Don't Be Spooked: Imposter Scams, ID Theft, and Data Breaches

In today's digital world, it's easy to feel like you're constantly being watched—and in a way, you are. With our personal information scattered across countless online accounts and databases, it's more important than ever to understand the difference between the most common threats: imposter scams, identity theft, and data breaches.

Often, these three things are intertwined, but they aren't the same. Let's break down what each one is and, more importantly, how to protect yourself.

Imposter Scams: The Art of Deception

An imposter scam is a con where a fraudster pretends to be someone you trust. This could be a government official (like from the IRS or Social Security Administration), a representative from your bank, a tech support agent, or even a family member in distress. Their goal is to create a sense of urgency or fear to trick you into giving them money or sensitive personal information.

Red flags of an imposter scam:

• Demands for immediate action: The scammer will insist you must act "right now" to avoid a fine, arrest, or other negative consequence.
• Unusual payment methods: They'll often demand payment via gift cards, wire transfers, cryptocurrency, or payment apps—methods that are difficult to trace.
• Requests for personal information: They might ask you to "verify" your Social Security number, account PINs, or passwords.
• Caller ID spoofing: The number on your caller ID may look legitimate, but scammers can easily fake it.
• Unexpected contact: A real government agency or bank won't call, text, or email you out of the blue to demand personal information or money.

Identity Theft: When Your Information Is Stolen

Identity theft happens when someone uses your personal information—like your name, Social Security number, or bank account details—to commit fraud. This can happen after you've fallen victim to an imposter scam, but it's often the direct result of a data breach. A thief might use your information to open new credit cards, file fraudulent tax returns, or get medical services in your name.

Signs you might be a victim of identity theft:

• Unfamiliar charges on your credit card or bank statements.
• Bills from companies you've never done business with.
• Getting calls from debt collectors for debts you don't owe.
• Changes to your credit report you didn't authorize.
• Getting a notice from the IRS about a tax return you didn't file.

Data Breaches: A Leak in the System

A data breach is a security incident where a company's sensitive data is accessed without authorization. This can happen due to a cyberattack, a stolen laptop, or even human error. When a data breach occurs, it exposes the personal information of a large number of people, which can then be sold on the dark web and used for identity theft.

What to do if you receive a data breach notification:

• Act immediately. Don't assume that because your information was exposed, it's too late.
• Change your password for the compromised account immediately, and for any other accounts where you used the same password.
• Be on high alert for imposter scams that use the information from the breach.
• Take advantage of free credit monitoring if the company offers it.
• Place a fraud alert or credit freeze on your credit reports with all three major bureaus (Equifax, Experian, and TransUnion). This makes it harder for thieves to open new accounts in your name.

Protecting yourself requires a multi-layered approach.

• Be a skeptic: If you receive an unexpected call, text, or email demanding information, don't respond. Instead, contact the company or agency directly using a phone number or website you know is legitimate.
• Strengthen your passwords: Use strong, unique passwords for every account. Consider a password manager to help you keep track.
• Embrace two-factor authentication (2FA): This adds an extra layer of security by requiring a second form of verification (like a code sent to your phone) to log in.
• Monitor your accounts: Regularly check your credit reports, bank statements, and other financial accounts for any suspicious activity. You are entitled to a free credit report from each of the three bureaus once per week at AnnualCreditReport.com.
• Don't overshare: Be mindful of the personal information you post on social media, as scammers can use this to create a more convincing fraud.

The digital world can be a scary place, but you don't have to be a victim. By understanding the common threats and taking proactive steps to secure your personal information, you can reduce your risk and stay one step ahead of the ghouls and goblins of the internet.