Tag Archives: Preventing Identity Theft

Are Passkeys the New Passwords? What to Know

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For years, passwords have been the standard way to protect online accounts. However, remembering dozens of unique passwords can be difficult – and weak or reused passwords can create opportunities for identity theft.

That’s where passkeys come in. They’re becoming a more common way to sign into websites and apps without typing a traditional password, and they’re designed to make logging in easier and more secure.

If you’ve recently seen an option to “create a passkey,” here’s what it means and what you should know before making the switch.

What is a Passkey?

A passkey is a digital credential that lets you sign into an account without entering a traditional password. Instead, you typically verify your identity using the same method you use to unlock your device, such as:

  • A fingerprint
  • Facial recognition
  • A device PIN or passcode

Behind the scenes, a passkey uses cryptography to verify that you’re authorized to access your account. Rather than relying on something you need to remember and type, it lets your device securely confirm your identity.

How are Passkeys Different from Passwords?

A password is a word, phrase, or combination of characters that you create and enter when signing in. The website or app checks that it matches the credentials linked to your account.

A passkey works differently. Creating one generates a pair of cryptographic keys. One key is associated with the website or app, while the private key stays protected on your device or in your password manager. When you sign in, the keys work together to verify your identity without sending your private credentials to the website.

When prompted to sign in with a passkey, it’s usually a quick tap on a button or a text prompt to use your Face ID, fingerprint, or device PIN to access your account.

Why Can Passkeys be More Secure?

Passkeys can reduce several risks commonly associated with passwords.

They’re resistant to phishing. Each passkey is linked to the legitimate website or app where it was created, so it generally won’t authenticate if a scammer directs you to a fake login page.

There’s no password to reuse. Reusing the same password across multiple accounts can put them all at risk if one company has a data breach. Each passkey is tied to a specific account.

There’s nothing to type, so you can’t accidentally enter your passkey on a phishing site, jot it down on a sticky note, or send it to someone asking for your login credentials.

Passkeys can also help protect against password guessing, credential stuffing, and other attacks that rely on stolen passwords.

What Should You Know Before Switching?

Passkeys offer strong security benefits, and a few key details are worth knowing as you get started.

Not all websites support passkeys yet. Passwords remain widely used, and some sites and apps may not offer passkeys as an option.

Your experience may vary depending on your device. Passkeys often sync across devices that use the same operating system or password manager. Switching between devices or technology ecosystems may require extra steps.

Account recovery still matters. Losing a phone or computer doesn’t always mean losing access to your accounts. Many passkeys can be restored through your device’s account or password manager, so keep your recovery information up to date and protect the accounts that control access to your devices and stored passkeys.

You may still encounter other security checks. Some services may still require additional authentication in certain situations.

Can Passkeys Help Protect Your Identity?

They can help reduce several common paths that criminals use to take over online accounts.

Stolen passwords can expose email, banking, shopping, and other valuable personal information. Because passkeys don’t rely on a reusable password, they can make it harder for criminals to use phishing or stolen databases to access your accounts.

The Identity Theft Resource Center describes passkeys as an important tool for reducing identity crimes tied to stolen passwords. Still, passkeys are just one part of protecting your identity, not a replacement for every security habit.

Should You Use a Passkey When One is Offered?

For many people, setting up a passkey on a trusted website or app is convenient and offers stronger protection than using only a traditional password. Before creating one, confirm that you’re using the legitimate website or official app, and know where your device stores and manages passkeys.

If a website doesn’t support passkeys, continue following strong password practices. That means using a unique password for each account, avoiding easily guessed passwords, and enabling multifactor authentication when available.

Keep Your Digital Security Strong

The way we protect online accounts is changing, and passkeys may eventually become a much more common alternative to passwords. Whether you use passkeys, passwords, or a combination of both – good digital security habits still matter.

Protect your devices with a strong PIN or passcode, keep your software updated, be cautious about unexpected login requests, and never approve a sign-in you didn’t initiate.

A few extra security measures can make it much harder for criminals to gain access to your accounts and personal information. For more tips like these, visit the Preventing Identity Theft section of our First Scoop Blog.

Credit Freeze vs. Credit Lock: What’s the Difference?

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A credit freeze and a credit lock can both make it harder for an identity thief to open a new account in your name. Although the terms sound similar – they differ in cost, legal protection, and how they are managed.

