Take, for example, the recent information security breach experienced by Anthem. While no credit card information was stolen, cyber attackers accessed the personal details of as many as 80 million Anthem members, including children.
While credit monitoring is frequently suggested, using a monitoring service alone will only help you recognize that you've been impacted after it's too late. Authors and financial advisors who suggest credit monitoring mean well, but many have never experienced identity theft themselves.
Below is a story of just how impactful identity theft can be.
Rhett's Story
Rhett Saunders, a Compassion International employee, has experienced identity theft personally and even lost his father due to the emotional toll that came with it.
"The thief comes only to steal and kill and destroy; I have come that they may have life, and have it to the full." — John 10:10 (NIV)
Credit reports are exposed and accessible for any identity thief to steal. Currently, our society places greater value on convenience than privacy. Because of this, many U.S. companies have less strict controls than other countries.
One thing I know for certain is that protecting yourself against identity theft cannot be done alone — and there are many precautions you can take. When trying to recover from identity theft in the U.S., we are all guilty until proven innocent.
Over the years, after trying to help my father in 2010, I learned four essential steps that will lessen or stop identity theft before it starts.
Four Essential Steps
STEP 1: Get identity theft insurance today.
Zander Insurance: $12.90 per month for the whole family to be covered.
STEP 2: Get a permanent security freeze on your credit reports.
Place a permanent security freeze on all credit bureaus, if you are in a season of not getting out new loans and new credit cards. This has to be done separately for each of the three credit bureaus. This will cost approximately $10 each to lock and $10 every time you need to perform a temporary lift to allow a creditor to request your credit. This will not impact your current credit cards, mortgage or credit rating. It only impacts the ability to get new credit and prevents anyone from looking at or altering your credit.
Suggested resources:
- Equifax Permanent Security Freeze Page
- Experian Permanent Security Freeze Page
- TransUnion Permanent Security Freeze Page
STEP 3: Create your own real-time monitoring.
I would also recommend that if you have any credit or debit cards (checking account, etc.), to log in to your bank or credit union websites and ensure that you set notifications to either email or text you regarding suspicious activity or when a payment is made without the card present. Think about adding thresholds as well. For example, if you typically only withdraw amounts less than $100, then place a threshold alert to email or text you on anything withdrawn above $100.
STEP 4: Get a password manager.
Download your software of choice for managing passwords, such as KeePass or LastPass. Set your passwords to the maximum complexity on each website and ensure they are all different. This protects against thieves finding out one of your passwords and using it to attack on other websites. Of course, immediately change your password with any company with which you are currently doing business that you're aware has been breached, such as Anthem.
Please be aware that this is not a comprehensive list — but the most important is the identity theft insurance. The second most important resource is the credit freeze because this will stop identity thieves dead in their tracks.
If you have any questions, please feel free to contact me.
If this article just helps just one person, then that is a hat-tip to my late father, Mark Saunders. Dad, I think of you often and love you!
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