Safeguarding Your Identity: What You Need to Know
A person holds a credit card while typing on a laptop, with a digital lock icon displayed on the screen. This visual highlights the importance of safeguarding personal and financial information online to prevent identity theft and fraud.
Identity theft is one of the most damaging crimes in today’s digital world. Each year, millions of Americans discover that their personal and financial information has been stolen and misused—often without warning. The impact can be devastating: drained bank accounts, fraudulent loans, ruined credit scores, and even tax returns filed in your name.
At L&J Public Accounting Services, we know the value of keeping personal information safe. Whether it’s Social Security numbers, tax documents, or banking details, sensitive data is a prime target for criminals. Protecting your identity isn’t just about avoiding inconvenience—it’s about securing your future.
This blog will discuss the most common identity theft risks, habits that may put you in danger, and best practices for reducing your risk.
Understanding Identity Theft
Identity theft occurs when someone steals your personal information—such as your name, Social Security number, or credit card details—and uses it for fraud. Criminals may open accounts, take out loans, or even file false tax returns using your identity.
Identity theft can quickly spiral out of control. One stolen password or lost document may trigger months—or even years—of financial stress and recovery. The best defense is a proactive approach to protecting your information before it’s compromised.
Common Risks to Your Identity
1. Phishing Scams
Phishing is one of the most common ways thieves trick people into giving up personal information. You might receive an email that looks like it’s from your bank, a text pretending to be a delivery service, or even a call claiming to be the IRS. The goal is to get you to click a malicious link or hand over sensitive details.
What to avoid: Never click links or download attachments from unfamiliar sources. Verify requests directly by contacting the company through official channels.
2. Weak or Reused Passwords
Using “password123” or reusing the same password across multiple accounts is like handing thieves the keys to your home. If one account is breached, they can often access many others.
What to avoid: Short, predictable passwords or personal details like birthdays and pet names.
3. Public Wi-Fi Dangers
Free Wi-Fi in coffee shops, airports, or hotels may feel convenient, but it’s also a favorite hunting ground for hackers. They can intercept unencrypted data or even set up fake Wi-Fi networks to steal your credentials.
What to avoid: Logging into bank accounts, tax platforms, or email while on public Wi-Fi without a VPN (Virtual Private Network).
4. Data Breaches
Even if you’re careful, your information may still be compromised through a breach at a major retailer, healthcare provider, or financial institution. Once stolen, your information is often sold on the dark web for years.
What to avoid: Ignoring breach notifications. Constantly update passwords and monitor accounts if you’ve been impacted.
5. Improper Document Disposal
Physical theft still happens. Throwing away old bank statements, tax forms, or credit card offers without shredding them can give criminals exactly what they need.
What to avoid: Tossing sensitive documents in the trash. Always use a cross-cut shredder.
Everyday Habits to Strengthen Your Protection
Use Strong Passwords
Create unique passwords with at least 12 characters, mixing uppercase and lowercase letters, numbers, and special symbols. A password manager can help you keep track without reusing passwords.
Enable Multi-Factor Authentication
When logging in, MFA adds an extra step—like a code sent to your phone. Even if thieves steal your password, they won’t be able to access your account without the second layer of verification.
Stay Alert to Scams
Scammers rely on urgency and fear to get you to act quickly. If you get a message demanding immediate payment or sensitive information, stop and verify it first.
Shred Sensitive Documents
Bank statements, tax records, and receipts should always be shredded before disposal. This prevents dumpster-diving thieves from stealing your identity the old-fashioned way.
Monitor Your Accounts Regularly
Check bank accounts, credit cards, and credit reports for unusual activity. Early detection is key to minimizing damage.
Avoid Oversharing Online
Details like birthdays, addresses, and even your pet’s name can be used to answer security questions or guess passwords. Think twice before posting personal information on social media.
How Identity Theft Can Affect Your Finances
The damage from identity theft can reach far beyond the inconvenience of replacing a credit card. Victims often face:
Delayed tax refunds due to fraudulent filings.
Lower credit scores from unpaid accounts opened in their name.
Difficulty securing loans when fraudulent debt is reported.
High legal and recovery costs to clear their name.
Emotional stress from the constant need to monitor accounts and fight fraudulent activity.
The average victim spends months recovering from identity theft, and in severe cases, it can take years to repair the damage
Business Owners: A Special Risk
Identity theft isn’t just a personal concern if you own a business. Criminals can target your Employer Identification Number (EIN), file false tax returns for your business, or impersonate your company to open fraudulent accounts. Protecting your business identity is just as important as protecting your personal one.
The Bottom Line: Be Proactive
Protecting your identity isn’t about paranoia—it’s about being prepared. You reduce the likelihood of becoming a victim by avoiding common mistakes and adopting strong security habits.
Still, no matter how careful you are, risks remain. That’s why many individuals and businesses add a professional layer of identity protection.
Partnering with Reliashield Through L&J
At L&J Public Accounting Services, we take identity protection seriously. In addition to helping our clients with taxes, bookkeeping, and payroll, we’ve partnered with Reliashield, a trusted name in identity monitoring and recovery.
Reliashield provides:
24/7 monitoring of personal information across credit bureaus, court records, and the dark web.
Real-time alerts for suspicious activity.
Certified specialists will restore your identity if it’s ever compromised.
Up to $1 million in coverage for expenses related to identity theft recovery.
👉 Take control of your identity today. We are a Reliashield Agent. Contact Us Today at 813-685-8700.
Protect My Identity Now with Reliashield
