Expert Tips To Avoid Identity Theft
How to lower your risk from identity theft when you share personal information.


Sandra Block
For expert advice on identity theft risks, Kiplinger interviewed Raj Ananthanpillai, founder and CEO of Trua, an identity verification and screening company. He has over 30 years of experience as a tech entrepreneur, and one of his companies helped develop TSA-Precheck for air traveler security.
Why is this a golden age of identity theft?
Everybody is giving away their Social Security number, date of birth or where they live, whether it’s to sign up for a gym membership or for discounts on groceries, because they think they’re getting something of value. But these companies are collecting your personal information. Not only does that put you at risk if the data is hacked, but companies may turn around and sell it to third parties. Some of this information is then stolen and bartered on the “dark web” — where users and website operators are anonymous and untraceable.
Companies are supposed to get your consent before sharing your information with third parties, but it’s on 13 to 15 pages of fine print that 99% of people can’t understand, so they agree to the terms.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What should you do if a company asks for your Social Security number?
It depends on the company.
Social Security numbers were created to record wages and earnings for the IRS and to determine eligibility for government benefits. Somewhere along the line, people started using them to establish an individual’s identity, and it has proliferated.
If the entity asking for your Social Security number isn’t a financial institution, government agency or employer, you should ask why they need it, what they are going to do with it, how long they’re going to store it and whether they share it with any third parties. If they’re using your Social Security number for identity verification only, you should ask whether there’s another way to establish your identity.
Is it risky to give a company your cell phone number?
Yes, because it may be used to commit fraud.
These days, cell phone numbers are being used as a piece of verification data to prevent fraud in digital transactions. In addition, as online vendors collect cell phone numbers, they use them for marketing purposes, which means you may receive a lot of spam. They may also sell them to third parties that collect and barter them on the dark web. You can end up getting a lot of calls and texts from scammers who are trying to trick you into giving up personal information or downloading malware. Scammers may also try to use your cell phone number to access your online accounts.
How can we use ChatGPT and other forms of generative AI safely?
Never give one of these programs your personal information, such as your Social Security number, date of birth, mother’s maiden name or even your work history. If you provide this kind of information to ChatGPT and ask it to write you a résumé, for example, you never know where the information will go or whether it’s going to be used for a nefarious purpose. And with artificial intelligence, there’s even more proliferation of information that could be hacked or stolen.
How can we safeguard our information, especially when companies say they need to verify our identity?
Get a reusable digital identity that you can use over and over again, either in person or electronically with businesses that offer it. A reusable verified digital identity, like the one my company offers, is an “all-in-one” ID proofing and authentication solution. Users provide some basic information and Trua verifies it — using government-issued identification, Social Security numbers, dates of birth, names, aliases, addresses and so on — and issues a reusable TruaID.
Note: This item first appeared in Kiplinger's Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Read More
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Emma Patch joined Kiplinger in 2020. She previously interned for Kiplinger's Retirement Report and before that, for a boutique investment firm in New York City. She served as editor-at-large and features editor for Middlebury College's student newspaper, The Campus. She specializes in travel, student debt and a number of other personal finance topics. Born in London, Emma grew up in Connecticut and now lives in Washington, D.C.
- Sandra BlockSenior Editor, Kiplinger Personal Finance
-
4 Money Habits Boomers Swore By That Millennials Are Walking Away From
Millennials are trading tradition for flexibility when it comes to building wealth.
-
Abu Dhabi Adventures: New Thrills, Iconic Sights and Disney’s Latest Park
Discover the mix of culture, wildlife and modern marvels that make this Middle Eastern city a destination to watch.
-
When Tech is Too Much
Our Kiplinger Retirement Report editor, David Crook, sounds off on the everyday annoyances of technology.
-
Bonds Pay in Good and Bad Times
Bonds can act as a financial safety net through good times and bad. But different bonds carry different returns and risks, so do your homework before investing.
-
Protect Your Retirement From Extreme Weather Events
A rising tide of storms, fires, and heat is impacting retirees. Here's what you can do about it.
-
Seven Things You Should Do Now if You Think Your Identity Was Stolen
If you suspect your identity was stolen, there are several steps you can take to protect yourself, but make sure you take action fast.
-
The 8 Financial Documents You Should Always Shred
Identity Theft The financial documents piling up at home put you at risk of fraud. Learn the eight types of financial documents you should always shred to protect yourself.
-
Think Twice Before Co-Signing or Guaranteeing a Lease for Your Kids
If you co-sign or guarantee a lease for your kids, make sure you understand the risks.
-
How to Guard Against the New Generation of Fraud and Identity Theft
Identity Theft Fraud and identity theft are getting more sophisticated and harder to spot. Stay ahead of the scammers with our advice.
-
12 Ways to Protect Yourself From Fraud and Scams
Identity Theft Think you can spot the telltale signs of frauds and scams? Follow these 12 tips to stay safe from evolving threats and prevent others from falling victim.