Active-Duty Service Members at Higher Risk of Identity Theft

According to recent Federal Trade Commission data, active-duty service members are far more likely to experience digital data theft than the general public.

One of the primary reasons for this is because, in the past, the Department of Defense (DoD) and its contractors frequently used social security numbers (SSN) to identify and authenticate service members for greater efficiency with less chance for errors.

However, the increased threat of identity theft created a policy shift, and now, where possible, the SSN has been replaced with an Electronic Data Interchange-Personal Identifier (EDI-PI). It is printed on DoD identification cards and used for individual access to systems, on forms, in digital signatures, and for other uses typical of physical and technical identification processes. 

Despite this change, many service members remain at an increased risk of identity theft. Large-scale data breaches routinely make headlines and can involve millions of sensitive records thieves use to steal from victims and companies in many ways.

The rise of digital money management makes it easy to track your cash flow and budget from anywhere there’s an internet connection. But the leap from paper to cyberspace increases your odds of becoming a victim.

For example, in 2021, military consumers reported a 20% increase in incidents of identity theft, fraud, and other digital crime costing $267 million, an astounding 118% rise from 2020.

Companies entrusted with sensitive information have taken several steps to make it harder for criminals to access this data. However, despite these best efforts, bad actors have become increasingly sophisticated and creative, inventing new ways to hack into large information bases, which they then use to make victims’ lives a living hell.

While the business community has generally done a good job of protecting your information, you also have an obligation to protect it.

Protecting Yourself from Identity Theft 

Many service members and all officers must pass a national security clearance check that includes reviewing their credit history and ability to meet financial obligations. Going forward, the financial status of service members with security clearances is continuously evaluated.

Reviews that uncover a history of failing to meet their financial obligations, being in excessive debt, or having a high debt-to-income ratio can result in a service member’s security clearance being revoked.

Identity theft often results in fraudulent credit accounts and past-due bills appearing on a service member’s credit report. This can distract and derail the service member’s career, undermining military readiness and national security.

Frequent relocation increases service members’ risk of identity theft. Permanent change of station orders usually trigger home and apartment searches, spouse employment searches, and utility connections that may increase the risk of personal information falling into the hands of identity thieves.

To better guard against these significant breaches, here are some things you can do to protect yourself and your family members.

Place An Active Duty Alert With Credit Bureaus

Consider placing an Active Duty Alert with credit bureaus regularly monitoring financial accounts and sensitive documents. An active duty alert is a fraud alert that protects deployed military personnel from identity theft and fraudulent activities.

These alerts let businesses know that you are probably out of the country and that the business must take reasonable steps to verify your identity before granting new credit in your name.

The alert flags credit information for identity verification and removes your name from the credit bureaus’ marketing lists for two years. That makes it harder for someone to open unauthorized accounts in your name while you are deployed. 

Active duty alerts are free, and you can request one from one of the three major credit bureaus: Equifax, Experian, or TransUnion. They remain in place for 12 months, but you can renew them for the length of your deployment.

Request a security freeze

A security freeze lets you freeze or unfreeze your credit files with Experian, TransUnion, and Equifax. A security freeze is free and prevents prospective creditors from accessing your credit file at these three companies.

Without these credit files, creditors will not let you or others open new credit accounts in your name.

Be especially vigilant during relocations 

Service members are more vulnerable to identity theft because frequent relocations may require them to regularly obtain new housing, utilities, and other move-related services. According to the DoD, approximately one-third of military service members experience a permanent change of station annually.

When information about fraudulent debts appears on credit reports because of identity theft, it can limit housing options through higher mortgage rates or increase costs for rental housing when landlords charge risk-related add-on fees or reject applicants outright because they are deemed a poor credit risk.

Review your credit reports regularly

Military consumers should review their credit reports regularly and dispute inaccurate information. You can get a free copy of your report from each of the three major bureaus annually (Equifax, Experian, and TransUnion) at least once yearly. You can print or view your entire file at annualcreditreport.com.

If you can, space out your requests to pull a different report every four months to minimize the impact on your credit score. 

Active-duty service members, reservists on active duty, and members of the National Guard can also receive free credit monitoring services but must place a separate request with each credit reporting bureau.

If you spot an identity theft or related financial problem, contact your installation’s Personal Financial Manager (PFM) or Legal Assistance Office for free advice and assistance.

Secure Sensitive Documents

This applies to hard copy documents and electronic files that include your military ID, Social Security card, birth certificate, credit card information, or any other document with personally identifying information.

Only share information from these documents when absolutely necessary. If you get a request to do so, vet the request closely. Do not freely give out this information under questionable circumstances.

Use password protection and anti-virus software

Use strong and unique passwords for all online accounts. Do not use the same password for all accounts, or you could be opening the door for rampant abuse of all your sensitive financial information.

Never use simple passwords that a thief could guess, like your birthday, address, or child’s name. The best passwords are at least twelve characters and include a combination of letters, numbers, and symbols.

Change passwords for your financial accounts every few months to lock out any thieves who may have gained access.

Enable two-factor authentication for sensitive accounts that support this level of security. Also install anti-virus software and think twice before clicking on suspicious links.

Secure documentation during deployment

Store sensitive documents securely before deployment. Consider keeping these under lock and key in a fireproof safe or safety deposit box.

 Also, only use secure channels when accessing your financial information from outside the US.

Minimize what you carry in your wallet

Don’t carry anything in your wallet that you don’t absolutely need. That includes your social security card, birth certificate, or marriage certificate.

