Because of the large number of retailers and banks reporting data breaches recently, the CFP Board is suggesting a few simple steps your clients can take to avoid identity theft, and actions to take should they fall victim.

“As long as we exist, transact, and communicate in today’s world, none of us is immune to the devastating financial and personal consequences of identity theft,” said Eleanor Blayney, CFP Board consumer advocate.

To prevent theft, the organization suggests that consumers:

• Keep hard copies of financial information in a small storage safe or a safe deposit box.
• Be selective when using a debit card. Only carry necessary identification and one credit card, and don’t provide your Social Security number unnecessarily.
• Create strong, unique passwords for every online account, and password protect your cell phone. 
• Avoid accessing any important personal information through open, public wireless connections. 
• For e-mail, consider using a cloud storage provider when sending files with personal information. Only open e-mail from sources you know, and watch for red flags suggesting a scam, such as poor grammar and spelling.

To detect theft, the CFP Board suggests that consumers:

• Review bank and credit card statements to look for erroneous charges.
• After seeing a doctor, pay attention to the explanation of benefits (EOB) for any discrepancies in services, insurance coverage and charges.
• Study your annual Social Security statement to see if it shows larger earnings than you received. If so, someone else may be using your Social Security number. 
• Request your credit report at AnnualCreditReport.com to receive a free report from each of the three major credit bureaus and review those reports every year at least.

Should you detect a theft, the CFP Board advises that you place a fraud alert and credit freeze with any of the three credit bureaus.

“We have to be our own detectives, constantly on the watch for theft of our personal and financial information,” said Blayney. “This means paying regular and frequent attention to a variety of key statements and reports."