What Are the Different Types of Identity Theft?

Financial identity theft

Financial identity theft is when someone uses your financial information without your consent. For example, they might try to access your existing accounts or create new accounts.

Credit card fraud is the most common form of financial identity theft. You’ll typically recognize it as unauthorized charges on your account, but it’s more frequently used to open an account in your name. In 2024, 450,000 cases of credit card fraud were reported — 400,000 of those cases were unauthorized account openings.

Unchecked financial identity theft can lead to destroyed credit and financial hardship. When criminals open accounts in your name, they will likely max out the credit limit and never make a payment. Your credit becomes damaged, leaving you unable to get a new loan until you resolve the matter.

If you happen to be looking for an apartment or trying to buy a home during this time, your poor credit could even lead to housing insecurity.

How to protect yourself from financial identity theft

You can protect yourself from financial identity theft by:

• Monitoring your credit for any new accounts
• Shredding important documents
• Using strong passwords on your financial accounts
• Enabling two-factor authentication when possible

Taking these actions could save you time and money down the road.

Medical identity theft

Medical identity theft is when someone uses your information to receive medical care, fill prescriptions or file fraudulent insurance claims.

Medical identity theft could have life-altering consequences. When someone steals your medical identity, false information is added to your medical files. As a result, you could:

• Receive improper medical care, leading to poor outcomes at best or loss of life at worst
• Face fraudulent medical bills sent to collections, impacting your credit
• Encounter insurance claim denials

It can be difficult to spot medical identity theft since you don’t typically have access to your medical file. It’s also difficult to correct since medical information doesn’t have a central location. So if incorrect information was sent to other providers, it can be tough to track it all down.

How to protect yourself from medical identity theft

Protect yourself from medical identity theft by reading any Explanations of Benefits (EOB) you receive. If you see an appointment or treatment you don’t recognize, contact the provider to clear up any confusion.

Also, shred important documents and stay alert when filling out forms at the doctor’s office. Don’t leave your information unattended. Lastly, keep an eye on your credit report. Collections will receive unpaid medical bills, which will appear on your credit report.

If you discover medical identity theft, let your medical provider know right away. Get copies of any medical records you think are compromised. Also, dispute any past-due accounts that appear on your credit report.

» DISCOVER: What debt collectors can't do

Tax identity theft

Tax identity theft is when someone files a return using your Social Security number (SSN).

If you receive information about a tax return you didn’t file, contact the IRS Identity Protection Specialized Unit at 800-908-4490 immediately.

When this happens, the IRS rejects your return, which delays your filing because you’ll need to clear up the identity theft before you can file your legitimate claim. Reports state that clearing this with the IRS can take close to two years. You’ll need to file a paper return with Form 14039 while you wait for a resolution.

Unfortunately, you may not know about the fraudulent return until the IRS rejects your own return since the fraudulent one was already filed.

How to protect yourself from tax identity theft

To protect yourself from tax identity theft, don’t give out your SSN without good reason. Always use secure communication methods when preparing taxes and don’t send sensitive information over text or email. Set up an Identity Protection PIN on your IRS account for an extra layer of protection.

File your tax return as early as you can, since the IRS will assume the first return received is the correct one. Also, if you mail your return, take it directly to the post office to prevent theft. Don’t leave it in your mailbox.

Employment identity theft

Employment identity theft occurs when someone uses your Social Security number to get a job and then earns wages under that number.

E-Verify is a service that helps prevent someone from obtaining employment under your Social Security number. 

With fake income under your Social Security number, you may end up owing taxes on income you didn’t earn. It can also affect government benefits, such as unemployment, welfare or SSN benefits.

You may notice you’ve been a victim of employment identity theft if you receive an IRS notice stating you have “unreported income.” You may also receive a W-2 or 1099 from an employer you don’t recognize.

You’ll need to file a report with the Federal Trade Commission and Form 14039 with the IRS. You can also lock your Social Security number with the Department of Homeland Security.

How to protect yourself from employment identity theft

Protect yourself by taking these actions:

• Keep your Social Security number safe.
• Don’t give out your SSN unless it’s truly necessary.
• Always use secure communication channels.
• Lock your SSN at E-Verify.

