According to Experian, one of the big three credit reporting agencies, online identity theft has gone up by 200 percent over two years ago. One big reason for this increase is simply the sheer number of online accounts that we have anymore. We have social networking accounts, bank accounts, accounts for work; the list is really exploding. In fact, the average American has 26 of these accounts. I don’t know that I do, but I also still have a flip phone.
For these 26 accounts, however, Americans only tend to have five different passwords. Therein lies the problem. If an identity thief gets a hold of just one password, it’s likely he or she can get into several accounts. This happened to my friend Young about a year ago. The thief got into her Hotmail account, which also gave him access to her Facebook. Using the combination of these accounts, he was able to spam her friends – asking them for money because she “got stranded in England.”
If you have online accounts that you don’t use anymore, it’s a good idea to close those accounts. That can help to stop so many of your passwords from being circulated. If you have to keep the accounts, you need to change your passwords regularly. I know it can be a pain to do so, but unfortunately it is a necessary evil. And don’t change your passwords by simply rotating them between your accounts. I know I have been tempted to do that.
Of course, be the most careful with accounts that contain really sensitive information, but note that any account can give a thief what he needs to pretend to be you and to contact anyone you’re connected with through that account. Often, you don’t find out that someone has accessed your online accounts until you are unable to log into them or one of your friends lets you know. An identity theft protection plan can help make things easier. Many plans will notify you if your information is up for sale or being traded on the Web, before any damage is done.
Look into a protection plan today – and get to work changing your passwords. You will be glad you did. I say this as a recent hacking victim. Yep, even the experts get hit sometimes.