How to Safeguard Your Data and Protect Against Identity Theft: A Comprehensive 10-Step Guide

I’m often asked how to reduce exposure to identity theft and what steps to take to safeguard yourself and your family.

The most important advice I can offer is to start by understanding your potential exposure. It is crucial to be proactive and create a plan for yourself and your family to stay ahead of cybercrime and identity theft.

The risk of cybercrime and identity theft is greater than ever. Whether you’re shopping online, part of a data breach, logging into a bank account, or sharing personal details on social media, your data is constantly at risk.

As threats evolve and data breaches continue to skyrocket, taking proactive measures to secure your personal information both online and offline is essential.

Understanding your options and where to start is critical to prevention and remediation if you become a victim. To stay ahead of the threats, you have to do the work and be your own best ally.

In this article, I’ve outlined best practices for securing yourself, monitoring for suspicious activity, freezing your credit, and more.

Best Practices for Securing Personal Data Online and Offline

Online Security Tips:

  • Use Strong, Unique Passwords or Passphrases: Each online account should have a unique password. Ideally, passwords should be a combination of upper and lowercase letters, numbers, and symbols. To manage these, use a password manager such as LastPass or Dashlane. These tools store and generate secure passwords automatically.
  • Here is a free tool where you can create your own: https://bitwarden.com/password-generator/#password-generator
  • Enable Multi-Factor Authentication (MFA): Add an extra layer of security by enabling MFA wherever possible. Services like Google Authenticator, Microsoft Authenticator, or even SMS codes provide additional verification, ensuring that even if your password is compromised, an attacker still needs a second step to access your account.
  • Secure Browsing with VPNs: Public Wi-Fi networks are often vulnerable to cyber-attacks. Use a virtual private network (VPN) to encrypt your internet connection when browsing on unsecured networks. Popular VPN providers include Norton, NordVPN, and ExpressVPN.
  • Beware of Phishing Scams: Be cautious about unsolicited emails or messages asking for personal information. Phishing scams often pose as legitimate companies, tricking users into sharing sensitive details like passwords or financial information. Always verify the source before clicking links or downloading attachments.
  • Install Security Software: Antivirus programs like Bitdefender, Norton, and Kaspersky help protect your device from malware, ransomware, and other threats. Make sure your antivirus software is always up-to-date.

Offline Security Tips:

  • Shred Sensitive Documents: Bank statements, credit card offers, and any paperwork containing personal information should be shredded before disposal to prevent dumpster divers from stealing your identity.
  • Lock Down Physical Devices: Keep your smartphone, laptop, and other devices secured with a passcode or biometric lock (such as fingerprint or facial recognition). Never leave these devices unattended in public spaces.
  • Secure Your Mailbox: A locked mailbox or using a mail-holding service while away can prevent thieves from physically stealing mail, such as credit card offers or tax information, which could be used to commit identity fraud.

Monitoring Credit Reports and Accounts for Suspicious Activity

Regular monitoring of your credit reports and financial accounts is a critical step in early detection of identity theft.

  • Check Credit Reports Regularly: Federal law allows you to request a free credit report from the three major credit bureaus (Equifax, Experian, and TransUnion) every 12 months via AnnualCreditReport.com. Spread out your requests across the year (one report every four months) to consistently monitor for errors or suspicious activity, such as unfamiliar loans or accounts.
  • Monitor Financial Accounts: Keep an eye on your bank and credit card statements for unusual transactions. Many financial institutions offer real-time alerts for large purchases or transactions made in unfamiliar locations. You can typically set up notifications via their apps or websites.
  • Use Credit Monitoring Services: Consider subscribing to a credit monitoring service like Identity Guard or LifeLock, which will alert you to any significant changes in your credit report. Some banks and credit card companies also offer this service as a free perk.

How to Set Up Credit Freezes and Fraud Alerts

A credit freeze (also known as a security freeze) restricts access to your credit report, making it more difficult for identity thieves to open accounts in your name. Freezing your credit is free and can be done through the major credit bureaus.

Here’s how you can freeze your credit:

  • Equifax: Visit Equifax’s website or call 1-800-349-9960.
  • Experian: Freeze your credit via the Experian website or call 1-888-397-3742.
  • TransUnion: You can freeze your credit through the TransUnion website or call 1-888-909-8872.

To lift your freeze, you’ll need to visit the bureau websites again and use the PIN or password provided when you initiated the freeze.

Additionally, you can set up fraud alerts to notify potential creditors that they should take extra steps to verify your identity before opening an account. These alerts can be placed with any of the three credit bureaus and typically last for one year.

