Modern Identity Theft: What You Need to Know to Stay Safe

In this episode of ⁠The Herbein Conversation's Fraud Fighters⁠ series, host Debbi Fetter, Partner and Managing Director, flips the script with guest interviewer Hannah Kubik, to tackle one of the most persistent and evolving threats facing individuals and businesses alike: identity theft.

From financial fraud to voice verification scams using AI, Debbi breaks down the many forms identity theft can take and shares practical steps to protect your personal and professional information.

You’ll learn:

• How to categorize and protect different types of personal data
• What to do if you suspect your identity has been stolen
• Red flags to watch for with voice verification fraud
• Preventative security measures that actually work

Listen now and fill your fraud prevention toolbox: 

Debbi S. Fetter: Hello everyone and welcome to another episode of the Herbein Conversation Podcast where we dive into some of the most pressing issues in the modern workplace.

I'm Debbi Fetter, Partner and Managing Director of our firm's Risk Management practice and the host of Fraud Fighters Podcast series -your go-to podcast for the latest in fraud and cybersecurity tips and trends.

Today, we're shaking things up a bit. We're diving into the fraud mailbox to answer some of your most pressing questions about identity theft, and instead of me asking the questions, my colleague Hannah Kubik, who is one of our marketing gurus behind the Fraud Fighters Podcast series, will be asking me the questions today. Hannah, welcome to the podcast.

Hannah Kubik: Thanks Debbi. I'm excited to shed some light on identity theft. There's been an uptick over the last several years, leaving people wondering how it happens and what they can do to protect themselves.

So Debbi, let's get started with the big picture question from our listeners.

What are the different types of identity theft and how do they happen?

Debbi S. Fetter: Absolutely. ID theft can take many forms, and the fraudsters keep evolving their trade, but at the basic level, identity theft comes in several avenues.

• First, tax identity theft. At this time of year (or we're just past it), criminals file fraudulent tax returns in your name or use Social Security numbers to claim refunds. You may become aware of this when the IRS rejects your legitimate return.
• Medical identity theft: Fraudsters use your identity to obtain medical services or prescription drugs.
• Voice verification fraud: Scammers use AI to mimic your voice and bypass security measures on accounts that use voice authentication.
• And the most common type - financial identity theft. This when someone uses your personal information and financial information for their own financial gain to hack into your bank account, open new accounts in your name or make unauthorized purchases. Because most examples of ID theft involve financial gain, it's extremely important to safeguard your personal information and be leery of communications from your bank or financial provider requesting that type of information.

Hannah Kubik: Thank you for that overview. Could you expand on the types of personal information fraudsters use?

Debbi S. Fetter: Absolutely. It's important to understand that not all personal information is created equally. Some information is more readily available or common place via public sources, has a lower risk, and doesn't need as much protection.

Personal information can be broken down into what I would call 3 basic categories.

• Low risk: Your name, address, phone number. Those things are easily obtained in public resources so it's not as critical to protect them.
• Medium risk: Your birthday, place of birth, your mother's maiden name. It can still be obtained publicly, but not as readily. For this type of info don't over share on social media. No sense making the information readily obtainable. Make the fraudsters work to commit the crime.
  
  • Don't solely use these pieces of information as to secure or login to an account.
  • Avoid using this information as challenge questions. I know a lot of times banks may say what's your mother's maiden name as one of the options. I'd bypass that.

• Make sure you're looking for the lock icon at the top of your web browser, which encrypts your data.
• Use strong, complex passwords. Things with upper and lower case. Symbols, numbers and letters.
• Use protected Wi-Fi options - don’t just use those free guest options.
• And don't carry that type of information in your wallet or purse in the event that it's stolen.
• Place a fraud alert on your credit report as a pre-emptive measure, not just when you think you're a victim of fraud. This requires you to log into the credit bureau websites separately, so TransUnion, Equifax, Experian, and place the alert. Any third parties trying to run your credit report a bank, for instance, when starting a loan or a credit card application, will be stopped and asked to contact you to release the alert on a temporary basis before that credit report can be run. It can make enacting ID theft on your accounts all that much harder to commit. I know I for a fact use this technique.

Hannah Kubik: Lots of great nuggets of information there, especially about, you know, not keeping your passwords and such in your wallet, which you know I will say I have done in the past, but I've since stopped doing that. So, here's another question that we get asked a lot - What should someone do if they realize they're a victim of identity theft, especially in regards to their banking?

