Dear Liz: I am regularly notified by my identity theft protection service that there has been a data breach somewhere where my data is stored. I don’t know what in the world I’m supposed to do about this. I try to follow all the recommended precautions, but I also wonder: now that all Social Security data is somewhere in the cloud under some mystery person’s control, is it even worth trying to keep up?
Answer: You’ve discovered the oxymoron inherent in an identity theft protection service. Such companies can’t actually protect you from identity theft, and knowing your data has been compromised is of limited value if you can’t actually do anything to prevent its misuse.
Focus instead on what you can do to make yourself less of a target. Start by freezing your credit reports at the three major bureaus: Equifax, Experian and TransUnion. Credit freezes are free and make it hard for identity thieves to open new credit accounts in your name. You can easily and quickly “thaw” your reports temporarily if you need to apply for credit.
You’ll still need to monitor your credit reports for suspicious activity, and you can request free reports from AnnualCreditReport.com. (Type that name directly into your browser. If the site asks for a credit card, you’re in the wrong place.)
Get serious about online security. Create unique passwords and use multi-factor authentication wherever it’s available, but especially on financial, email and social media sites. Consider using a virtual private network to further protect yourself. Erase all personal data from phones and other gadgets before discarding.
Prevent tax refund fraud by getting a free Identity Protection PIN from IRS.gov. You’ll need to use the PIN to file your tax return, but that should prevent someone else from ginning up a false return and claiming a refund using your ID.
Limit the information you share on social media and elsewhere. Keep your birthday, your pets’ names and your children’s names private. Learn how the privacy features work on the sites you use. Look for options to disable location sharing, limit access by strangers and manage which third-party apps can access your account.
Finally: monitor, monitor, monitor. Regularly review every financial account for suspicious transactions and report any you find immediately. Check medical statements and health insurance records for unauthorized activity as well.