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Identity Theft vs. Account Compromise: What’s the Difference

Written by First New York’s Michelle Maneri, Contact Center Manager

You’ve probably heard the saying, “You don’t think that you’ll be a victim of fraud until it happens to you.”

I’m Michelle Maneri, the Contact Center Manager at First New York Federal Credit Union (FCU). All too often, I hear horror stories about people who’ve lost their identity or had their bank accounts compromised. Because I keep myself informed on the latest scams and fraud attempts, I understand the dangers of sharing your personal information. I’ve also helped members prevent and navigate these situations in my role.

I’ll walk you through the differences between identity theft and account compromise, so you know what steps you can take to safeguard yourself. We’ll also cover some additional steps that you can use against other types of scams. In this guide, you can do the following:

·      What is identity theft

·      What does it mean if my account has been compromised

·      What’s the difference between identity theft and your accounts being compromised

·      How to protect yourself

Let’s get into the guide on the difference between identity theft and account compromise. If you’re a First New York FCU member, you can always contact the Contact Center to get assistance on identity theft.

What is Identity Theft?

The USAGov defines identity theft as, “Identity (ID) theft happens when someone steals your personal information to commit fraud.” These thieves will try to get their hands on your sensitive information, e.g. social security number, driver’s license, credit or debit card number, Medicare or health insurance information, and private information.

They need this information in order to commit fraudulent acts. These acts include but aren’t limited to the following:

·      Taking out credit cards in your name

·      Filing taxes under your identity

·      Getting a hold of your medical services to file unlawful claims for money

·      Accessing your bank accounts

If your identity is stolen, it could damage your credit as well as cost you a lot of time and money to restore your identity. Now, I’m not trying to scare you. However, identity fraud happens every day and affects millions of Americans every year. So, it’s in your best interest that you learn what it is and how to avoid it, so you can avoid the long process of recovering from identity theft.

 

What does it mean if my Account has been Compromised?

Your account is considered compromised when unauthorized people gain access to your credentials or login information. By having your information, identity thieves can perform actions on your account like closing your bank account or withdrawing money. Your account can be compromised in a few different ways that include the following:

·      Logging into your account on unsecured public Wi-Fi or internet browser

·      Have a weak password that’s easy to figure out

·      Hackers install malware into your device through phishing attacks

Now, that you know what it means to have your identity stolen and your account compromised. We’ll go over the difference and how to protect yourself in the following sections. It’s important to note that there are identity theft protection services and monitoring services available to prevent data breaches. They can also provide you with fraud alerts to ensure you’re notified of any unusual activity that can be used to prevent identity theft ahead of time.

The Difference between Identity Theft and Compromised Accounts

In both cases, identity theft and a compromised account can leave a victim vulnerable. However, the major thing that separates them is that in identity theft your sensitive information is taken to impersonate you. This way criminals can commit fraud.

However, if your account is compromised, a hacker may have your login information that allows them to access your accounts. From there, hackers can only access the accounts they’re able to compromise. For example, if a hacker gets a hold of your bank account credentials, they’ll be able to get into your bank account. However, they may not get into other accounts that contain other sensitive information.

Remember: Identity theft is when someone gains access to your personal information to impersonate you to commit fraud. However, having a compromised account means unauthorized individuals have access to your credentials to your accounts.

How to Protect Yourself from Identity Theft and Having Your Accounts Compromised

While identity theft and compromised accounts by definition differ, there are steps you can take to protect yourself from both instances of theft. I’ll list out the best practices to take in order to ensure you stay protected against criminals. There are also additional scams for elders use this guide to learn how to protect seniors from scams and the five most common elder scams.

Step 1: Never Share Personal Information

Never sharing your personal information is the most important rule for identity theft protection and securing your accounts. Whether you receive a phone call, text, or email, never share your personal or sensitive information with non-trustworthy sources. The best way to avoid being a part of a scam is to think before you act. An identity thief wants to make a situation seem urgent to use your emotions against you.

If you weren’t expecting a call from major organizations like the IRS or a message from a giveaway you never entered, it’s probably a scam. Hang up immediately and talk the situation through with a friend or family member you trust. An even better thing to do with family is to create a keyword with each other to confirm everyone’s identity.

When you take the time to think things through, it makes sense why you shouldn’t cash random checks you receive in the mail or buy strangers gift cards. Thinking about what you’re being asked for through can save you the emotional and financial loss of a scam.

In regards to your bank account, remember First New York FCU will never ask you for personal or sensitive information through unsecured forms of communication. If you have questions on whether you’re a victim of identity theft or have questions about your account, call First New York FCU’s Contact Center immediately.

Step 2: Leave No Trace

Always keep your passwords out of plain sight and try to store them in a secure location that people can’t access. Don’t save passwords to community or communal devices that your friends or family can use.

When it comes to your physical files, make sure that you keep them locked away and out of sight. Also, be sure to shred anything that contains your personal or sensitive information on it. By making sure you keep everything in a secure and safe place, you can ensure that no one can access your sensitive information in and outside of your home.

Step 3: Only Use a Secure VPN or Private Wi-Fi

A VPN is a virtual private network. It’s a service that protects your internet connection, so you can have privacy as you browse online. A VPN is not the same as a firewall. You’ll need to ensure that you turn on your device’s firewall to protect from any viruses you may encounter online.

Private Wi-Fi are encrypted networks that provide wireless broadband connectivity to those who own it. You can buy private Wi-Fi from a cable company or service. It’s different from public Wi-Fi because you pay to use it. This allows you to control who can access your private Wi-Fi.

Step 4: Create Strong Passwords

Strong passwords are the most essential tool to protect yourself from fraud and scammers. We suggest that you create strong passwords by using these criteria:

·      Use a phrase you can remember

·      Make the password long

·      Use numbers and symbols

Also, make sure that you don’t reuse your passwords. A simple way of keeping them in order and organized is by using a password manager. A password manager will store your passwords securely in one place, so you have an additional layer of security.

Step 5: Always Enable Two-Factor Authentication and Notifications

We always recommend that you set up two-factor identification or text/email notifications on your account. This will help alert you when someone other than yourself logged into your account or if your information was changed.

Need Assistance: Contact Us Today!

If you’re a First New York member and need help identifying a scam, contact us today! Our Member Service Specialists are more than happy to assist you, and they’re available Monday-Friday from 7 a.m. until 6 p.m. and on Saturday from 9 a.m. until 1 p.m.