How Social Security Identity Theft Happens and How to Prevent It

Your Social Security Number is a sensitive personal identifier, and if it falls into the wrong hands, it can cause serious consequences.

If identity thieves find your SSN, they can access everything from bank accounts to tax returns to employment records, essentially giving them total control over your finances.

To avoid Social Security identity theft, you need to proactively take steps to keep your personal data safe, both online and in person.

Let’s take a look at how Social Security identity theft happens, how to spot it, and what you can do to prevent it.

Key Takeaways

• Identity thieves use their victims’ Social Security numbers to access their bank accounts, take out new credit cards, or even access their tax information.
• They use techniques like phishing and data breaches to gain access to this information.
• The most common sign of Social Security identity theft is strange credit card transactions and other unusual financial activity.
• If you think you may have been a victim of Social Security identity theft, contact your bank, freeze your credit reports, and contact law enforcement if necessary.

How Does Social Security Identity Theft Happen?

Criminals use a variety of strategies to steal Social Security numbers from their targets. Here are a few of the ways this type of fraud can happen.

Phishing

One of the most common is online phishing scams. In a phishing scam, the criminal poses as a contact or organization that would typically collect Social Security numbers, such as a government agency, bank, or even your employer.

The cybercriminal then exploits that trust to get you to share your Social Security information with them. Many cybercriminals will even build a fake phishing website to encourage you to share your SSN.

Data Breaches

Hackers will often target large organizations that collect Social Security numbers from their customers or clients, stealing this information in a large-scale data breach.

Healthcare, finance, and higher education are all industries that are very vulnerable to data breaches.

Just one data breach can result in extensive identity compromise. For example, a recent data breach at a background check company exposed Social Security numbers for 2.9 billion people.

After Social Security numbers and other pieces of sensitive information are exposed in these data breaches, the data is often shared or sold on the dark web. This means a large data breach could leave hundreds or even thousands of people vulnerable to identity theft at once.

Scams Targeting Vulnerable Populations

Many common identity theft scams target vulnerable populations, such as seniors or disabled people.

These scams are usually a very elaborate form of phishing, and can happen over the phone, via email, or via text message.

Scammers will often pretend to be representatives from the IRS or even pretend to be law enforcement, scaring their targets into exposing their Social Security numbers.

In another common scam, the cybercriminal pretends to be someone in danger, claiming they need access to your bank account to get out of an emergency.

When targeting senior citizens, the scammer often pretends to be the victim’s child, grandchild, or another beloved family member. This creates an extra sense of urgency and panic, which prompts the victim to share their SSN and other bank account information without thinking it through.

In-Person Theft

In-person theft doesn’t happen often these days, as many scammers prefer to use digital tools instead. However, it’s still possible, which is why it’s so important to be careful when sharing Social Security information in public.

Don’t carry your Social Security card around with you in public. If your wallet is stolen, the thief can easily use that information to conduct identity theft.

You should also avoid saying your Social Security number out loud in a public place, or typing it into a computer when someone could be reading over your shoulder.

Signs of Social Security Identity Theft

Social Security identity theft is more common than you might think. In 2021, approximately 9% of the US adult population was a victim of identity theft.

Many victims of identity theft don’t realize what’s happening right away. Watching for suspicious activity can help you address the problem quickly and prevent devastating financial consequences.

The most common sign of Social Security identity theft is unusual financial activity. This could include:

• Credit card or debit card statements with purchases you didn’t make
• Notifications that you’ve opened a new credit card or bank account
• Changes to your credit report that don’t make sense
• Bills from unfamiliar organizations
• Debt collectors contacting you
• Notifications from the IRS or other government agencies out of the blue

If you notice any of these signs of identity theft, it’s important to take action right away to prevent further financial losses.

Luckily, most modern banks have strong practices in place to prevent identity theft. Contact your bank right away – in many cases, they’ll be able to reverse transactions you didn’t make and send you a new credit and debit card.

How to Prevent Social Security Identity Theft

There are several steps you can take to prevent Social Security identity theft and keep your personal data safe.

Protect Your SSN

The first step is to be very cautious with your Social Security number. Do not carry your Social Security card with you, or read your Social Security information out loud in an unsecured public place where someone could overhear you.

If someone asks for your Social Security number, verify that they are who they say they are and that they need your SSN for legitimate reasons first. Keep in mind that providing your SSN isn’t always mandatory. For example, some medical care providers may ask for it, but it isn’t required in most cases.

If you need to share your SSN for a legitimate reason, never do so in an unsecured email or social media message. These unsecured communications could be intercepted by hackers. For example, if a new employer needs your SSN to set up payroll and taxes, provide in person, over the phone, or using an encrypted message.

At the office, work with your IT service provider on a security strategy to ensure you’re keeping Social Security numbers truly secure.

Monitor Your Accounts and Credit Score

Another way to stay safe is to check your bank accounts and credit score on a regular basis. Read your bank statements thoroughly, keeping an eye out for transactions you didn’t make or anything else that looks out of the ordinary. 

You should also request a free credit report periodically to check for abnormal inquiries or fluctuations in your score.

Look for banks that offer some form of identity protection. Many banks will now send you notifications as soon as a suspicious transaction comes through, giving you the opportunity to reverse it right away and take steps to protect your account.

If you do notice anything out of the ordinary, contact your bank and other relevant financial organizations right away to take action.

Freeze Your Credit Reports

If you think your Social Security number may have been stolen, contact the major credit reporting agencies: Experian, Equifax, and Transunion.

All three credit bureaus allow you to set up fraud alerts or even freeze your credit report if necessary.

Putting a fraud alert in place lets potential creditors know that they need to take extra steps to verify your identity before extending a line of credit. This is a helpful step to take if you think your SSN may have been stolen, but you’re not sure yet.

If you have confirmed that your SSN has been stolen, freezing your credit reports will help prevent damage to your credit score while you solve the problem.

All three credit bureaus allow you to freeze your credit online, by phone, or by mail. You will likely need to provide documents to  verify your identity, such as a scan of your Social Security card, driver’s license, or pay stub.

Report The Incident to Authorities

Depending on the severity of the incident, you may need to report it to the authorities. If money was stolen from you, some financial institutions will require you to file a police report as part of the resolution process.

You can also report identity theft to the government by visiting identitytheft.gov. On this website, you’ll provide information about what happened, and the government will create a recovery plan to help you restore your finances. 

In serious cases of identity fraud, taking this step is the easiest way to get back on track.

How Can Parachute Help You?

Parachute is a managed services provider that offers expert cybersecurity and IT support. We’re committed to keeping both your business and your clients safe—which includes preventing identity theft. 

Our team will work with you to create a robust cybersecurity strategy, protecting all sensitive data that could be targeted by identity thieves. We also offer services like system monitoring and 24/7 support to help you address security threats as soon as they happen. 

Give us a call or reach out online today for your free consultation.