Great Financial Wellness Could Include Identity Protection
When it comes to improving your finances, most people immediately think of spending wisely, eliminating debt, and saving for retirement, and rightly so. These all play a major role in financial success.
When it comes to improving your finances, most people immediately think of spending wisely, eliminating debt, and saving for retirement, and rightly so. These all play a major role in financial success. However, one increasingly important part of maintaining financial health is protecting your identity.
The Cost of Being a Victim
Identity theft can derail your financial stability. If a fraudster gains access to your bank account or uses your identity to open fraudulent lines of credit, the consequences can be costly and long-lasting.
- In 2023, identity theft accounted for 1.4 million reports, contributing to a total of $10.2 billion in losses in the United States.¹
- Account takeover fraud caused $15.6 billion in losses in 2023, up from $12.7 billion the year prior.²
- On average, it now takes over 670 days to resolve an identity theft case with the IRS.³
- A significant 87% of victims report emotional distress such as anxiety or frustration, and 16% report suicidal thoughts due to the experience.⁴
The Financial Toll
Let’s say a fraudster damages your credit by opening multiple accounts in your name. If your score drops from 750 to 550, you might pay thousands more in interest on a car loan or mortgage. For example, on a $15,000 auto loan over three years, your monthly payment could increase by $80, and the total interest paid could increase by nearly $3,000 just from a damaged credit score.⁵
What You Can Do
There are several steps you can take to help minimize your risk:
- Check your financial statements regularly for suspicious activity.
- Review your credit reports every four months by staggering free reports from Experian, TransUnion, and Equifax at AnnualCreditReport.com.
- Avoid using public Wi-Fi when entering sensitive information, and shop only on sites that use HTTPS encryption.
- Consider identity theft protection services that offer real-time monitoring and recovery support.
Look for Comprehensive Identity Protection
Top services offer the following:
- Identity Monitoring for personal data exposure.
- Credit Monitoring for changes in credit score or account activity.
- High-Risk Transaction Monitoring such as new account openings or password resets.
- Recovery Assistance from fraud resolution professionals.
Your membership may already include access to tools like credit and identity monitoring, risk assessment, and recovery support. Schedule a session with a Money Coach today to learn more.
Protecting your identity is protecting your financial wellness. Don’t overlook this critical piece of your financial puzzle.
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¹ Federal Trade Commission. Consumer Sentinel Network Data Book 2023. https://www.ftc.gov
² AARP. Javelin Identity Fraud Report 2024. https://www.aarp.org/money/scams-fraud/javelin-identity-theft-report-2024.html
³ Taxpayer Advocate Service. Annual Report to Congress 2024. https://www.taxpayeradvocate.irs.gov
⁴ Identity Theft Resource Center. Consumer Impact Report 2023. https://www.identityiq.com/articles/summary-itrc-consumer-impact-report
⁵ myFICO. Loan Savings Calculator. https://www.myfico.com
My Secure Advantage® does not monitor every transaction at every business. No service can stop all identity theft events. This content is for informational purposes only and does not guarantee eligibility for the program or its services. My Secure Advantage, Inc. or any of its representatives do not endorse any of the websites or company names listed here. The information presented is not to be a substitute for seeking advice specific to your situation from a legal or financial professional. If legal or financial advice is required, contact an attorney or financial advisor.
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