My SSN was Stolen

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As someone who’s spent 20 years in finance and a diligent user of a password manager, I never imagined I’d become a victim of identity theft. But a couple years ago, I discovered my Social Security number had been stolen. It was a frightening and eye-opening experience that made me realize how vulnerable we all are.

According to the Federal Trade Commission (FTC), identity theft cases have surged in recent years, with nearly 1.4 million reports in 2022—a 25% increase from the previous year. Many of these involve stolen Social Security numbers, which criminals use to open fraudulent accounts, claim tax refunds, and even apply for government benefits.

After going through this myself, I want to share what I learned about safeguarding your financial information and what steps you should take if you fall victim to identity theft.

The Dark Web: How I Discovered My Identity Was Stolen

The dark web is an underground marketplace where cybercriminals buy and sell personal data. One day, I received an alert from my employer that I applied for unemployment benefits. Panic set in immediately. With my Social Security number in the wrong hands, criminals could open credit accounts, apply for loans, or even claim unemployment benefits in my name.

NOT GOOD.

I immediately contacted my state’s employment office and local police to report the incident. I put a freeze on my credit. I received notices of an ATM card opened in my name and immediately contacted them too.

A federal agency hack compromised my SSN, and now I can only defend against future use of my SSN by taking the below measures.

1. Check Your Credit Reports Regularly

After discovering the theft, the first thing I did was check my credit reports. The three major credit bureaus—Equifax, Experian, and TransUnion—collect information on your credit history. Reviewing your reports can help you spot unauthorized accounts or suspicious activity.

You’re entitled to a free credit report from each bureau once a year via AnnualCreditReport.com. I now check mine at least twice a year to stay ahead of any potential fraud.

2. Freeze Your Credit (and How to Unfreeze It)

To prevent further damage, I froze my credit with all three bureaus. A credit freeze prevents anyone from opening new credit accounts in your name, even if they have your Social Security number. This is one of the most effective ways to protect yourself against identity theft.

Here’s how to freeze your credit:

• Equifax: Visit their website or call 1-800-685-1111.

• Experian: Freeze your credit online or call 1-888-397-3742.

• TransUnion: Go to their website or dial 1-888-909-8872.

Freezing and unfreezing your credit is free and doesn’t affect your credit score. If you need to apply for a loan or open a new account, you’ll have to unfreeze your credit, which you can do using a personal PIN.

3. Set Up Alerts and Use Two-Factor Authentication

After freezing my credit, I set up transaction alerts on my bank accounts and credit cards to detect any suspicious activity. I also activated two-factor authentication (2FA) on all my financial accounts, including hard-to-decipher passwords via 1Password. 2FA requires you to verify your identity with a second device, making it much harder for hackers to gain access to your accounts.

4. Place a Fraud Alert

If you suspect your identity has been stolen but aren’t ready to freeze your credit, placing a fraud alert is another option. This alert requires creditors to verify your identity before opening new accounts. It’s free and lasts for one year, with the option to renew.

You can set up a fraud alert by contacting one of the credit bureaus, which will notify the others on your behalf.

5. File a Report with the FTC

If you confirm that your identity has been stolen, file a report with the Federal Trade Commission (FTC). The FTC’s website, IdentityTheft.gov, offers a step-by-step recovery plan, from disputing fraudulent charges to closing unauthorized accounts.

Identity Theft: A Growing Threat

Identity theft is a rapidly growing problem. According to a Javelin Strategy & Research report, it cost Americans $52 billion in 2022, affecting over 42 million people. The rise in cybercrime and data breaches means protecting your financial information has never been more critical.

Cybercriminals are getting smarter, so safeguarding your identity requires a proactive approach. Regularly monitoring your credit, freezing your accounts, and using strong security measures can significantly reduce your risk.

Having my Social Security number stolen was a wake-up call. But it reinforced the importance of staying vigilant and using tools like credit freezes, and monitoring your accounts regularly can help safeguard your identity.

This is not about saving money. It’s about saving your identity!

Save On,

Chris