Child identity theft

Child identity theft occurs when someone steals a child’s Social Security number and other personal information. They may use it to work or open bank accounts in the child’s name, earning unclaimed income and ruining the child’s credit. The fraudster may also use the child’s information to claim government benefits, scamming the system.

Child identity theft can be hard to spot because you probably aren’t keeping tabs on your children’s credit scores. But you might request your child’s credit report to ensure it’s clean. Children are entitled to one free credit report per year from each credit bureau.

Also, pay attention to any unexpected bills in your child’s name or IRS notifications. Don’t assume that it’s a mistake or a scam. It could be a sign that someone is using your child’s information illegally.

How to protect your child from identity theft

To protect your child from identity theft, be cautious of giving out their Social Security number. Shred documents containing their SSN and wipe any electronic devices before disposing of them. You can also freeze their credit at all three credit bureaus, which makes it more difficult to open new credit accounts.

» LEARN: Credit freeze vs. credit lock: What's the difference?

Danny Karon, author of “Your Lovable Lawyer’s Guide to Legal Wellness,” strongly advised that parents or guardians should consider freezing their child’s Social Security Number under a “protected minor” freeze on their credit. It’ll block credit from being opened in their name and under their SSN. Freeze it with all three credit agencies: Experian, Equifax and Transunion.

You’ll need your child’s SNN, birth certificate and proof that you are the child’s parent or guardian, and you should verify it’s frozen every year. Karon noted to not only keep PINs and credentials in a secure location but also in a secure backup, “so your child can start building credit when the time comes.”

Criminal identity theft

Criminal identity theft is when someone uses your personal identification when arrested for a crime. You could then have a criminal record or fraudulent traffic tickets, creating a variety of problems. For example, you may have an outstanding warrant for your arrest or you’re unable to get a job.

Frequently, the thief forges your Social Security card or driver's license, allowing them to have ID that incorrectly identifies them as the victim. Criminals can create a fake ID if they have a copy of your state-issued ID card or birth certificate.

How to protect yourself from criminal identity theft

It can be difficult to know that someone has stolen your identity to commit crimes until you have a problem with law enforcement. However, there are a few steps you can take to protect yourself:

• Always be aware of phishing scams that ask for your personal information.
• Never give personal info to someone who initiated the contact. If a company or government agency calls and asks for your personal details, hang up and call the company back directly.
• Use a virtual private network (VPN) while on public Wi-Fi. Fraudsters can monitor public Wi-Fi and access your data, including passwords and other identifying information.
• Don’t ignore unexpected bills or other notices you may receive in the mail.

If you have been the victim of criminal identity theft, you can contact the Identity Theft Resource Center at 888-400-5530. Your state may also have resources.

Karon explained that you’ll need to prove you aren’t the person the law enforcement is looking for, which might include providing fingerprints and official documentation.

“In a criminal case, you’ll need to work through the correct law enforcement departments and the courts who are handling the criminal case. … Ask the arresting agency where they have shared the data. With the TSA? FBI? U.S. Marshals? Work through the originating agency to get them to correct the information,” he said.

Synthetic identity theft

Synthetic identity theft is when fraudsters create a fake profile using some real pieces of information, but combined with fake info. For example, they may use someone’s real SSN combined with a made-up name and address. This “fake” person can then apply for loans, file fraudulent tax returns or obtain medical care.

This type of fraud can be extremely difficult to catch. Criminals can spend years building up an authentic-looking profile before committing any major fraud. Plus, credit monitoring and dark web scans may not catch the fraud, leaving you vulnerable for a longer period of time.

» MORE: How to check for identity theft

Also, since they’re using a fake name and address, you won’t receive notifications that would otherwise alert you to something being wrong.

If fraudsters take out loans using your Social Security number under a different name, this can create a fragmented credit file. Information from the synthetic identity may not appear on your file, since the name is different, but it can still affect you.

How to protect yourself from synthetic identity theft

Like preventing any identity theft, the best way to protect yourself is to guard your Social Security number. Without this information, it is difficult to commit synthetic identity theft.

Frequently, criminals use the Social Security numbers of children, the elderly or homeless people because they typically don’t check their credit. Instead, monitor your credit profile regularly and freeze your credit report.