Multi-Factor Authentication (MFA): A Must for All Accounts

Enabling MFA on your accounts is one of the simplest and most effective ways to prevent unauthorized access. With MFA, even if a hacker gets your password, they’ll need a second form of verification to access your account. MFA can come in various forms:

  • Authenticator Apps: Apps like Google Authenticator, Microsoft Authenticator, and Authy generate time-sensitive codes for secure logins.
  • SMS Codes: Many services send a one-time passcode via text message to your phone.
  • Email Verification: Some services require you to confirm login attempts through your email account.

For your highest-risk accounts—like banking, email, and social media—always enable MFA. These accounts are prime targets for hackers looking to commit identity theft or fraud.

How Often Should You Review and Update Privacy and Security Settings?

Regularly updating your security settings and passwords is crucial for maintaining privacy and protecting against threats. Here’s a general guideline for how often to review and update these settings:

  • Passwords or Passphrases: Change passwords every 3-6 months, especially for sensitive accounts (e.g., banking, email). Do not reuse passwords across multiple accounts. If you are concerned about keeping track of passwords, leverage a password manager or write them down in a notebook, and keep it secure.
  • Privacy Settings on Social Media: Review your privacy settings on platforms like Facebook, Instagram, and Twitter every 3-6 months. Limit what information is visible to the public, and ensure you’re not sharing personal data that could be exploited by attackers.
  • Software Updates: Make sure to install software updates as soon as they become available. These updates often contain security patches that protect against newly discovered vulnerabilities.

Additional Tips for Protecting Your Identity

  • Use Encrypted Messaging Services: Apps like Signal and WhatsApp offer end-to-end encryption, ensuring that messages between you and the recipient can’t be intercepted by third parties.
  • Be Wary of Public Wi-Fi: If you must use public Wi-Fi, avoid accessing sensitive accounts like banking apps. Consider using your mobile data instead or a VPN to secure your connection.
  • Limit What You Share: Be mindful of oversharing on social media. Avoid posting sensitive information such as your home address, phone number, or travel plans, as this can make you more vulnerable to identity theft.
  • Secure Smart Home Devices: Many smart home devices, such as security cameras or voice assistants, are susceptible to hacking. Change the default passwords on these devices, and ensure that they are connected to a separate Wi-Fi network from your devices.

Securing Your Banking and Credit Card Accounts

Your banking and credit card accounts are prime targets for identity thieves. Securing these accounts requires a multi-layered approach to ensure that unauthorized access is difficult, if not impossible.

  • Enable Multi-Factor Authentication (MFA): Make sure that all your banking and credit card accounts have MFA enabled, ideally using an authenticator app rather than SMS for added security. Many banks now offer push notifications or token-based authentication for safer logins.
  • Set Up Alerts: Take advantage of alert features offered by banks and credit card companies. You can set up alerts for large transactions, logins from new devices, or transactions made outside your usual geographic area. These real-time notifications allow you to catch fraudulent activities quickly.
  • Use Virtual Card Numbers: Some banks and credit card providers offer virtual card numbers, which are temporary numbers that can be used for online purchases. This protects your actual card number from being exposed to potential hackers or fraudulent sites.
  • Regularly Review Statements: Even with these measures in place, it’s important to manually review your bank and credit card statements every month. Look for small, unfamiliar transactions, as fraudsters often start with minor charges before escalating.

By taking these steps, you can make it significantly more difficult for attackers to gain access to your financial accounts and quickly detect any unauthorized activity if it does occur.

Securing Your Mobile Carrier Account

One of the less obvious but critical areas to secure is your mobile carrier account. Hackers have increasingly targeted these accounts through SIM-swapping attacks, where they trick the carrier into transferring your phone number to a new SIM card.

Once they control your phone number, they can intercept two-factor authentication (2FA) codes sent via SMS and gain access to your online accounts.

To prevent this from happening, ensure that you are the only person authorized to make changes to your mobile carrier account by following these steps:

  • Set Up a PIN or Passcode: Contact your carrier and request that they place a PIN or passcode on your account. This will be required any time changes are made, such as transferring your number or updating account information.
  • Enable Extra Security: Many carriers offer additional security features, such as requiring in-person identification to make changes or setting up account-specific security questions. Check with your carrier for available options.
  • Monitor Your Account for Suspicious Activity: Keep an eye on your mobile account for any unauthorized changes. If you notice anything unusual, contact your carrier immediately to prevent further action.

