How can individuals monitor for identity theft?

Regularly reviewing credit reports is a critical practice for individuals looking to monitor for identity theft. Credit reports contain detailed records of an individual's credit history, including credit accounts, payment history, and any inquiries made into the credit report. By checking their credit reports at least annually, individuals can spot inaccuracies or unfamiliar accounts that may indicate fraudulent activity.

Additionally, many credit reporting agencies allow consumers to monitor changes to their reports more frequently, alerts for suspicious activity, and the ability to dispute inaccuracies directly through their services. This proactive approach enables individuals to detect potential identity theft early, reducing the likelihood of severe financial damage.

In contrast, the other options, while they may have their own merits, do not effectively contribute to monitoring identity theft. Avoiding online transactions can reduce risk but does not provide a method for ongoing monitoring. Using social media is generally unrelated to identity theft monitoring and can even increase risk if personal information is shared publicly. Sharing passwords, regardless of trust, increases the risk of unauthorized access to personal accounts and information. Hence, monitoring credit reports stands out as a direct and efficient strategy for detecting identity theft.