Cheap but Effective: Here Are 10 Budget-Friendly Identity Theft Protection Tips to Keep in Mind in 2024

As our world becomes more digitized, the threat of identity theft grows. Fortunately, there are steps you can take to avoid becoming the victim of an identity thief. Although there are plenty of companies willing to help you protect your identity for an average price of $10 to $30 per month, here are 10 steps you can take that are both effective and absolutely free.

1. Monitor your accounts

It takes mere minutes to review your bank statements, credit card transactions, and investment accounts. Poor a cup of coffee or your favorite beverage, log in to your account and make sure you recognize each transaction.

Tip: Identity thieves often charge a very small amount to your bank account or credit card. What they hope is that you won't notice. If they get away with that, they ratchet up the amount they steal. Even if the unfamiliar transaction you see is quite small, report it to the bank or credit card company's fraud department.

2. Be greedy with personal information

All an identity thief needs to pretend they're you and run up bills in your name is your personal information. Never provide anyone you don't know with details like your birthdate and Social Security number. Once the bad actors have your name, address, Social Security number, and birthday, pretending to be you becomes infinitely easier. Do not make it easy for them.

3. Be suspicious of phishing attempts

Phishing is the act of literally fishing for personal information. ID thieves need enough of your personal information to take over your identity. Any time you receive an email, text, or call from a person or institution you're not intimately familiar with, it's safe to assume they're looking for something you don't want to share. Don't click links in messages and don't provide personal information. If you want to verify the legitimacy of the sender, it's as easy as contacting the company directly through their official channels.

4. Make your password stronger

Undoubtedly, creating a strong, unique password for each and every one of your accounts is a pain in the derriere. However, doing so makes it harder than sin for a thief to get into all your important accounts. And don't forget to change those passwords on a regular basis.

5. Enable two-factor authentication

Are you ever annoyed when you type in your password only to receive a notice that the website requires two-factor authentication? Don't be. If you choose to have that verification code texted to your phone or sent to your personal email account, it provides a nice level of protection.

6. Take advantage of free credit monitoring services

As mentioned, there are companies that provide a monitoring service for a fee. However, some financial institutions and third-party service providers offer monitoring for free. Their mission is to notify you if there are significant changes to your credit report. These notifications allow you to act quickly to investigate suspicious activity. See if your bank or credit card issuer offers free credit monitoring for customers.

7. "Santa Claus" your credit reports

At least once a year, order a copy of your credit reports from Equifax, Experian, and TransUnion. Like Santa, check each list and then check it twice. If you see a debt that's not yours or a change of address you did not requisition, report it as suspicious activity to the credit reporting agency in question. In fact, report anything that looks suspicious.

8. Secure your devices

Installing antivirus software from a company you know and trust serves as one layer of protection. The next level involves securing your home wifi network with a strong enough password to avoid unauthorized access. Taking these steps can help keep your data safe.

9. Take action

If you suspect that your credit report has been accessed, consider placing a fraud alert or freeze on the account. Once your account is frozen, it's next to impossible for an identity thief to open a new account by pretending to be you. Note that you'll need to unfreeze your credit to apply for a new loan or credit card.

10. Give family and friends the side-eye

Ideally, no one you know would ever take advantage of you. But be careful about who you share private information with and who you allow to have access to your financial documents.

Finally, if you ever have reason to believe that any of your accounts have been compromised, take action immediately. Contact your bank, credit card company, or brokerage firm. Report the incident to the Federal Trade Commission (FTC), and don't forget to file a report with your local police department. Not to put too fine a point on it, but your credit and personal finances are at stake.