Understanding the differences can help you choose the right safeguard, especially after a data breach, identity theft warning, or suspicious activity on your credit report.

What is a Credit Freeze?

A credit freeze (also called a security freeze), restricts most access to your credit report. Since lenders commonly review a credit report before approving a new loan, a freeze can help stop someone from opening an account or applying for a loan using your identity.

Federal law gives consumers the right to place and lift a credit freeze for free. A freeze does not affect your credit score and stays in place until you remove it or temporarily lift it.

Key things to know about a credit freeze:

  • You must place it separately with each credit bureau – Equifax, Experian, and TransUnion.
  • It will block legitimate credit applications as well as fraudulent ones.
  • You can temporarily lift it when you need to apply for credit.
  • It does not close existing accounts or stop fraud on an account that is already open.
  • Parents and guardians can request a freeze for an eligible minor child.

What is a Credit Lock?

A credit lock also restricts access to a credit report, but it is a service offered by a credit bureau rather than a consumer right guaranteed under federal law. You will generally manage a lock through the bureau’s website or mobile app.

Some lock services are free, while others are included in paid identity monitoring packages. Features and costs vary, so you’ll want to review which credit reports the service covers, what alerts it includes, and what happens when you cancel.

Credit Freeze vs. Credit Lock at a Glance

Credit Freeze

  • Free to place, lift, or remove.
  • Protected by federal law.
  • Managed separately with each credit bureau.
  • Remains active until you lift or remove it.

Credit Lock

  • Cost depends on the provider.
  • Administered by the provider’s service terms.
  • Usually controlled through an app or online account.
  • May include monitoring, alerts, or other identity protection features.

Both tools can restrict access used to process new credit applications, and neither one replaces regular account and credit report monitoring.

Which Option is Right for You?

A credit freeze may make sense when you want a free option established by law, do not plan to apply for new credit soon, or believe your personal information has been exposed. It may also be useful as a preventive measure even when you have not experienced identity theft.

A credit lock may appeal to someone who wants app-based controls and values additional alerts or monitoring services. Compare the cost and coverage carefully. A paid lock is not necessarily more effective at restricting access than a free credit freeze.

What Happens When You Apply for Credit?

Before applying for a loan, credit card, or another account, you will generally need to lift the freeze or unlock the applicable credit report. After the credit review is complete, confirm that your freeze or lock is active again.

How is a Fraud Alert Different?

A fraud alert does not block access to your credit report. Instead, it tells businesses to take additional steps to verify your identity before opening an account. You only need to contact one of the three credit bureaus to place an initial fraud alert, and that bureau must notify the other two.

A fraud alert can be useful when you suspect identity theft, but still expect lenders to access your credit report. It does not offer the same access restriction as a freeze or lock.

Continue Monitoring Your Information

A freeze or lock focuses mainly on new account/loan application fraud. Continue reviewing your current bank and credit card accounts, checking your credit report, using strong passwords, and investigating unfamiliar activity.

Review our identity theft protection guide and explore our fraud prevention and identity theft resources for more ways to protect your personal and financial information. You can also visit the Preventing Identity Theft section of our First Scoop blog. If you notice suspicious activity involving one of your First Financial accounts, call 732-312-1500 or visit your local branch.

Article Sources: Federal Trade Commission | Consumer Financial Protection Bureau

Signs You’ve Been a Victim of Identity Theft

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In today’s digital world, where personal information is frequently shared online, the threat of identity theft looms large. First Financial is committed to helping you recognize the warning signs of identity theft and take appropriate action. Understanding these signs is crucial for protecting your financial well-being and ensuring peace of mind.

Spotting the Warning Signs

Recognizing identity theft requires vigilance and an understanding of several key indicators. Unrecognized transactions on your bank or credit card statements are often the first hint of identity theft. These transactions might be small at first, but they can quickly escalate. Equally important is keeping an eye on your credit report for any inquiries that you don’t recall initiating. This could indicate someone attempting to open accounts in your name. You can check your credit report for free once a year at annualcreditreport.com.

Another sign to be wary of is receiving unfamiliar bills or statements, or conversely – not receiving the bills or statements you are expecting. This can suggest that someone has gained access to your account information and is redirecting your mail. A sudden, unexplained drop in your credit score is another red flag. It can indicate that fraudulent activities are negatively impacting your credit history.