Debbi S. Fetter: First, act quickly. If you wait too long, the damage can be done, and it just keeps compounding. Some common steps that I do are…

• Contact your bank immediately. Freeze your accounts, dispute the fraud charges, or even just walk into your branch that you're familiar with and ask your bank for assistance.
• Place a fraud alert or credit freeze on your credit report. Notify the major credit reporting agencies - Experian, Equifax and Trans Union - at their websites. You have to do each one of those separately and individually.
• Report the ID theft. File a report with the Federal Trade Commission or the FTC at identitytheft.gov, or possibly your local police.
• And then monitor your accounts. Check your account statements, check your credit reports for unusual activity. Set up online banking alerts to notify you in real time using your bank app or even your mobile app. Use apps like Credit Karma to monitor your credit reports and make changes real time.
• And then last but not least, update your security measures. Change your passwords frequently and enable multi factor authentication. I know it's a pain, but it actually helps in the long run.

Hannah Kubik: Absolutely. And I will say that I recently did a credit freeze because one of my friends was a victim of financial identity theft and it was very easy to do and I'm already feeling more secure.

One of the newer concerns we're seeing is voice verification fraud. How does this type of fraud work and what can people do to protect themselves?

Debbi S. Fetter: Advances in technology help and hinder absolutely. Voice verification fraud is when scammers use AI generated voice clones to bypass security checks that rely on voice authentication. You can try to stay protected by…

• Avoiding using voice authentication when possible. Opt for multi factor authentication instead. It may be a pain to get a code or a call to your phone or your e-mail, but it does deter fraudsters. Those added steps add extra security.
• Use a code phrase. Some banks allow you to set up a specific phrase for verification. Make sure this isn't something easily identifiable by your social media posts. If you post a lot about your pets, you can bet a fraudster is going to try to use that information to guess your phrases.
• Be leery of unexpected calls. If someone claims to be from your bank and asks you to verify yourself with your voice, hang up call the bank back directly.
• Use common sense. If you weren't expecting the call, don't give the information. Call back and call back on the banks dedicated line from a third-party source. That's something that you receive in a text message or a voicemail.

Hannah Kubik: It is, you know, amazing what AI is capable of doing these days. And after hearing what you just said, I will certainly continue to rely on multi factor authentication for my online banking access vs voice verification.

One final question is an important one. You've given us a lot of good tips. Can you summarize some of the security measures people can put in place to prevent identity theft?

Debbi S. Fetter: I can certainly try. And with mindfulness and some of these key steps, we can better protect ourselves from identity theft. I'd say to start with…

• Use strong passwords and don't reuse them across multiple accounts or with phrases that are easily guessed based on your social media posts. Don't use your pet names.
• Enable multifactor authentication. This adds extra layers of security. Get that extra code texted to your phone. It helps.
• Be cautious with personal information. Avoid oversharing details like your birthdate, your pets, your kids names, your Social Security number online.
• Shred sensitive data and documents. Prevent dumpster diving fraudsters. Use blackout pens on sensitive data.
• Monitor your credit reports is a big one. Check regularly for suspicious activity.
  Put a preemptive fraud alert on your accounts. Any legitimate bank will run a credit report during that new account process, so that fraud alert on your credit report will stop the process and won't get that new loan out to the fraudster.
• Watch for phishing or vishing scams. Don't click on suspicious links or share personal information over the phone or via text, especially when you get a text message asking you to do something. A majority of banking institutions, if not all of them, will never ask you to verify something and fulfill a request via text. If you do receive a text message asking to do something, get the customer support number for the business and ask them over the phone if they do in fact have a request for you. If they don't, block the sender, report the number that contact you and you're a little bit safer in the future.

Hannah Kubik: Thank you for wrapping that up so succinctly. This has been an incredibly helpful discussion. Any final thoughts for our listeners?

Debbi S. Fetter: I always have final thoughts, but trust your gut. Identity theft can happen to anyone, but staying informed and proactive can greatly reduce your risk. If something feels off, trust your instincts, instincts and act quickly.

Hannah Kubik: Well said and thank you again Debbi for sharing these insights. That's all for today's episode of Fraud Fighters. I'm going to turn it back to you for the closing remarks.

Debbi S. Fetter: And thank you, Hannah, for being with us today. We hope we've given you some beneficial tools for your fraud toolboxes. If you'd like further tips for how to protect your identity from falling in the wrong hands, assess potential gaps in your fraud IT or internal control programs, or just want to talk through some of your fraud
concerns, please reach out to any member of our Risk Management team.

If you enjoyed this episode, I'd like to encourage our audience to listen to our fraud Fighter series, which is available on our website, Herbein.com, Spotify and Apple podcasts.

Stay tuned for future topics where we dive deeper into fraud across industries, areas and what's new and hot in today's world.

Thank you again for tuning in and remember, keep up the fight and see you next time Fraud fighters.