Adam Singer is Principal at Credit Report Law Group helping consumers with credit report errors to obtain corrections and compensation.
Identity theft, online banking and credit card fraud, and other electronic scams, all of which my firm deals with in some capacity, are all growing issues in today’s digital age, especially with advancements in technology such as artificial intelligence fueling more sophisticated attacks. As reported by the Identity Theft Resource Center—and previously discussed in this column—publicly reported data breaches and cyberattacks are on the rise, and scammers are becoming increasingly creative.
This article will explore new strategies to safeguard your personal and financial data from these ever-evolving threats.
AI Powers Travel Scams
One recent trend to be aware of is artificial intelligence-assisted travel scams. According to a recent scam alert from the ITRC, Booking.com reported a 500% to 900% increase in travel scams due to AI. In one scam, criminals use phishing emails to convince victims to provide sensitive personal information under the guise of fake internet booking links. Artificial intelligence is used in these scams to create more convincing phishing emails and booking links. There has been a massive increase in these types of scams over the past few months due to the growing sophistication of artificial intelligence.
The ITRC recommends that only legitimate websites and companies be used to book travel plans. Their report encourages consumers to consider that most bookings can be handled directly through a company’s website, rather than through communications with someone who claims to be an official representative. Caution is essential to avoid falling victim to these travel scams. The report also identifies various “red flags” to look out for, such as travel offers that seem too good to be true or communication riddled with grammatical errors or typos. These signs often indicate a scam.
The ITRC has also released fact sheets discussing indicators consumers can look out for to identify potential identity theft. One fact sheet provides a checklist of possible signs, including unfamiliar charges or accounts appearing on reports, notification of an account being opened in your name that you did not initiate or notification by law enforcement or a government agency that there is a warrant in your name for a crime you did not commit. The ITRC recommends that if any of these signals apply to a consumer, they contact the ITRC immediately to create a plan to recover accounts and bolster identity security.
Stay alert to common indicators of whether your identity has been compromised. Receiving a letter or an email that says your information was exposed in a data breach is an obvious indicator, but there are also other ways in which your personal information can be accessed. Having documents such as a Social Security card, driver’s license, tax documents, rental agreements or mail stolen could result in information exposure. Generally, the ITRC encourages caution and discretion when sharing information and advises being especially careful with the placement and security of documents that may contain sensitive information. Consumers who suspect their information has been compromised may wish to contact the ITRC to assess whether this exposure has led to identity misuse or fraud.
Act Quickly If You Suspect Identity Theft
As an attorney focusing on Fair Credit Reporting Act claims, I’ve worked with numerous victims of identity theft who face persistent issues with their credit reports due to fraudulent activity. In this column, I’ve published several articles on the steps consumers should take if they suspect their identity has been stolen, offering practical advice based on real cases I’ve handled.
If you suspect you’ve been a victim of identity theft, it’s essential to take immediate steps to minimize the damage. Start by checking your credit reports for any suspicious activity; under federal law, you’re entitled to a free annual report from each of the three major credit bureaus—Experian, Equifax and TransUnion—available at AnnualCreditReport.com.
If you notice any unrecognized accounts or charges, you should consider placing a fraud alert or a credit freeze with the bureaus to prevent new accounts from being opened in your name. A credit freeze can be especially effective, as it restricts access to your credit report without your permission.
Additionally, monitor your bank and credit card accounts daily for unusual transactions and report any suspicious activity to your financial institution immediately. Many financial institutions now offer tools such as transaction alerts, which can give you real-time updates if there’s any unauthorized activity. Document every step you take, as thorough records can be invaluable if you need to dispute errors or take legal action later.
And don’t forget that legal representation, often at no cost out of pocket, is just a phone call away. If you discover errors or fraudulent accounts on your credit report, you can consult an FCRA attorney. Some FCRA attorneys not only offer free consultations but also take most if not all cases on a contingency basis—meaning that consumers pay nothing out of pocket.
Know Who You’re Dealing With
Ultimately, the best line of defense against potential identity fraud is vigilance when interacting with online communications. Clicking on suspicious links or providing sensitive information to unknown individuals exposes consumers to identity theft risks. Make sure you engage only with trusted individuals and verified vendors to keep your data secure.
The information provided here is not legal, investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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