By Ryan L. Kaiser, CFE, Assistant Fraud Risk Manager, Canandaigua National Bank & Trust
During the first two years of the COVID-19 pandemic, reported incidents of fraud and identity theft increased in frequency substantially. According to the FTC, identity theft complaint frequency rose 113% year-over-year during 2020, with 33% of adults in the United States experiencing some form of identity theft. During 2021, complaint volume grew again, with identity theft comprising about 24% of the 5.9 million overall complaints related to fraud. During this time, the most common complaint types involved government documents / benefits fraud.
For the first six months of 2022, the FTC has reported a mild reduction in year-over-year identity theft complaint volume. 604,000 incidents were reported year-to-date, with schemes most commonly involving credit card fraud attempts. Despite this mild decrease, clearly, identity theft is a problem that is not going away anytime soon. Review the following methods utilized by bad actors to steal identities and consider the following best practices!
- Lost wallets or purses – easy access to credit cards, debit cards, social security cards, drivers’ licenses, and other sensitive documents.
- Mailbox theft – checks, bank statements, and other sensitive account information can be obtained by bad actors through simple theft.
- Public Wi-Fi hacking – unsecured connections shouldn’t be utilized for shopping, banking, or sensitive transactions, as information can be intercepted by fraudsters!
- Data breaches – according to the Identity Theft Resource Center’s report on 2021 breaches, there were over 1,800 unique data breach events throughout the year.
- SIM card swaps – fraudsters take over a phone number without authorization from the consumer.
- Phishing, SMShing, spoofing – bogus outreach attempts via email, text message, or phone call which aim to trick consumers into turning over personal information.
- Skimming – the act of fraudulently obtaining credit card information from a device installed at a gas pump or ATM.
- ‘Shoulder surfing’ – fraudsters can obtain passwords or card numbers by looking over your shoulder or watching you type on your device.
- Malware – opening a malicious email attachment or link can deploy software on your device, such as a keylogger. Once installed, bad actors use this information to steal usernames, passwords, and other sensitive information.
- Trust your gut – if you receive an unsolicited phone call, text message, or email and something seems ‘off’, you are probably correct; do not engage!
- Check financial or bank statements regularly, reviewing judiciously for unauthorized / irregular activity, transactions that you did not initiate, or anything else that seems out of the ordinary.
- Check credit reports regularly for potential fraudulent loans or lines of credit opened in your name.
- Use strong, complex passwords, which are frequently updated.
- Do not use the same password for multiple accounts.
- Use multi-factor authentication on accounts where it is available.
- Be cautious about what information you share online via social media; consider adjusting your privacy settings on social media profiles.
- Avoid social media quizzes which poll users for specific personal information - fraudsters can leverage this data to commit identity theft!
- Consider going paperless for bills or account statements to mitigate potential document theft risk.
- Safely dispose of old or outdated documents containing personal information, such as old credit cards, tax returns, medical records, bank statements, or utility bills.
If your identity has been stolen – consider the following steps –
- Contact the companies where the fraud occurred to inform them of the incident.
- Report the incident to the FTC.
- Consider setting up a credit freeze or block with the credit bureaus for protection moving forward.
- Consider having your devices checked by an IT professional for potential malware/virus threats.
- Change applicable passwords.
- Notify your bank.
- Consider closing an account and opening a new one if the incident occurred with a service provider you do conduct business with.
- Report the incident to law enforcement if you feel inclined.
Questions related to identity theft or fraud? Feel free to contact us for additional information.
- CNB Security Center contains relevant fraud articles and resources.
- CNB offers customer-centric seminars hosted throughout the year- CNBank.com/EducationalEvents.
- Certified fraud professionals are available to assist when you need it.
- Follow us on social media to stay up to date on emerging trends and fraud threats.