Acquiring an IRS Identity Protection PIN (IP PIN)

To protect yourself from tax-related identity theft, the IRS offers an Identity Protection Personal Identification Number (IP PIN) that adds an extra layer of security when filing your taxes.

An IP PIN is a six-digit code that only you and the IRS know, preventing someone else from filing a fraudulent tax return in your name.

Here’s how to obtain one:

  • Apply for an IP PIN: You can apply for an IP PIN by using the IRS’s Get an IP PIN tool on their website. The application process requires verifying your identity through an online account with the IRS.
  • Annual Updates: Once you receive your IP PIN, it will change annually, and you’ll need to use the updated PIN when you file your federal tax returns. The IRS will issue a new IP PIN each year to ensure continued protection.
  • Paper Filing: If you file your taxes by mail, you’ll need to include your IP PIN on your tax forms to verify your identity.

By acquiring and using an IP PIN, you can significantly reduce the risk of tax fraud, ensuring that only you can file a legitimate return under your Social Security number.

Identity Monitoring Services: Aura, LifeLock, and Others

In addition to taking personal steps to safeguard your identity, several top-tier services offer comprehensive monitoring and restoration support. Services like Aura and LifeLock provide real-time monitoring of your data across various channels, including credit reports, social media accounts, bank accounts, and the dark web.

These services can alert you to suspicious activity, such as new credit applications or unauthorized use of your Social Security number. They also provide identity restoration services, working directly with credit bureaus and financial institutions to help restore your identity if it’s compromised.

  • Aura: Offers 24/7 identity and credit monitoring, social security number protection, and up to $1 million in insurance for eligible losses due to identity theft.
  • LifeLock: Provides credit monitoring, alert services, and personal expense compensation up to certain limits, along with dedicated specialists to help resolve identity theft incidents.
  • Other Services: Companies like IdentityForce and Identity Guard also provide competitive protection, monitoring everything from public records to dark web activity. These services give you peace of mind by constantly checking for vulnerabilities, so you can respond quickly if a breach occurs.

Summary

  1. Best Practices for Securing Personal Data: Use strong, unique passwords, enable multi-factor authentication, be wary of phishing scams, and secure both online and offline data with tools like VPNs and document shredders.
  2. Monitoring Credit Reports and Accounts: Regularly check your credit reports and financial statements for unusual activity. Use free credit monitoring tools and set up transaction alerts for real-time updates.
  3. Setting Up Credit Freezes and Fraud Alerts: Freezing your credit with Equifax, Experian, and TransUnion is an effective way to prevent identity thieves from opening accounts in your name. Fraud alerts also add an extra layer of verification.
  4. Multi-Factor Authentication (MFA): Enable MFA across all critical accounts using tools like Google Authenticator to add a second layer of protection.
  5. Reviewing and Updating Security Settings: Regularly update passwords, review privacy settings on social media, and ensure your software is current to minimize vulnerabilities.
  6. Additional Tips for Identity Protection: Use encrypted messaging apps, avoid public Wi-Fi for sensitive transactions, limit the personal information you share online, and secure your smart home devices with strong passwords.
  7. Securing Your Mobile Carrier Account: Protect your mobile account from SIM-swapping attacks by adding a PIN or passcode and enabling extra security measures through your carrier.
  8. Securing Banking and Credit Card Accounts: Enable MFA, set up transaction alerts, use virtual card numbers for online purchases, and regularly review statements to catch any unauthorized activity.
  9. Acquiring an IRS Identity Protection PIN (IP PIN): Apply for an IRS IP PIN to protect your tax filings from fraud, ensuring that only you can file a legitimate tax return under your Social Security number.
  10. Identity Monitoring Services (Aura, LifeLock): Consider using identity monitoring services like Aura or LifeLock to receive alerts about suspicious activity, monitor your data across multiple platforms, and get professional assistance if your identity is compromised.

By following these steps, you can take control of your data, create new security habits, strengthen your defenses against identity theft, and quickly respond if your information is ever at risk.

Comprehensive security requires a combination of personal vigilance, using advanced tools like MFA and credit freezes, and considering professional services to help monitor and restore your identity if needed.

If you would like to learn more about practical steps to protect yourself and your family, you can pick up a copy of my book Privacy Pandemic: How Cybercriminals Determine Targets, Attack Identities, and Violate Privacy―and How Consumers, Companies, and Policymakers Can Fight Back.

Finally, if you or someone you know has been a victim of identity theft, please visit the Identity Theft Resource Center for additional support and more information.