Unexpected denials of credit or loan applications can also signal identity theft. If your applications are being denied and you don’t know why it could be due to a compromised credit history. Additionally, receiving calls from debt collectors about debt that you don’t recognize is a classic symptom of identity theft. Lastly, unusual activity on your Social Security account – such as unfamiliar earnings reports, should also raise concern.

Confirming and Responding to Identity Theft

If you suspect you’ve been a victim of identity theft, there are several steps you should take to confirm and address the issue. Begin by thoroughly reviewing all of your financial statements and accounts for any unauthorized transactions. This includes checking your credit report from the major bureaus for any unfamiliar activities or discrepancies.

If you find evidence of identity theft, it’s important to report it immediately. Contact your financial institution, credit card companies, and the credit bureaus to inform them of the suspected theft. You should also file a report with the Federal Trade Commission (FTC), which will provide you with a recovery plan.

Taking preventative measures like placing a fraud alert or a credit freeze on your accounts can help prevent further damage. This restricts access to your credit report, making it more difficult for identity thieves to open new accounts in your name. Finally, updating the security of your accounts – such as changing passwords and PINs, is crucial in safeguarding your financial information.

At First Financial, we understand the importance of protecting your personal and financial information. Being aware of the signs of identity theft and knowing how to effectively respond is essential in safeguarding yourself against these risks. By recognizing the signs early and taking prompt action, you can significantly mitigate the effects of identity theft. Stay informed and protected, talk to a representative at 732.312.1500 or visit any of our branches today.

How to Spot Identity Theft and Ways it Can be Used Against You

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ID theft is unfortunately very commonplace today, and sometimes it can be unavoidable. Keep reading to find out a few ways you can safeguard your personal and financial information, how to spot if identity theft might be happening to you, and ways that having your identity stolen can be used against you.

3 Main Signs Your Identity Has Been Stolen:

  • There are accounts you don’t recognize on your credit report.
  • There are unfamiliar transactions on your credit card or bank statements.
  • The IRS informs you that more than one tax return has come in under your name.

Ways ID Theft Can Be Used Against You:

  • The identity thief may use your information to get credit, a loan, or another service in your name. This will ultimately affect your credit score, and potentially your credit usage and how much you’ll be approved for – if not spotted in time.
  • Your own money could be stolen right out of your bank account. If the identity thief uses your personal information to login to your bank accounts, your money could be stolen right out from under you.
  • Your tax refund could get stolen. If you go to file your taxes and are notified by the IRS that they already have a return filed under you, this is a very good indicator that an identity thief has already gained access to your tax refund.
  • Your Social Security Number could be used to work at a job you don’t actually have. An identity thief who has access to your SSN may use it for their own employment purposes. This could also directly affect your tax return, as it would add extra income you will be taxed on.
  • Your health insurance could be used to provide medical care or prescriptions to an identity thief.
  • Your personal and financial information could be used to file a false unemployment claim. This would mean unemployment benefits are being issued in your name to someone else.

There are a few things you can put in place to spot ID theft right away, and to help thwart it off:

  • Be sure you are reviewing an annual free credit report. At least once a year, go to annualcreditreport.com and review your credit report for accounts you didn’t open yourself, or to see if there were any credit inquiries that are not yours. You’ll want to check for credit cards you didn’t open, and car or personal loans you did not apply for. Utility services will also appear on your credit report, so you’ll also want to make sure you actually have the ones listed on it.
  • Check your bank statements often. At least once a month, review your bank and credit card statements to check for accuracy. Be sure the purchases listed were ones made by you. If not, call your financial institution to dispute any incorrect charges right away.
  • Sign up for email or text alerts. Most banks and credit cards offer purchase alerts that you can setup for your accounts. Check your mobile app or online banking settings to see what your alert options are. Here at First Financial, our members have access to First Financial Wallet. If you haven’t already, get started today!
  • Review your health insurance statements. Take note of any medical bills or explanation of benefits statements that arrive in the mail. If you don’t recognize a medical procedure or expense listed, call your health insurance provider immediately.

For more ways to protect your identity, check out our identity theft prevention guide.

