If the most recent Equifax breach has shown us anything, it’s that identity theft is not just about checking on accounts or credit cards, that’s bank fraud.
Most banks are actually very good about that and it occurs on accounts you are already aware of.
When a brand new business gets opened with your credentials, without your knowledge, that is when there’s a bigger problem.
The Threat of Identity Theft
These credentials are stolen, sold and most of us will never be made aware until we try to apply for unemployment.
It’s only then you find the benefit exhausted, or we apply for a student loan and, well…New business including driver’s licenses, health insurance, welfare, tax returns or even fraudulently collecting social security benefits, is exactly how thieves profit from your credentials.
What about any of that has to do with credit?
Nothing, but your credit history and even more challenging, wage garnishments and seizures, are left for you to deal with, possibly jeopardizing approval for student loans.
(Bonus Tip: Liking these tips so far? Take 10 more for free! The Ultimate Student Loan Resource Library has 10 of the most important things to know about student loans so you can pay off your loans the smartest and easiest way possible. Click here to learn more and to get the free guide.)
2017 is not near over and the Equifax breach of 144 million people makes this year’s total 163 million people affected by identity theft.
Did I mention this year?
Since 2000, there have been over 260 million records exposed or stolen by hackers or just plain carelessness.
On average, there are roughly 3 million complaints filed every year, according to the Federal Trade Commission, serving as its largest consumer complaint.
We’re already exposed and the threat is not going away.
When anyone becomes an actual victim is anyone’s guess.
That doesn’t mean that we should make it easier for these people.
There are things to watch for and also things you can’t control.
Most students don’t think of themselves as potential targets because they’re not quite there with finances and credit.
As I just pointed out, most of that doesn’t matter.
Here are a few things to pay attention to:
Don’t sign up for a credit card at a table on campus!
Can you visualize this scene?
A table located in the middle of a high-traffic area near a college campus.
They’re offering free T-shirts for completing a credit card application!
There are plenty of unsuspecting people in line willing to provide their name, Social Security Number, date of birth and driver’s license number to complete a credit card application.
For a t-shirt!
In college, I would write entirely fake info, if the t-shirt was cool enough.
Here are a few questions that should enter your mind:
- What happens to my information?
- Who will see it?
- Will they copy it?
- Will it be securely stored?
- Are any “application collectors” working for identity thieves?
- Is this a scam just to capture information?
There are too many risk factors in this situation, so walk away!
Be vigilant about protecting your digits.
Your nine-digit social security number is the key to getting credit and identification documents in your name.
Your mail provides many sources of information for your thief.
Try to protect your mail and reduce the number of sensitive items that you receive.
Pick up your mail as soon as possible to reduce the odds of your thief getting it first.
Put your out-going mail containing sensitive information in a locked U.S. Post box, or your building’s locked mailbox, or take it to the post office.
Sign-up for online statements and bill-paying whenever possible and ask your creditors not to mail paper statements.
Online monitoring of accounts significantly increases your ability to detect identity theft early, such as small “test amounts” that can go unnoticed.
The 2005 BBB/Javelin study showed the average fraud amount was $551 dollars when victims detected fraud through online monitoring.
Victims suffered an average of $4,543 in fraud when depending on review of paper statements.
Submit a change of address to your post office a few weeks before you move.
You want to ensure that your mail doesn’t continue to show up at your old address after you’re gone.
(Bonus Tip: Liking these tips so far? Take 10 more for free! The Ultimate Student Loan Resource Library has 10 of the most important things to know about student loans so you can pay off your loans the smartest and easiest way possible. Click here to learn more and to get the free guide.)
Shred everything you don’t want to share with an identity thief.
If you’re not sure, shred it.
Your thief will gladly sort through your garbage looking for interesting information.
Buy a cross-cut shredder, not a strip-cut shredder.
A dedicated thief will assemble strip-cut shreds.
Encourage your friends to buy shredders too.
No one should start college without a shredder.
Looking for a job as you’re getting close to graduation can make you very susceptible.
You’ve put in the hard work to earn your degree and you’re ready to make some money.
You’ll send in hundreds of resumes to prospective employers, post resumes at online web sites, and complete several job applications.
It’s an exciting time, but be careful.
There are identity thieves waiting to take advantage of your zeal to find a new career.
Be cautious about providing your bank account number, social security number, date of birth, gender, race, and any sensitive personal information.
You’ll eventually have to give your social security number to an employer, but wait until you’re near a deal and you’re comfortable with the legitimacy of the employer.
No one should be asking you for this info until an interview or two, when you’re invited to apply, and no employer asks for this over the phone.
There are scams where thieves post fake job ads.
They contact you with a lucrative job offer, but they need to conduct a background check first.
Of course, they ask you to provide sensitive identification data.
You want the job so you’re tempted.
Pay attention to the red flag that should have flashed before your eyes.
Some employers will want to check your credit reports as part of their background checks.
They have to get your written permission.
You should get copies of your credit reports before you start job hunting to ensure accuracy.
On top of all of this, exercise common sense.
There a multitude of scams out there like the phone solicitor (counting on your manners), the deposed Nigerian Prince e-mail, or phishing (no bank notifies you of fraud via email!).
War driving is where a thief parks outside a Starbucks or has a room in a nearby hotel and uses a satellite dish to suck in your information via hotspots.
Rarely are these hotspots protected and you agree to the risk when you log on.
Do your best and good luck!
We live in an open society and sadly, these can be some of the pitfalls.
(Bonus Tip: Liked these tips? Take 10 more for free! The Ultimate Student Loan Resource Library has 10 of the most important things to know about student loans so you can pay off your loans the smartest and easiest way possible. Click here to learn more and to get the free guide.)
Have you ever had your identity stolen? Do you agree that the risk is particularly high for students? Let us know in the comments below.
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