That way, if you lose your wallet or it gets stolen, the thief won’t get access to your confidential information. 

Use a digital security app

There are several on the market, but we like Aura the best. Aura is a recognized leader in intelligent safety for consumers and has partnered with Blue Star Families, the nation’s largest grassroots military family support organization.

Together, they are working to address the higher-than-average rates of identity theft, fraud, and other types of digital attacks among active-duty service members, veterans, and their families. 

Aura and Blue Star Families offer educational resources and intelligent safety tools to the organization’s more than 1.5 million military family members, including a comprehensive digital safety guide for those managing a PCS and guidance tailored to the unique needs of veterans.

Aura has also launched a discount and digital hub for active-duty service members, veterans, and their families, as well as complimentary access to Aura’s all-in-one digital security app. 

For free access to military-specific digital safety guides, resources, and discounted tools, go here.

Review your account statements monthly

Look for unusual activities and fraudulent transactions. Criminals will often slip in small charges that they hope you’ll miss.

Consider importing your bank and credit account transactions into an online or desktop financial software at least once weekly. These programs can help you check amounts against your receipts and categorize them for your budget.

Send and receive less confidential mail

Identity thieves love to steal confidential documents from your mailbox, and they don’t even have to live next door to do it. 

Having a locking mailbox isn’t enough protection. Criminals can change your mailing address without your knowledge, sending your mail nationwide.

Stay a step ahead of thieves by going paperless. Opt-in to receive as many bills, account statements, and confidential documents as you can via email or online account.

Visit OptOutPreScreen.com to have your name removed from direct marketing lists. Doing so will minimize certain types of junk mail, such as preapproved credit card and insurance offers.

Shred documents with confidential information

Shredding documents is a must! Shred anything and everything someone could use against you. This includes personal documents, old medical or financial statements, and duplicate checks. 

Don’t browse confidential sites in public

Never visit a confidential site, like your bank or investment accounts, from unsecured locations or public computers unless you have a VPN service. Refrain from checking any important accounts at coffee shops, libraries, or other places with a public internet connection. 

Be suspicious when approached

Be suspicious if you receive an email, letter, or phone call from someone who says they’re from a government agency, bank, credit card company, or any other financial institution.

Identity thieves will pose as trusted representatives so they can convince you to give up your confidential information. Always ask for their name, phone number, or email to call them back. Then, do a web search to see if their story checks out. 

If they drop the name of a legitimate agency or company, call the agency or company’s main line to verify that the person works there and that there’s a legitimate need for them to contact you.

Use a credit card when possible

Getting your credit card stolen is inconvenient, but your credit card company should protect you. 

Having your debit card stolen is usually worse. Thieves can empty your bank account in a matter of hours, causing you to bounce checks or overdraft your account. 

Protecting Your Children’s Identity Information

Sadly, identity theft among children is a growing crime, including those in military families.

One of the biggest problems with identity theft with children is that it often goes undetected for years. Children don’t usually apply for credit, so there is little need to pull a credit report.

And they don’t normally begin applying for jobs until they’re teenagers. When they come of age, children can learn they already have a substantial financial profile, and in many cases, it’s not a good profile.

If the thief had poor credit or used the credit profile to bilk creditors, the child will start life with that information listed in the credit report, and it can take a long time to repair the damage that’s been done.

Protecting your children’s identity can be more difficult than protecting your own. Since the child’s credit profile is inactive, and the child doesn’t necessarily know when not to disclose personal information, it can be close to impossible to know when their identity has been compromised.

However, there are steps you can take to minimize the potential theft.

Tell your children not to give out information unless it’s absolutely necessary. Children tend to be trusting of other people, especially adults. But you should make it clear that they should never give out too much information. 

Keep their Social Security Number (SSN) private. Social Security numbers are issued at birth, and today, it seems as if everyone wants your Social Security number as a matter of course. To protect them, it’s best not to give your child a Social Security card until they’re well into their teens.

Do not let them memorize the number either. Your child most likely won’t need to know his or her Social Security number until applying for a job; until then, keep it under lock and key.

Run your child’s credit report periodically.  One of the best ways to know if a child’s identity has been stolen is to run a credit report. Ordering a report every year or two will let you know if a theft has occurred. 

Order a credit freeze or extended fraud alert. If your child’s identity has been stolen, proceed in the same way you would for yourself. Order a credit freeze or extended fraud alert to the credit repositories (Trans Union, Experian, and Equifax), and then file a report with the police.

The freeze or fraud alert will prevent further use of your child’s identity, while the police report will launch a criminal investigation.

If you’re a victim of identity theft

If you or a loved one is a victim of military identity theft, acting quickly is essential.

Report the identity theft to the Federal Trade Commission.  The FTC’s online system lets you file an identity theft report and start the recovery process.

Go to IdentityTheft.gov and report as much information as you can. IdentityTheft.gov will create an Identity Theft Report and recovery plan based on the information you enter.

File a police report. Reporting the theft to local law enforcement can help build a case if you need to contest fraudulent charges.

Contact your base’s legal office. Many military bases offer free legal support for identity theft victims.

Call the companies where you know fraud occurred.  Explain that someone stole your identity and ask them to close or freeze the impacted accounts.

Place fraud alerts and credit freezes. Notify all three credit bureaus to secure your credit profile.

Leverage the Servicemembers Civil Relief Act (SCRA). It provides protections for active-duty personnel impacted by financial fraud, including interest rate reductions.

Change logins, passwords, and PINs for your accounts. Move quickly in case one data breach leads to others that could impact you.

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