Recently, I read about identity theft. But what exactly is identity theft?
Identity theft or ID theft is when someone steals your personal or financial information and uses it to commit fraud, in your name.
What kind or fraud? Why is identity theft so bad?
ID theft can have a huge financial impact, since the stolen information can be used to apply for credit cards, withdraw money from your bank accounts, take out loans or make unauthorized purchases using your existing bank accounts or credit cards. Identity theft can also result in a damage to your credit score, and it could cost a great deal of time and money to restore your good credit.
How do I know if I am a victim of identity theft?
If you regularly review your credit report, you can spot signs of identity theft early on by looking for new accounts that have not been opened by you, and other unusual financial activity. You are also probably a victim of ID theft if you receive bills for things you didn’t buy, start getting debt collection calls for accounts you didn’t open or there is a sudden drop in your credit score.
How can I prevent identity theft?
The best way to prevent ID theft is by keeping your identity and financial information out of reach of others. This includes not sharing your social security number and other personal information like your birth date, and safely shredding old receipts, account statements, credit cards, etc.
You should also keep your online activity protected by using secure internet connection and keeping your anti-virus software up-to-date.
But if I still become a victim of ID theft what should I do?
That’s an excellent question, Sooper Cooper, but that’s a topic for another time…
Podcast: What is Identity Theft
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about identity theft: What is Identity Theft, Why is identity theft so bad, How do you know if you are a victim of identity theft, How can you prevent identity theft, If you become a victim of ID theft what should you do, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/what-is-identity-theft/