Identity fraud is a growing risk. 214,882 cases of fraud were reported to the National Fraud Database between January and June 2024, an increase of 15% compared to the same period in the previous year.
Anyone can be a victim of identity fraud. But if you’re a high net worth individual, fraudsters might specifically target you or your family.
In this post we’ll explore some ways you can protect yourself from identity theft as a high net worth individual.
Our High Net Worth insurance team is always on hand to discuss how you can best protect your most valuable assets. If you want to discuss your needs, get in touch on 0208 290 9086 or email us at personal@anthonyjones.com.
What is Identity Theft?
Identity theft is a crime that involves stealing an individual’s personal or financial information. If a criminal has enough of your personal details, they can open accounts or take out loans in your name, or even gain access to your bank account.
Often, victims of identity theft do not realise that they have been compromised for months, or even years. One victim reported that she didn’t find out until she tried to take out a mortgage. She was refused, because criminals had previously stolen her identity to take out a payday loan in her name.
How Does Identity Theft Happen?
A lot of identity fraud happens online, as a result of phishing attacks or data breaches. Criminals may also run elaborate social engineering scams, where they essentially groom an individual into giving up their personal information over a prolonged period.
Identity theft can also happen offline. If your wallet is lost or stolen, criminals can do a lot of damage with your bank cards or ID. Plus, criminals might learn a lot about you through rummaging in your bins. If you throw out an old bank statement, for example, it could give criminals all the information they need to start their scam.
How High Net Worth Individuals Can Prevent Identity Theft
Stay Resilient Online
Learn how to spot the signs of a phishing email. And if you accidentally click on a link in a phishing email, act quickly to limit the damage.
Also take care on social media. Keep the amount you share to an absolute minimum. Identity thieves can piece together some of your personal details based on certain clues. Photos of your house and home, for example, can help them to determine your address. So the less you share online, the better.
Specialist Software to Help Protect Your Identity Online
You can use a virtual private network (VPN) to encrypt all of your online activity. Also look for specialist “anti-track” software, which can regularly randomise your digital fingerprint to make it harder for criminals to track you.
Get good antivirus technology and regularly scan your system for threats. Use a password manager to make it easier to set unique passwords for every site and service.
Make sure you regularly update any software you use, as criminals are capable of exploiting and working around even the most secure systems. If your software’s out of date, it could leave you vulnerable.
Sign Up For Bank and Credit Reports
Your bank should automatically notify you of any suspicious activity on your account. But they may not spot the subtle signs of identity theft, such as an unusual transaction here and there. So sign up for whatever reports your bank offers, and be sure to check your statements for any inexplicable transactions.
You can also sign up for regular credit reports. Identity theft can affect your credit score, so if it changes drastically for no clear reason, you’ll know that something’s not right.
If you know you won’t need to access your credit report for the foreseeable future, you could request a credit freeze. This will prevent anyone from opening any accounts in your name. You can always unfreeze your credit again when necessary.
How to Stop Thieves Stealing Your Personal Documents and Bank Cards
Shred any personal documents before you dispose of them.
Install motion-activated lights by your outdoor bins, to deter criminals from “dumpster diving” for personal details.
Consider using a digital wallet on your smartphone, to save carrying bank cards in a wallet. And take as much care to safeguard your smartphone as you would any other computer. Use biometric security features and multi-factor authentication for payments.
What To Do If You Think Your Identity Has Been Stolen
- Contact your bank. Ask them to cancel any existing cards, and to withhold any forthcoming transactions.
- Change all of your passwords and pins for all of your bank accounts, along with any services you use online.
- Register with Cifas. For just £25, they can give you Protective Registration for two years. This means that organisations will have to carry out extra checks whenever your name or personal details are used to apply for services.
- Take a look at this Identity Theft Victim’s Checklist, a free resource from Action Fraud that outlines additional steps you might take.
Are You Covered For Identity Theft?
At Anthony Jones, we can help you ensure you have all the cover you need as a high net worth individual.
Our High Net Worth insurance team is always on hand to discuss how you can best protect your most valuable assets. If you want to discuss your needs, get in touch on 0208 290 9086 or email us at personal@anthonyjones.com.
