How to Check for Identity Theft

Understanding identity theft

At its core, identity theft involves the unlawful acquisition of someone else's personal information, such as their Social Security number, credit card details or online login credentials. With this stolen information, thieves can drain your bank accounts, open lines of credit in your name and tarnish your reputation.

Different types of identity theft

To protect your identity and financial health, maintain your privacy and avoid legal problems, it's crucial to regularly check for signs of identity theft.

Identity theft can take various forms, each with its own unique implications.

• Financial identity theft: This occurs when a thief gains access to your financial information, such as credit card details or bank account numbers. They may use this information to make unauthorized transactions, open new accounts or even drain your existing funds.
• Medical identity theft: In these cases, an individual's personal information is used to obtain medical services, prescriptions or insurance coverage.
• Criminal identity theft: Identity theft that involves someone committing crimes using another person's identity, often leading to false criminal records and potential legal consequences for the innocent individual.
• Government identity theft: When someone uses your personal information to file taxes, receive benefits or interact with government agencies under your name.
• Employment identity theft: When thieves use your Social Security number to get a job or pass a background check.  
• Child identity theft: This occurs when a minor's personal information is exploited for fraudulent purposes.
• Synthetic identity theft: This involves creating a new identity using a combination of real and fabricated information, making detection and prevention challenging.

Signs your identity has been stolen

Early detection of identity theft is essential to minimizing its impact and protecting your personal and financial information. Signs of potential identity theft include unusual activity in your financial accounts, correspondence from creditors or lenders you didn’t initiate, mysterious credit alerts and missing pieces of mail.

Common methods used by identity thieves

Identity thieves use a variety of methods to obtain your personal information. Familiarize yourself with these methods so you can identify potential risks and preemptively defend against the threat of identity theft.

• Phishing scams: Fraudulent emails, messages or websites can trick individuals into providing personal information.
• Data breaches: Cybercriminals can gain unauthorized access to databases containing personal information, such as credit card details or Social Security numbers.
• Stolen wallets or documents: Physical theft of wallets, purses or important documents can give thieves your personal information.
• Use of skimming devices: These devices capture credit card information when individuals swipe their cards at compromised ATMs or point-of-sale terminals.
• Social engineering: Criminals can manipulate individuals through deception or persuasion to divulge sensitive information over the phone or in person.
• Dumpster diving: Thieves may go through your trash to look for personal information like bank statements, credit card offers or medical records.

» MORE: How to report business identity theft

Potential consequences of identity theft

The repercussions of identity theft can be far-reaching and have a significant impact on both your financial well-being and personal life.

Some common consequences include:

• Financial loss
• Damage to credit score
• Legal and criminal consequences
• Damaged reputation
• Emotional distress and time investment

» LEARN: How to check your credit score

What to do if your identity is stolen

Discovering your identity has been stolen can be upsetting. It’s crucial to remain composed, however, and take prompt action to minimize potential harm and restore your identity. If you find you are the victim of identity theft, act swiftly by completing the following steps:

1. Reach out to the appropriate authorities.
2. File a report on IdentityTheft.gov.
3. Inform your financial institutions so they can protect your accounts and mitigate further damage.
4. Reach out to one of the three nationwide credit reporting companies to place fraud alerts and security freezes on your credit reports.
5. Change your virtual passwords and PINs.
6. Continue to closely monitor your accounts and personal information.
7. Keep a record of all losses, conversations with financial institutions, where you filed reports and other actions you’ve taken.

» THE EARLIER, THE BETTER: How to report identity theft

How to protect yourself from identity theft

Being aware and keeping your personal information private is the key to protecting yourself from identity theft, but these precautions alone don’t always work. Investing in identity theft protection could be worth it. Other things you can do to protect yourself from identity theft include:

• Keep track of your personal and sensitive information.
• Collect your mail daily, if possible, as soon as it is delivered.
• Keep tabs on your credit score and bank accounts.
• Create hard-to-guess passwords.
• Take advantage of two-factor authentication alerts.
• Don’t give out personal information in response to unsolicited requests.
• Keep your personal information off social media.
• Be cautious on public Wi-Fi networks.
• Consider a credit freeze or lock.

» MORE: Steps to reduce the risk of identity theft

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