Article Source: consumer.ftc.gov

Ways to Protect Your Credit Cards

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If you’ve ever been a victim of identity theft, you know it’s awful. Between the time it takes to get everything corrected and the stress it causes – it’s definitely a spot you’d like to avoid if you can. Though nothing is fool proof, there are several ways in which you can protect your finances. Here are a few that pertain to keeping your credit card information safe from fraud.

Secure all your cards: If your wallet is ever stolen and you lost every card, think about what a nightmare it would be to have to cancel and replace them all. Really consider this the next time you leave home. Try to only take the cards you absolutely need and keep the rest in a secure location like a safe or locked drawer. Try to also minimize the amount of cash you have on you as well and only bring what you need. This way if your wallet gets lost or stolen, you aren’t literally losing everything.

Pay attention: It might be difficult to keep track of a criminal’s activities in real-time, but you can check on your accounts regularly. Today’s smartphone banking and credit card apps really make it easy and fast to check on all your accounts and look for fraudulent transactions. If you’re keeping track of your spending and looking at your accounts daily, you’ll know the minute something happens that looks out of the ordinary. Checking on your accounts every day also helps you monitor your monthly budget and spending habits too.

Opt for being more high-tech: Have you ever used your smartphone’s digital wallet? Many retailers are set up to take payments via Apple Pay and Google Pay, and it’s very easy to use. EMV chips in your credit and debit cards also make transactions more secure and prevent card skimming as well. When shopping online, if PayPal or your phone’s digital wallet are options for payment over entering your card number – always go that route.

Using the above tips can help protect your financial information and really save you from an identity theft headache. Also be weary when using an ATM or paying for gas at the pump – be sure to check for any skimming devices before inserting your card. If something seems off to you, it probably is. Read about how to spot a skimming device in our guidebook here.

T.H.I.N.K First because There’s Harm In Not Knowing!

Article Source: John Pettit for CUInsight.com

5 Steps to Protect Yourself from Identity Theft

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According to a survey done by Bankrate.com, 41 million Americans have been victims of identity theft. Most Americans aren’t taking the necessary steps to protect themselves until it’s too late. For those unfortunate enough to have had firsthand experience, it’s a scary experience that can take years to fix. And in the process, your finances can get destroyed. Before this happens to you, it’s important to take the steps to safeguard yourself from identity theft. Here’s what you should do:

Closely Monitor Your Bank Statements

Most people hardly ever check their credit card or bank statements. If your account information is compromised, you might not even know about it until it’s too late. Be proactive – it’s best to check your statement monthly. You should also make it a habit to log into your accounts at least once a week to review the transactions and see if anything looks off. The earlier you catch any unauthorized transactions, the easier it will be for you to dispute the discrepancies with your financial institution.

Check Your Credit Report Yearly

You are legally entitled to a free credit report every year from each of the three major credit bureaus, TransUnion, Experian, and Equifax. Take advantage of this. Your credit report can change often so it’s important you know what’s going on, especially if you plan on making a large purchase or taking out a significant loan in the near future. AnnualCreditReport.com is a good place to get started. There are many other websites that offer free credit reports, but they may charge you fees after a period of time so be sure to always read the fine print.

Strengthen Your Passwords

We share so much on the internet. Most of us are on at least one social network, if not more. We also depend on the internet to do much of our shopping and banking. While it’s a great convenience, it’s also dangerous as well. Many hackers prey on unsuspecting internet users and shoppers. Before you post something on a social profile, be careful what you share – especially if it contains any personal information. Also, use strong passwords containing a mix of capital and lowercase letters, numbers and symbols. You should also periodically change your passwords as well, especially for sensitive accounts such as your email and bank account.

Secure Sensitive Documents

Paper trails can be just as dangerous as digital ones. Keep your sensitive documents in a safe place in your home, ideally in a locked cabinet or safe. If you need to get rid of any documents with sensitive information on it, be sure to shred them beforehand to prevent them from getting into the wrong hands.

Don’t Give Out Personal Information

If something sounds fishy or phishy, it probably is. Don’t fall victim to a phishing scam. If you receive any requests for personal information such as your social security number, don’t give it out – even if it comes from a company you recognize. Scammers disguise themselves as something or someone else all the time. Call the company and speak to a representative first before you give out any information.

The most important thing to remember is to be proactive and vigilant. Identity theft is a real concern but with the right steps, you can prevent it from happening to you.

Article Source: Connie Mei for moneyning.com