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Course: Financial Literacy > Unit 8
Lesson 1: How to protect your personal informationIdentity theft
Identity theft is a growing problem that can have devastating consequences. This article will help you understand the risks, recognize the warning signs, and take proactive measures to protect yourself.
Personal identifiable information
Personal identifiable information (PII) is any information that can identify you as an individual. PII includes your name, Social Security number, credit card number, bank account number, etc. When someone steals any of your PII they can use it for identity theft.
What is identity theft?
Identity theft happens when someone uses another person's personal information, like their name, Social Security number, credit card number, or bank account number, to commit fraud or other crimes. It's an invasion of privacy and can cause lots of problems for the person whose identity is stolen.
The consequences of identity theft
If someone steals your identity, it can create a lot of problems for you. They might use your information to get a credit card and buy things, leaving you with a huge bill to pay. They might also steal your money from your bank account. This can damage your credit, which means it will be harder for you to get loans or credit cards in the future.
You might even have legal problems if the person who stole your identity uses it to commit crimes. Plus, it can be really upsetting and stressful to know that someone else is pretending to be you.
How do identity thieves get your information?
Identity thieves can get your information in a number of ways. One way they may do this is by stealing your wallet. This gives them immediate access to your debit and credit cards, your driver's license, or even your social security card.
Another way is by stealing your mail. If you receive bills or other important documents in the mail, thieves might be able to get your personal information from them.
Thieves might also get your information through data breaches. This is when a company's computer systems are hacked and the hackers are able to access the company's data. If the company has your personal information on file, the hackers might be able to get it. They will, then, sell your information to identity thieves or use your information themselves.
Identity thieves can also get your information through phishing scams. This is when someone calls you or sends you a fraudulent email or text message and tries to trick you into giving away your personal information.
There are many ways that identity thieves can get your personal information, so it's important to be careful about how you share your information and who you share it with.
An example of identity theft
Imagine that one day, you get a phone call from someone claiming to be from your bank. They say that there's been a security breach, and they need to confirm your account information. They ask for your name, Social Security number, and bank account number. You trust them because they sound official, so you give them the information.
Later, you find out that your bank account has been emptied and your credit card has been used to buy expensive things you didn't want. You've been a victim of identity theft.
Tips to protect your personal information
To avoid identity theft, it's important to protect your personal information. Here are some tips:
- Shred documents with personal information before you throw them away.
- Use strong passwords for your online accounts, and don't use the same password for everything.
- Check your credit reports regularly to make sure there are no mistakes or signs of fraud.
- Lock your devices, like your phone and computer, with a password or fingerprint so others can't access your information.
- Be careful about what you share online or over the phone. Don't give out your personal information unless you're sure it's safe.
By following these tips and being aware of the risks of identity theft, you can help protect yourself and your personal information from identity thieves.
Want to join the conversation?
Why do people shred documents with personal information before throwing it away?(2 votes)
There are certain low-life bottom-feeders who comb through the trash for any kind of personal information they can find, then use what they acquire to hack into people's personal accounts. Shredding is one way to deny them access to information about you.(6 votes)
I just use the same password for every site I need, which at this point in my life is just school and some entertainment sites like YouTube and Spotify. I'm not 18 yet, so should I be worried about identity theft and should I vary my passwords?(2 votes)- Pay attention to these things, and follow best practices, but don't go so far as to worry. That can consume your peace of mind.(4 votes)
- should you have your social security number memorized and is it like a credit card that you should carry with you everywhere?(1 vote)
- Your SSN is both private and useful. When I was in the Army, it's what we used for an ID number. When I was in college, it was used there, too. But that was a LONG time ago. Nowadays we are not so quick to bandy it around. BUT, you should at least have the final four digits firmly memorized, because sometimes those alone are used by systems to differentiate you from 9,999 other people who might have your same name.(4 votes)
whats the best way to protect my personal info?(1 vote)- Use passwords and 2-step authentication. It works for me.(4 votes)
- what is a social security card?(0 votes)
- The social retirement program, and central office for many government benefits in the USA, is called the Social Security Admininstration. US Citizens are enrolled into the program at birth, and get a 9-digit file number that they use for the rest of their lives. Each person enrolled receives a card with that number upon it. That card is informally known as the Social Security Card.(6 votes)
Is saving your passwords to your Google account or whatever type of password saving software you use a good idea? Because if someone hacks into your account then everything is gone, but that software might be stronger than those passwords individually.(1 vote)
A good password safe should allow you to set a strong password and set up multi-factor authentication. That second factor can even be a hardware token like a YubiKey.
That same password safe can also let you share passwords with a trusted family member. I share joint account information and emergency access with my husband.
My password safe also generates strong passwords (much better than using the same thing over and over everywhere) and checks for passwords that are duplicates or too weak.(3 votes)
- Is it a good idea to trust my parents with my SSN?(1 vote)
- If your parents are trustworthy, then go ahead.
Sadly, some parents are not trustworthy.(3 votes)
- If someone has dementia or if they are older how should they remember their passwords?
Is it safe to keep your passwords written down?
Is it safe to download password saver apps?(probably not)
Just some questions I was wondering about, maybe some questions someone else is wondering about. :)(1 vote)- Are you on the cusp of dementia? Is someone whom you know or love on the cusp of dementia? Perhaps, if dementia is "in the cards" for you or someone you know, a project to reduce the number of accounts requiring passwords would be in order. It's likely that a psychiatric social worker could help with this.(2 votes)
- How do you keep your identity away from hackers if they threaten you?(1 vote)
- should you have your social security number memorized and is it like a credit card that you should carry with you everywhere?(1 vote)
- I once had a Social Security Card, but lost it when I was 18 or 19. I've lived without it ever since, and now I'm 72. The only card that I was ever instructed to carry with me everywhere was my draft card, but then those stopped being issued in 1972, so all's well.(1 vote)