Are You a Prime Target for Identity Theft? 4 Key Factors to Consider

It’s easy to listen to the horror stories about identity theft and think that it could never happen to you. With data breaches impacting some of the biggest companies in the world — from Facebook and Google to T-Mobile and Uber — almost every person in the US is at risk of identity theft and fraud. In fact, sixty million Americans have been affected by identity theft, and 16 million of those cases occurred in 2017 alone.

What are the most common types of identity theft?

According to the Federal Trade Commission, the government agency that maintains a record for identity theft complaints, the crime falls into six major categories:

• Employment or tax-related fraud: using someone else’s social security number and other personal information to gain employment or to file an income tax return
• Credit card fraud: using someone else’s credit card or credit card number to make fraudulent purchases
• Phone or utility fraud: using another individual’s personal information to open a wireless phone or utility account
• Bank fraud: using someone else’s personal information to take over an existing financial account or to open a new account in another person’s name
• Loan or lease fraud: using someone else’s information to obtain a loan or lease
• Government documents or benefits fraud: using stolen personal information to obtain government benefits

While anyone can be targeted by a cybercriminal, there are several factors that put individuals even more at risk. Here are a few things to keep in mind:

Geography

Several companies have researched cases of fraud in an effort to spot trends and safeguard consumers, and most have hypothesized that where you live may increase your risk of identity theft. Arizona and Florida, two of the most popular retirement states in the country, are also some of the most vulnerable to identity theft. Maryland, Delaware, New Jersey, Connecticut, Rhode Island, California, New Hampshire, and Texas round out the top ten states most vulnerable to identity theft.

Your age

Many people assume that identity theft is something that only happens to the elderly. While seniors are largely impacted, young adults between the ages of 18 and 26 are among the most likely to be targeted. Many young people store their personal information on several smart devices, which gives cybercriminals several access points.

“Sixty million Americans have been affected by identity theft, and 16 million of those cases occurred in 2017 alone.”

Fraud affects children, too. A child can have their identity stolen long before they turn 18. There were more than 13,000 identity theft complaints to the Federal Trade Commission in 2017 impacting children, and Experian predicts that identity fraud will affect 25 percent of kids before they turn 18. Often times, parents don’t realize that their child has had their identity stolen until they apply for college or car financing. If you have a child, help secure their financial future by teaching them how to stay safe online at an early age, and be sure to check up on their credit no later than age 16.

Lazy passwords

Past data breaches have taught us that millions of individuals still use flimsy passwords like “123456” and, you guessed it, “password”, to login to secure web platforms. And worse, over half of Americans use the same password across all of their accounts. Let’s say Amazon experiences a data breach and someone accesses your account information. If you use the same login credentials to access your bank account, you could be in big trouble. Make 2019 the year you break your bad password habits. Stop storing your passwords in internet browsers, update your credentials regularly, and don’t share your login information with people you can’t trust.

Income

How much you earn annually can impact the likelihood of your identity being stolen. Cybercriminals specifically target individuals with high incomes for obvious reasons — wealthy people likely have more accounts in a variety of locations, giving hackers more opportunities to obtain information. The same is true for individuals with high credit scores. Be sure to check your credit report no less than every three months. If you detect suspicious activity on your credit report, learn how to report it immediately.

Defending yourself

Awareness is your best defense against identity theft. Make sure you regularly review your credit card and bank account statements. Compare your receipts with account statements and watch for unauthorized transactions. And familiarize yourself with your bank’s security features. Do you receive alerts if there is suspicious activity on your account? Can you freeze and unfreeze your card at your leisure? If not, it might be time to make a change.

At N26, we believe that security doesn’t have to be difficult. We’ll send you instant notifications whenever there’s activity on your account, and you can lock your card or block payments with a single swipe. Interested? Join our waitlist for early access.