Identity theft isn’t new, but the ways criminals obtain personal information continue to change.

Today, identity theft can involve everything from stolen credit card information and data breaches to convincing emails, text messages and phone calls designed to look like they came from a bank, government agency or other trusted organization.

Knowing what to watch for — and taking a few preventative steps — can make a significant difference.

How Does Identity Theft Happen?

Identity theft occurs when someone uses your personal or financial information without your permission. That information might be used to make purchases, access an existing account, open new credit or commit another type of fraud.

And it doesn’t happen only online.

Personal information can be stolen from mail, discarded financial documents or a lost wallet. Increasingly, criminals also use phishing emails, text messages and phone calls to convince people to provide information themselves.

A message might appear to come from your bank and claim there’s an urgent problem with your account. A caller may impersonate Medicare, Social Security, a financial institution or even someone you know.

One of the best rules to remember is simple: don’t allow an unexpected call, email or text to rush you into providing personal or financial information.

If you’re concerned that a message may be legitimate, contact the organization independently using a phone number or website you know is correct.

Simple Ways to Protect Yourself

Protect important documents. Keep your Social Security card, financial records, tax documents and other sensitive information in a secure place. Shred documents containing personal information before throwing them away.

Be cautious with links. Rather than clicking a link in an unexpected email or text, access your account through the company’s official website or app.

Use strong, unique passwords. Avoid using the same password for multiple important accounts, and turn on multifactor authentication whenever possible.

Be careful with unexpected callers. Caller ID can be manipulated. If someone unexpectedly asks for sensitive information, hang up and contact the organization directly using a trusted number.

Review your accounts and credit reports. Unfamiliar transactions, accounts or credit inquiries can be early warning signs of identity theft.

Protect your mail. Retrieve mail promptly and avoid leaving sensitive outgoing mail in an unsecured mailbox.

Consider Freezing Your Credit

A credit freeze is one of the strongest tools available for preventing someone from opening a new credit account in your name.

Credit freezes are free, don’t affect your credit score and can be temporarily lifted when you legitimately need someone to access your credit.

To fully freeze your credit, you’ll need to contact each of the three major credit bureaus: Equifax, Experian and TransUnion.

A Special Concern for Older Homeowners

Older Americans can be particularly attractive targets for financial scams because they may have retirement savings, investments and significant equity in their homes.

That makes caution especially important when considering financial products involving your home, including a reverse mortgage.

A legitimate reverse mortgage should never require you to send money to an unknown individual, purchase an unrelated financial product or provide sensitive information because of an unsolicited phone call, email or text.

Be wary of anyone who contacts you unexpectedly and pressures you to act immediately, promises access to “free money,” claims you must use a particular contractor or financial professional, or asks you to sign documents you don’t fully understand.

For a federally insured reverse mortgage (Home Equity Conversion Mortgage HECM), homeowners are also required to complete counseling with an independent HUD-approved housing counselor before the loan can proceed. That counseling provides another opportunity to ask questions and make sure you understand the loan before making a decision.

If you’re considering a reverse mortgage, take your time, ask questions and work with professionals you trust. You should never feel pressured into making a decision involving your home.

What If I Think My Identity Has Been Stolen?

If you notice a transaction, account or credit inquiry you don’t recognize, act quickly. Contact the financial institution involved, change passwords on affected accounts and consider placing a credit freeze or fraud alert on your credit files.

The Federal Trade Commission’s IdentityTheft.gov website allows consumers to report identity theft and receive a personalized recovery plan.

Identity thieves often depend on getting people to act before they have time to think. Protecting your information, questioning unexpected communications and regularly reviewing your financial accounts can go a long way toward keeping your identity — and your finances — secure.

Jan and Kelsey are Reverse Mortgage Specialists serving the Erie, Dacono, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan and Kelsey to learn if a reverse mortgage is right for you.