Learn what identity theft is, how to protect yourself against it, and how to know if someone stole your identity.
- What Is Identity Theft?
- How To Protect Yourself Against Identity Theft
- How To Know if Someone Stole Your Identity
- Monitoring Services, Recovery Services, and Identity Theft Insurance
What Is Identity Theft?
Identity theft is when someone uses your personal or financial information without your permission.
They might steal your name and address, credit card, or bank account numbers, Social Security number, or medical insurance account numbers. And they could use them to
- buy things with your credit cards
- get new credit cards in your name
- open a phone, electricity, or gas account in your name
- steal your tax refund
- use your health insurance to get medical care
- pretend to be you if they are arrested
How To Protect Yourself Against Identity Theft
Taking steps to protect your personal information can help you avoid identity theft. Here’s what you can do to stay ahead of identity thieves.
Protect documents that have personal information
Keep your financial records, Social Security and Medicare cards, and any other documents that have personal information in a safe place. When you decide to get rid of those documents, shred them before you throw them away. If you don’t have a shredder, look for a local shred day, or use a marker to block out account numbers.
If you get statements with personal information in the mail, take your mail out of the mailbox as soon as you can.
Ask questions before giving out your Social Security number
Some organizations need your Social Security number to identify you. Those organizations include the IRS, your bank, and your employer. Organizations like these that do need your Social Security number won’t call, email, or text you to ask for it.
Other organizations that might ask you for your Social Security number might not really need it. Those organizations include a medical provider, a company, or your child’s school. Ask these questions before you give them your Social Security number:
- Why do you need it?
- How will you protect it?
- Can you use a different identifier?
- Can you use just the last four digits of my Social Security number?
Protect your information from scammers online and on your phone
If you’re logging in to an online account, use a strong password.
Add multi-factor authentication for accounts that offer it. Multi-factor authentication offers extra security by requiring two or more credentials to log in to your account. The additional credentials you need to log in to your account fall into two categories: something you have — like a passcode you get via text message or an authentication app, or something you are — like a scan of your fingerprint, your retina, or your face. Multi-factor authentication makes it harder for scammers to log in to your accounts if they do get your username and password.
Do not give your personal information to someone who calls, emails, or texts you. It could be a scammer trying to steal your information.
How To Know if Someone Stole Your Identity
In addition to taking steps to protect your information, it pays to know how to tell if someone stole your identity. There are things you can do yourself to detect identity theft. There also are companies that sell credit and identity monitoring services.
What you can do to detect identity theft
Here’s what you can do to spot identity theft:
- Track what bills you owe and when they’re due. If you stop getting a bill, that could be a sign that someone changed your billing address.
- Review your bills.Charges for things you didn’t buy could be a sign of identity theft. So could a new bill you didn’t expect.
- Check your bank account statement.Withdrawals you didn’t make could be a sign of identity theft.
- Get and review your credit reports.Accounts in your name that you don’t recognize could be a sign of identity theft. Here’s how you can get your free credit reports.
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If you discover that someone is misusing your personal information, visit IdentityTheft.gov to report and recover from identity theft.
Monitoring Services, Recovery Services, and Identity Theft Insurance
Many companies sell identity theft protection services that may include credit monitoring, identity monitoring, identity recovery services, and identity theft insurance. These services also might be offered by your
- bank or credit union
- credit card provider
- employer’s benefits program
- insurance company
Credit monitoring services
Credit monitoring services scan activity that shows up on your credit reports. They might monitor activity at one, two, or all three of the major credit bureaus — Equifax, Experian, and TransUnion.
Credit monitoring services will usually alert you when
- a company checks your credit history
- a new loan or credit card account appears on your credit reports
- a creditor or debt collector says your payment is late
- public records show that you filed for bankruptcy
- someone files a lawsuit against you
- your credit limit changes
- your personal information, like your name, address, or phone number, changes
Credit monitoring services will not alert you when
- someone withdraws money from your bank account
- someone uses your Social Security number to file a tax return and collect your refund
If you’re considering using a credit monitoring service, here are some questions you can ask them:
- How often do you check credit reports for changes?
- Which of the three credit bureaus do you monitor?
- Is there a limit to how often I can review my credit reports?
- Will I be charged each time I review my credit reports?
- Are other services included, like access to my credit score?
Identity monitoring services
Companies that offer identity monitoring services check databases that collect different types of information to see if they contain new or inaccurate information about you. Those could be a sign that someone is using your personal information. These services can detect uses of your personal information that won’t show up on your credit report.
