Definition
Identity theft occurs when someone wrongfully obtains and uses another person's personal data in a way that involves fraud or deception, typically for economic gain. This personal data may include your name, date of birth, Social Security number, credit card numbers, bank account information, online credentials, or other sensitive information. Identity thieves can use this information to open new credit accounts, take out loans, file tax returns, receive medical services, or commit other crimes in your name. Identity theft is a serious crime that can damage your credit, finances, and reputation, potentially taking months or years to resolve. Common methods of identity theft include data breaches, phishing scams, mail theft, and information retrieval from discarded documents.
Frequently Asked Questions
What are the warning signs of identity theft?
Warning signs include: unexplained withdrawals from your bank account; missing bills or statements; calls from debt collectors about debts you don't recognize; unfamiliar accounts or charges on your credit report; rejection for credit or loans despite good credit; receiving medical bills for services you didn't use; notification of a data breach involving your information; unexpected denial of insurance claims; and notice from the IRS that multiple tax returns were filed in your name or that you have income from an employer you don't work for.
What should I do if I suspect identity theft?
First, place a fraud alert with one of the three credit bureaus (they'll notify the others). Request your credit reports and review them for unauthorized accounts. Report the theft to the FTC at IdentityTheft.gov to create an identity theft report and recovery plan. File a police report and keep a copy. Contact companies where fraud occurred to close or freeze accounts. Change passwords for all your accounts. Place a credit freeze for maximum protection. Consider subscribing to a credit monitoring service. Continue monitoring your credit reports and financial statements for unusual activity.
How can I protect myself from identity theft?
Protect yourself by: using strong, unique passwords and two-factor authentication; being cautious about sharing personal information online or by phone; shredding sensitive documents before disposal; securing your mail; keeping your Social Security card at home; using secure internet connections; regularly checking your credit reports; setting up account alerts for financial transactions; using antivirus software; freezing your credit if you're not actively applying for loans; avoiding public Wi-Fi for sensitive transactions; and being wary of phishing attempts via email, phone, or text.
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