consumer signs up for, the more likely that there might be a data breach in which their information is leaked. In 2021, there has been a 68% rise in data breaches compared to 2020.

When a data breach occurs, personal data can leak to various parts of the internet, and scammers and fraudsters can use this information to open up lines of credit, personal loans, and other credit accounts in another person’s name, causing trouble for the person’s credit history and finances.

Luckily, there are ways to help prevent and monitor such credit related actions that have been done in someone else’s name. One of the most common is to place a fraud alert or put a freeze on your credit with the credit bureaus (Equifax, Experian, and Transunion). This is a free tool that anyone can use. Credit bureaus are obligated by law to help their customers and provide these services. A freeze will prevent any new accounts from opening in your name, and you’ll still be able to use your current credit cards, loans, and lines of credit. A fraud alert will make sure the bureaus contact you when an account is being opened in your name to verify it is really you that’s opening the account.

However, there are other tools that people can use to help fight fraud and prevent ID theft. Many services, free and paid, offer credit monitoring and ID theft monitoring. Luckily, most credit card companies offer a free, rudimentary monitoring system, such as a simple inquiry monitoring tool. Creditors will ping a credit history before opening an account; thus, this incurs a hard inquiry. Then, the credit card company will notify you when an inquiry has hit your credit report. This allows you to see if someone else is trying to open an account in your name. Not only do certain creditors offer this service, but Experian and Credit Karma also offer these services for free as well.

Premium services go a step further by not only monitoring new inquiries hitting your credit report, but also trying to detect any fraudulent activity that may be happening on your credit history and online. For example, Smart Credit, which charges for its services, offers fraud protection, ID theft monitoring, ID theft insurance, and alerts you on any suspicious activity happening in your name. There are many online services like these, so find one that best suits your needs and price point.

If you have been affected by ID theft and fraud, we at Fix Your Credit Consulting can help you get back on track with your credit score and history. Call us at (877) 212-2450 for a free consultation.

If you have any questions, feel free to give us a call at 877-212-2450!

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