Identity monitoring services may tell you when your information shows up in
- a change of address request
- court or arrest records
- orders for new utility, cable, or wireless services
- an application for a payday loan
- a request to cash a check
- on social media
- on websites that identity thieves use to trade stolen information
Most identity monitoring services will not alert you if someone uses your information to
- file a tax return and collect your refund
- get Medicare benefits
- get Medicaid benefits
- get welfare benefits
- claim Social Security benefits
- claim unemployment benefits
Identity recovery services
Companies that sell credit and identity monitoring services also may offer identity recovery services to help you fix any damage caused by identity theft. These services may be included or cost extra. Some of the services they offer may be things you can do on your own for little or no cost.
Identity recovery services typically give you access to counselors or case managers who will help you recover your identity. They may
- help you write letters to creditors and debt collectors
- place a freeze on your credit report to prevent an identity thief from opening new accounts in your name
- guide you through documents you have to review
Some services will represent you in dealing with creditors or other institutions if you formally grant them authority to act on your behalf.
Identity theft insurance
Companies that sell monitoring services also may offer identity theft insurance. These services may be included or cost extra.
Identity theft insurance may cover
- out-of-pocket expenses directly associated with reclaiming your identity, like
- the cost of copying documents
- postage costs for sending documents
- costs for getting documents notarized
- wages you lost
- legal fees you paid
Identity theft insurance generally won’t reimburse you for money stolen or financial loss resulting from the theft. Most policies won’t pay if your loss is covered by your homeowner’s or renter’s insurance. If you’re considering getting identity theft insurance, ask about the deductible and find out what’s covered and what isn’t.
Find out how to recognize the signs of medical identity theft, tax identity theft, and child identity theft.
I'm a seasoned expert in the field of identity theft and cybersecurity, with a proven track record of providing valuable insights and practical guidance on protecting personal information. Over the years, I have closely followed the evolving landscape of cyber threats, staying abreast of the latest techniques employed by identity thieves and the best practices to safeguard against such malicious activities.
In the realm of identity theft, it is crucial to understand the various aspects involved, ranging from the definition of identity theft to practical steps for protection and detection. Let's break down the key concepts covered in the provided article:
Identity Theft:
Definition: Identity theft occurs when someone illicitly uses your personal or financial information without your consent. This may involve stealing your name, address, credit card numbers, bank account details, Social Security number, or medical insurance account numbers.
How to Protect Yourself Against Identity Theft:
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Secure Personal Documents:
- Keep financial records, Social Security cards, and documents with personal information in a secure location.
- Shred documents before discarding them to prevent unauthorized access.
-
Be Cautious with Social Security Number:
- Only provide your Social Security number to organizations that genuinely need it (e.g., IRS, bank, employer).
- Ask questions before sharing your Social Security number to assess the necessity and security measures.
-
Online and Phone Security:
- Use strong passwords for online accounts.
- Enable multi-factor authentication for enhanced security.
- Avoid sharing personal information with unsolicited callers, emails, or texts to prevent falling victim to scams.
How to Know if Someone Stole Your Identity:
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Self-Detection:
- Monitor bills for any unexpected changes or non-receipt.
- Review bank account statements for unauthorized transactions.
- Check credit reports for unfamiliar accounts.
-
Credit and Identity Monitoring Services:
- Credit monitoring services track credit report activity, alerting you to changes.
- Identity monitoring services check various databases for signs of identity misuse.
- Identity recovery services assist in fixing damage caused by identity theft.
Monitoring Services, Recovery Services, and Identity Theft Insurance:
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Credit Monitoring Services:
- Alert on credit history checks, new accounts, late payments, and personal information changes.
- Do not cover activities like bank withdrawals or tax return misuse.
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Identity Monitoring Services:
- Detect personal information use in address changes, court records, utility service orders, etc.
- May not cover activities like tax return or benefits claims.
-
Identity Recovery Services:
- Aid in the recovery process, providing support in dealing with creditors and managing credit reports.
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Identity Theft Insurance:
- Covers out-of-pocket expenses associated with reclaiming identity.
- Usually doesn't reimburse financial losses; inquire about coverage details and deductibles.
In conclusion, staying informed about identity theft and implementing proactive measures is essential for safeguarding personal information in today's digital age. If you suspect identity theft, reporting and recovery resources such as IdentityTheft.gov can be invaluable.
