The Federal Trade Commission (FTC) received over 1.1 million reports of identity theft in 2024 alone. While modern technology certainly makes our lives more convenient, it also opens up new avenues for criminals to exploit. Safeguarding your information means staying a step ahead of schemes designed to steal it.
This post will explore six common identity theft tactics criminals use and explain how to prevent identity theft before it happens.
6 Common Identity Theft Tactics
Understanding how criminals operate is the first step toward protecting yourself. Here are six tactics they frequently use to steal personal information.
1. Social Engineering
Social engineering is a manipulation technique used to trick people into divulging sensitive information. Attackers might call, email, or even approach you in person, often exploiting trust, creating a sense of urgency, or using fear to get what they want. They rely on human psychology rather than technical hacking to bypass security measures.
2. Phishing
Phishing is a specific and widespread type of social engineering. It involves fraudulent emails, text messages, or websites that impersonate legitimate organizations like your bank, a government agency, or a popular online store. The goal is to deceive you into clicking malicious links, downloading harmful attachments, or entering your passwords and credit card numbers.
3. Malware
Malicious software, or malware, is designed to infiltrate your devices without your knowledge. Types like trojans, keyloggers, and spyware can be installed when you click a bad link or download an unsafe file. Once active, this software can capture your login credentials, monitor your online activity, and steal data directly from your computer or phone.
4. Skimming
This tactic involves physical devices. Criminals place hidden “skimmers” on ATMs, gas pumps, or point-of-sale (POS) terminals to illegally copy the data from your card’s magnetic stripe. They often pair these devices with tiny, hidden cameras to record you entering your PIN, giving them everything they need to clone your card.
5. Credential Stuffing & Account Takeover
When a company experiences a data breach, stolen usernames and passwords often end up for sale online. Criminals buy these lists and use automated software to “stuff” those credentials into login portals across the web, hoping you reused the same password elsewhere. Once they gain access, they can change your password, lock you out, and make fraudulent purchases.
6. Mail Theft & Dumpster Diving
Not all identity theft tactics are digital. Thieves still resort to stealing physical mail from unsecured mailboxes or rummaging through trash bins. They search for discarded bank statements, credit card offers, medical bills, and other documents that contain your name, address, account numbers, or other personally identifying information.
How to Prevent Identity Theft
You can significantly improve your personal information security with a few proactive habits. Here’s how:
1. Scrutinize Unsolicited Messages
Be highly skeptical of emails, texts, or calls that request personal data or urgent action. Always examine the sender’s email address or phone number. Scam emails often use misspelled company names or unofficial domains. Instead of clicking on any links, contact the organization directly using information from their official website or another trusted source before responding.
2. Inspect Payment Terminals Before Use
Always check ATMs, gas pumps, and card readers for signs of tampering before inserting your card. Skimming devices can look like normal parts of the machine but might be loose, uneven, or stand out in color. If something seems off, don’t use that terminal and report it to the business right away.
3. Use Professional Shredding for Sensitive Documents
Never toss documents containing private information into the trash whole. Shredding papers yourself is better than nothing, but professional shredding offers a higher level of security. These services use specialized equipment to ensure your financial statements, medical bills, and other paperwork are destroyed and cannot be reconstructed.
They also offer different services like scheduled shredding that allow businesses or individuals to safely dispose of sensitive documents on a regular basis. Or media destruction services, which focus on securely destroying electronic storage devices like hard drives, USB drives, and CDs.
Additionally, many professional shredding services adhere to strict industry standards and provide certificates of destruction as proof that your sensitive information has been properly disposed of. Leveraging these services not only helps protect your personal and business data but also promotes responsible information management practices.
4. Strengthen Your Online Account Security
Create strong and unique passwords for every online account. Avoid easily guessed details like birthdays or common words. A password manager like Last Pass can help generate and store complex passwords. Always turn on two-factor authentication (2FA) for an extra layer of protection, and install reputable antivirus software to block malware and keyloggers.
5. Be Aware of Your Surroundings When Entering Private Information
When in public, shield your screen or keypad when entering PINs and passwords. Avoid conducting sensitive activities—like online banking or working with client information—on unsecured public Wi-Fi. If you need to access personal or work accounts in public settings, consider using a VPN to keep your connection private.
6. Safeguard Physical Mail
If possible, install a locking mailbox or rent a P.O. box for receiving sensitive mail such as bank statements and credit card offers. Promptly collect mail every day to minimize the chance of theft, and never leave outgoing mail in an unsecured location.
What to Do if You’re a Victim
If you suspect your identity has been stolen, act quickly.
Step 1: Report the Theft
Go to the FTC’s official website, IdentityTheft.gov. You can report the crime and receive a personalized recovery plan to guide you through the next steps.
Step 2: Contact Credit Bureaus
Place a fraud alert or a credit freeze with the three major credit bureaus: Equifax, Experian, and TransUnion. This will make it harder for the thief to open new accounts in your name.
Step 3: Notify Your Financial Institutions
Immediately contact your bank and credit card companies. Close any compromised accounts, dispute fraudulent charges, and request new cards and account numbers.
Conclusion
Awareness of common identity theft tactics is your strongest defense. By taking proactive steps to protect both your digital and physical data, you can build a formidable defense against criminals. Simple habits and smart decisions are key to strong information security. Remember that practices like professional shredding are not just for businesses; they are a vital tool for safeguarding your personal documents.
Review your security practices today. To secure your sensitive papers and protect yourself from dumpster divers, contact us to learn more about our professional shredding services.
