Suspicious emails, calls from unknown numbers, and convincing AI videos have become a common reality in today’s digital age. Fraudsters and hackers have also become more sophisticated, using advanced technology to access your personal and financial data. Protecting your information is crucial to help avoid costly losses and identity theft. In the first part of this two-part series, we’ll cover the common forms of identity theft you should be aware of to identify and avoid cyber threats. In this in-depth video, listen as Brown Financial Advisory President Scott McLeod shares what to watch out for and how to prevent being a victim:
Don’t Be Fooled — You Have (Probably) Already Been Hacked!
In today’s age, it’s almost impossible to avoid scammers accessing your sensitive personal information online. With major hacks over the past 10 years alone, billions of people’s data — including Social Security numbers, credit card and bank account information, driver’s licenses, passwords, and more — is circulating on the dark web. On this hidden online platform, data, drugs, and more are exchanged. While you may not have experienced lost funds or credit theft directly, major hacks at companies such as Yahoo, Capital One, and Equifax mean your data is likely already being bought and sold for nefarious purposes. The fallout from a hack can lead to significant stress and financial loss as you trace the criminals, try to recoup lost funds (if ever), and rebuild damaged credit. The thought of a cyberattack is scary, but it’s part of our modern world. However, by getting informed and taking proactive steps, you can better protect yourself from being an easy target for hackers. Let’s review the common forms of identity theft to watch out for.
What are the Risks? Common Forms of Identity Theft
While emerging technology is making hacks easier and more prevalent, knowing the common threats and what to spot can help you avoid becoming low-hanging fruit for cybercriminals.
Credit Card Theft
Credit card theft is a very common form of identity theft. If you’ve ever had to replace a card for suspicious activity or unauthorized purchases, you’ve probably already been a target. Credit card theft can occur when your card is stolen, through a data breach, or via a phishing scam. Phishing is when sensitive information is gained through illegitimate emails, links, or other communications that appear to be coming from a real company, bank, or other organization you trust. These messages often seem urgent and demand immediate action to “resolve,” which can lead you to unintentionally share sensitive information with a scammer. Credit card theft is inconvenient but generally is a low-level risk. You can typically address a hack through your credit card company, which can cancel your current card, reissue a new one, and help you recoup your funds.
Social Security Identity Theft
A far more severe threat is Social Security identity theft, in which scammers can use your Social Security number as a key identifier for financial or governmental services. A cybercriminal may use your Social Security number to apply for credit or even gain employment. They may also use your Social Security number to file fraudulent tax returns and claim your refund, also known as tax identity theft. Addressing this type of hack is much more in-depth, requiring you to file a police report, freeze and monitor your credit, and ensure your work history and taxes are accurate, which could take months or years to manage and correct.
Medical or Medicare Identity Theft
Medical identity theft is when perpetrators use your medical or Medicare details to receive medical procedures, benefits, or prescriptions. As a result, billing and medical records could be falsified, impacting your future medical care, insurance coverage, and debt you’re responsible for. Mixing your medical history with information a scammer provides could be dangerous to you in the future. If you think you’ve been a victim of medical identity theft, you should contact your insurer and verify your files and charges are accurate.
Account Takeover
Scammers may also use malware, phishing, or data breaches to take over your email, social media accounts, or bank accounts entirely. A hacked social media account can range from inconvenient to stressful, especially if the scammer contacts your friends and family impersonating you or makes demands for money. However, an email or financial account can be extremely difficult to address and untangle. Often, when fraudsters access credentials on one account, they gain access to multiple accounts by quickly changing your passwords and recovery devices, forwarding your emails to their accounts, and possibly finding other sensitive details for their use.
Ransomware
Malware is another tool scammers use to lock your accounts and essentially hold them hostage until you pay a ransom. Many individuals and business owners have fallen victim to ransomware, becoming unable to access their accounts, files, systems, and networks unless they meet financial demands, sometimes in the millions of dollars. Contact law enforcement for next steps in managing a ransomware threat, as paying immediately does not guarantee you’ll recover your data.
Deepfake Technology
Perhaps one of the most insidious threats is deepfake technology, in which scammers can create fake, yet convincing, audio or video impersonating someone else using AI and other tools. The technology often recreates a voice or image gathered from social media or other public platforms. This could be a phone call or even a video chat in which a scammer may appear as an authority, family member, or someone else you trust, requesting a financial transfer or claiming they’re in dire need, for example. As technology evolves and AI becomes more sophisticated, it’s even harder for the untrained eye to spot fakes. Treat red flags like uncharacteristic urgency, strange requests, or even lighting and voice discrepancies as suspicious, and approach them with caution.
Detecting CyberThreats
The scope of digital threats today can feel overwhelming and scary, but protecting your and your family’s information is a priority. It’s critical to stay vigilant and proactive so scammers can’t easily access your data. Our True Life Planning Cycle helps our clients maintain a comprehensive view of their finances. By addressing various facets of your financial life, the process may help identify potential issues while providing complete solutions to support keeping your money and goals on track.
If you’re concerned about your financial information or other sensitive data, stay tuned for the second part of this series, where we’ll share seven actionable strategies to hackproof your life. We also encourage you to contact our team, as well as your other service providers, to verify your information, ensure accuracy, and strengthen your security.
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