If you're concerned about cyber threats, you're not alone. Safeguard your accounts with these critical strategies. Each year, countless Americans experience identity theft and fraud, causing significant disruption to their finances and peace of mind. The Federal Trade Commission (FTC) reported 1.1 million identity theft incidents in 2024, along with around 2.6 million fraud cases leading to losses exceeding $12.7 billion.

Fortunately, there are measures you can take to protect yourself and your assets. Here are our top recommendations to enhance your account security and boost your confidence.

Freeze Your Credit

This advice is worth repeating: freezing your credit is a crucial step. You can easily do this for free online through the three main credit bureaus: Experian, Equifax, and TransUnion, or via phone or mail, explains Ted Rossman, senior industry analyst.

“A credit freeze is effective because it stops criminals from opening new loans or credit accounts in your name. This type of identity theft can be far worse than payment fraud,” Rossman adds.

Identity theft that involves opening a credit card or securing a loan is more complex than unauthorized charges on a credit card, which are usually resolved quickly by card issuers. The potential damage to your credit score can be significant, and resolving these issues can be time-consuming. The only catch? Remember to lift the freeze when you wish to apply for credit again. Keeping your PIN secure is key.

Create Strong, Unique Passwords

We understand that recalling countless strong passwords is virtually impossible. Luckily, with technology, you don’t have to remember them all.

Password managers, like 1Password or NordPass, can save the day. Additionally, many web browsers, including Google Chrome, have built-in secure password managers to help protect your accounts. If it’s been a while since you assessed your account security, now's the time. A staggering 80% of people reuse passwords across sites, according to a recent survey. If one password is compromised, multiple accounts could be at risk.

“Given the number of data breaches, it’s safe to assume our data is exposed,” Rossman notes. “You might overlook your hotel loyalty program password, but if it matches your bank password, that’s a serious issue.”

Utilizing two-factor authentication, if offered, can enhance your security. This method requires a secure code sent to your email or phone before logging into your account. Some accounts may also use biometric access methods like fingerprints.

Stay Vigilant

Regularly reviewing your credit reports and bank statements is essential. While this won’t stop fraud, catching issues early is always beneficial.

Avoid Common Security Pitfalls

Here are some things not to do when trying to secure your finances:

  • Connect to public WiFi
  • Discard sensitive documents without shredding
  • Share your birthday on social media

What’s at Stake?

While unauthorized charges can be bothersome, most credit card companies will resolve them without much long-term impact. However, experiencing identity theft can be far more challenging to address.

“For consumers, fraud stemming from identity theft is a significant, distressing issue,” states a cybersecurity CEO and privacy expert. “It can take months or even years to fully reclaim one’s identity. In some cases, information may be permanently compromised.”

Rossman adds that the “real concern arises when someone uses your identity to open a new financial account.” This can lead to serious consequences, including a negative impact on your credit score.

Stolen identities can be exploited for medical services, fraudulent driver’s licenses, or even tax refund theft. If you face such issues, inform your financial institutions, credit bureaus, and potentially the FTC. Following the straightforward tips above can significantly reduce your risk.