Guarding Against Identity Theft

Seniors are at a greater risk for identity theft than most people. Learn how to guard against identity theft and spot suspicious signs of fraud. Catch identity theft early, before it damages your finances.

The Issue

Identity theft is a rapidly growing crime in the United States. About 10 million people are victims of this damaging crime each year. Seniors are especially vulnerable to these crimes because:

• Seniors often have higher cash reserves and home equity than others
• Seniors are usually less technologically savvy and do not research scams online
• Seniors do not monitor their credit and financial accounts very closely
• Retirement home staff and other assistants may have access to and take advantage of a senior's personal records

According to a recent survey by Experian, 11% of people over the age 65 reported that they have had their financial information stolen.

The Crimes

The types of identity theft crimes seniors experience are similar to those impacting the rest of the population. Along with basic credit card fraud, seniors are at risk for large identity theft compromises involving loans, Social Security numbers, and insurance. Here are some of the ways that thieves can obtain personal data:

• Dumpster diving – Digging for personal information in the trash of homes and businesses.
• Phone scams – Seniors are particularly vulnerable to fraud by phone. Thieves may pose as insurance companies, charities, or other businesses in order to gather personal data over the phone.
• Personal theft – Theft of personal information by an employee, nurse, relative, or friend.
• Wallet theft – The theft of a purse or wallet. Seniors are more likely to carry their Social Security card or Medicare card with them, making them a prime target.
• Record theft – Medical records, Social Security records, and other forms of personal documents are a potential goldmine for thieves.
• Online fraud – Fake emails and websites are set up as data traps for unsuspecting consumers.

Identity thieves may drain bank accounts, open new accounts, rack up credit card charges, obtain loans, apply for jobs, refinance their victim's home, obtain medical care, or even commit crimes using stolen personal data. The more serious the crime, the more difficult it is for the victim to recover from identity theft.

The Steps

It is impossible to completely prevent identity theft, but there are some important precautions that can be taken to guard against this crime. Here are some identity theft prevention tips for seniors:

• Do not give out personal information over the phone unless you initiated the call.
• Do not carry your Social Security card or Medicare card in your wallet.
• Research the authenticity of charities and other organizations before you donate money.
• Sign up for the Do Not Call Registry.
• Keep sensitive documents at home in a locked file cabinet.
• Use a cross-cutting shredder to destroy sensitive mail and other documents before throwing them away.
• Opt-out of receiving pre-screened offers based on your credit data.
• Regularly review your financial and credit records for signs of fraud.

If you do become a victim of identity theft despite these precautions, it is crucial that you report the crime immediately. Visit the Credit.com identity theft center for more information about how identity theft occurs, how to spot the signs of fraud, and how to recover from an identity theft crime.