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6 Identity Theft Prevention Tips

August 1, 2025 by Nick Magone, CPA, CGMA, CFP®

At Magone & Company, we’ve seen firsthand how devastating identity theft can be for individuals and their families. Your personal and financial information is constantly at risk, facing relentless threats and increasingly sophisticated schemes. The good news? There are many preventive measures you can take to significantly reduce your vulnerability.

Here are some simple strategies that can help keep your identity — and your financial well-being — secure.

Lock down your Social Security number. These nine digits are the crown jewel for identity thieves. Treat your Social Security number with appropriate caution:

  • Provide your SSN only when required for tax documents, credit applications and other legitimate needs
  • Question any request for your SSN, especially via phone or email
  • Never carry your Social Security card in your wallet

Monitor financial statements. The earlier you catch unauthorized activity, the easier it is to address:

  • Review bank and credit card statements weekly
  • Set up account alerts for unusual activities or transactions
  • Reconcile medical bills against insurance statements to catch medical identity theft

Ramp up your digital security measures

The devices in your pocket and home can be either your strongest shield against identify theft or your greatest vulnerability. Digital security is non-negotiable:

  • Install and regularly update security software on all devices
  • Use unique, complex passwords for each financial account and enable two-factor authentication whenever available
  • Avoid conducting financial transactions on public Wi-Fi and use a VPN when accessing sensitive information away from home
  • Review privacy settings on all social media accounts regularly
  • Log out of banking and shopping sites after completing transactions

Protect against direct mail threats

Don’t forget that criminals continue to find easy pickings in unlocked mailboxes and recycling bins. Safeguard against physical threats:

  • Promptly remove mail from your mailbox after delivery, and put a hold on mail delivery when traveling
  • Use a locked mailbox or P.O. box for receiving mail
  • Shred documents containing personal information and be cautious about what you discard in regular trash
  • Opt for paperless statements whenever possible

Secure your medical information

Health records contain some of your most personal details. If criminals gain access, they can exploit your medical benefits and insurance coverage, and corrupt your health records with dangerous misinformation. Be sure to:

  • Keep your health insurance cards secure and report missing cards immediately
  • Review all Explanation of Benefits statements from your health insurance and question any services or treatments you don’t recognize
  • Be cautious about sharing medical information online
  • Like all other sensitive documents, shred medical documents before disposal

Take tax-specific precautions

Your tax return contains virtually every piece of information an identity thief covets — your Social Security number, income details, banking information for direct deposits and more. To help mitigate tax-related identity theft:

  • File your tax returns early, using secure electronic filing methods when possible
  • Know that the IRS will never initiate contact via email, text or social media
  • Use only reputable, certified tax preparation professionals
  • Consider applying for an Identity Protection PIN from the IRS

For more information on securing your personally identifiable information (PII), check out this Homeland Security tipsheet.

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