Tips and tricks from the experts; protecting yourself from identity theft

In today’s increasingly digital world, protecting your identity online is more crucial than ever. Cybercrime, particularly identity theft, has become a growing concern in Australia, with online fraudsters and hackers continuously finding new ways to exploit vulnerabilities. 

The team at Specialist Wealth believe that protecting your personal and financial information is not just about security; it’s about safeguarding your future. Here are the essential steps you can take to defend yourself against online identity theft:

Strengthen your passwords

A weak password is one of the easiest ways for cybercriminals to access your online accounts. Here are some simple rules to follow:

• Use complex passwords: a strong password should be at least 12 characters long and include a mix of uppercase and lowercase letters, numbers, and special characters. Avoid using obvious passwords such as "123456" or "password".

• Use a password manager: a password manager can create, store, and autofill your passwords, ensuring that you have unique, complex passwords for every account without the need to memorise them all. These tools encrypt your passwords, offering an added layer of protection.

• Enable two-factor authentication (2FA): wherever possible, enable 2FA. This adds an extra security step, usually in the form of a text message or an authentication app, requiring you to verify your identity before logging in to your accounts.

Monitor your accounts regularly

Checking your financial accounts frequently is a proactive way to detect and prevent identity theft. Keep an eye out for any unusual activity, such as small, unrecognised charges that can be a sign of testing your card before larger fraudulent purchases.

• Set up account alerts: most banks and financial institutions allow you to set up alerts for any suspicious or high-value transactions. These alerts can be sent via email or SMS, allowing you to act immediately if something seems amiss.

• Review your credit report: in Australia, you’re entitled to one free credit report per year from each of the major credit reporting agencies. Regularly reviewing your credit report can help you detect unfamiliar loans or credit applications in your name, a common sign of identity theft.

Beware of phishing scams

Phishing scams are one of the most common methods used by fraudsters to steal personal information. These scams often appear in the form of fake emails, text messages, or websites that impersonate legitimate companies, such as your bank or a well-known online retailer.

• Verify before you click: always double-check the sender’s email address or phone number before clicking on any links or providing personal information. Scammers often create email addresses or URLs that look similar to legitimate ones, but may have slight alterations.

• Be cautious of unexpected requests: if you receive an unexpected message asking for personal details, login credentials, or payments, contact the organisation directly using verified contact information to confirm its authenticity.

Secure your devices

Your mobile phone, computer, and other devices are gateways to your personal information. Keeping them secure is vital for protecting yourself from identity theft.

• Install antivirus and anti-malware software: ensure you have up-to-date antivirus software on all your devices. This will help detect and block malicious software that could steal your information.

• Keep your software updated: software updates often include patches for security vulnerabilities. Regularly updating your operating system and apps ensures you’re protected against the latest threats.

• Use a Virtual Private Network (VPN): a VPN encrypts your internet connection, making it more difficult for hackers to intercept your online activity. This is especially important when using public Wi-Fi networks, which can be easy targets for cybercriminals.

Limit the sharing of personal information

Many people unknowingly share personal information on social media and other platforms, making them prime targets for identity thieves. Review your social media habits and adjust your settings for greater privacy.

• Don’t overshare: avoid posting sensitive information, such as your address, phone number, or details about your upcoming holidays, as this information can be used to impersonate you or gain access to your accounts.

• Use privacy settings: adjust the privacy settings on your social media accounts to limit who can see your posts and personal details. You can often restrict this to friends or contacts only.

• Be selective about what apps you allow access to: many apps request access to your personal information, such as contacts or location. Be wary of granting unnecessary permissions and only download apps from trusted sources.

Be cautious when shopping online

Online shopping has become a part of everyday life, but it’s also an area where identity theft can occur. Protect your payment information and personal details by shopping smartly online.

• Shop on secure websites: before making a purchase, ensure the website’s URL begins with "https://" and look for a padlock icon next to the URL in your browser. This indicates that the site is secure and encrypts your data.

• Use a secure payment method: credit cards and services like PayPal offer greater protection against fraud than debit cards. Consider using a virtual credit card number, if available, for extra security.

• Avoid public Wi-Fi for purchases: never enter your payment details when connected to public Wi-Fi networks, as these are often unsecured and can be easily intercepted by cybercriminals.

Report identity theft immediately

If you suspect you’ve been a victim of identity theft, it’s crucial to act quickly. The faster you respond, the less damage the thief can do to your credit and financial wellbeing.

• Contact your bank and credit card companies: notify them immediately to freeze or close any compromised accounts.

• Report the theft to authorities: in Australia, report identity theft to the Australian Cyber Security Centre (ACSC) or the Australian Competition and Consumer Commission (ACCC). You can also consider contacting IDCARE, a national identity and cyber support service.

Conclusion

Protecting your identity online requires vigilance and proactive measures, but the peace of mind it brings is well worth the effort. At Specialist Wealth, we’re here to help you safeguard your financial future and many of these steps (like credit checks) can be done with our help.

By taking these steps, you can reduce the risk of becoming a victim of online identity theft and ensure your personal information remains secure. Stay safe, stay informed, and protect what matters most.