Data breaches are in the news seemingly every few days. With breaches reported at institutions from health insurance giant Anthem to retailers like Target, millions of consumers have had their data compromised.
While consumers can't control what happens in data breaches at big companies, there are many ways they can protect themselves from identity theft on their own. One place to start is with the passwords we use every day to access email, online banking, social media and more.
First, don't use obvious passwords or leave a generic password in place. Research has shown that an alarming number of people use "password," "123456" or other passwords that are easily hacked. Many people use the same password for everything, which means that if one account is hacked, an identity thief could hack into all of your accounts.
Best practice is to use long passwords that contain a combination of numbers and letters - and, if possible, symbols - and to have different passwords for each account. Experts advise against using your birth date or other sensitive information as passwords, as well as avoiding names or common words. Try to use something you can remember but that others won't be able to guess.
Keep track of your credit card and bank accounts, and check them online to make sure there aren't any unexpected transactions. Sometimes identity thieves start with small transactions to test the card or to avoid immediate detection. If you see something suspicious, call your bank or credit card company.
Another thing is to get in the habit of checking your credit report regularly. Consumers are entitled to a free credit report every year from each of the three major reporting agencies: Experian, Transunion and Equifax. The free reports are available from annualcreditreport.com. If you want to stay on top of the reports throughout the year, consider requesting it from one of the agencies every four months rather than from all three at once.
Once you have the report, make sure all the accounts listed on the report are actually yours. Look out for accounts that you don't recognize. Report any discrepancies to the agency that produced the report. If you suspect fraud, you can put a "fraud alert" on your credit report. You may want to consider a credit freeze, but you will have to pay a fee unless you have a letter notifying you that your account was compromised. A freeze prevents anyone from opening new credit accounts.
Yet another good practice is to shred outdated account statements, credit card offers and old ID cards. Using a home shredder is fine, but if you have a large number of documents, you might want to take papers to a commercial shredder or take advantage of a community "shred day" event.
Mike Harrison is Better Business Bureau's Mid-Missouri regional director. You can contact him at [email protected] or by calling 573-886-8965.