5 Identity Theft Protection Tools and Measures You Can Use

5 Identity Theft Protection Tools

There's no fool-proof way to protect all your personal information from identity theft, especially when data breaches have already leaked millions of people's personal information. But there are several tools you can use to help secure your accounts and limit access to your information.

1. Password Manager and Passkeys

Password managers can generate and securely store usernames and passwords. Some offer browser extensions and mobile or desktop apps, which you can use to quickly look up and fill in your login credentials.

Using a password manager, you can create unique passwords for your accounts without having to write down or memorize every password. Having different passwords is important because it can help keep someone who figures out one of your passwords from accessing your other accounts.

Some password managers can also create and store passkeys—an alternative and safer way to log in to online accounts that doesn't rely on passwords.

There are many password managers available, including ones with free plans. Some popular options include 1Password, Bitwarden, Dashlane and Keeper.

2. Antivirus Software

Modern computers and smartphones often come with antivirus software—all you have to do is make sure it's enabled. You could also look for third-party antivirus and antimalware software options, such as Avast, AVG, Bitdefender and Malwarebytes. Some of the options are either free or have free editions, although they may have fewer features than paid antivirus software.

3. Token-Based Multifactor Authentication

Two-factor or multifactor authentication (MFA) adds an extra layer of security to your accounts. MFA can work in different ways, such as requiring you to scan your fingerprint or enter a code sent via text message in addition to your username and password.

Enabling MFA on accounts can help keep identity thieves out—even if they know your username and password. If you get to choose, try not to use the text message MFA options as they could fail if the thief is able to take over your phone number.

Instead, opt for a token-based system. For example, free apps like Google Authenticator create time-based, one-time passcodes that you can use to log in to your account after enabling MFA.

4. Virtual Private Network (VPN)

In general, you want to avoid logging in to important accounts or entering payment details while connected to a public Wi-Fi network. Even password-protected networks could be dangerous if the password is easily accessible—such as at your local coffee shop. (Also, remember to add a password to your home network if it doesn't have one.)

If you are using public Wi-Fi, a virtual private network can create an encrypted connection between your computer or mobile device and the VPN server. The arrangement can limit the risk of someone stealing your information, but it won't protect you from every type of attack or scam.

Learn more >> Red Flags to Look for When Shopping Online

5. People Search Site Removal Tools

People search websites collect, buy and sell personal information. Your age, date of birth, address history, marital status, employment history and criminal records might be readily available online—along with similar information about your family members.

Data removal services can request that some of these sites delete your information. You might need to contact other sites directly to submit your requests. Either way, it's often an ongoing process as the sites can sometimes still add new information that they discover after your deletion request.

To see if your information appears on people search sites, you can run a free one-time privacy scan.

How Does Identity Theft Protection Work?

Identity protection services are often subscription-based programs that come with a range of credit- and identity-related tools and services. These tend to be reactive rather than the preventative tools listed above, but the early warnings they give you could help you prevent or limit the damage that identity thieves can do.

For example, the services may monitor credit reports, alternative credit databases, court records, financial accounts, social media and the dark web for your information. They can alert you if they find your information or if there are potentially suspicious changes, such as when a new name is added to your bank account or a company submits a request to verify your identity.

Some identity theft protection services also come with identity theft insurance and recovery assistance. These can help you get through—and pay for—the identity recovery process. Experian offers several paid premium membership plans that include these benefits.

How Does Identity Theft Happen?

Identity theft can happen in many ways and you might be targeted specifically, the victim of an opportunistic crime or swept up in a large criminal operation. Here are a few ways that someone could get ahold of your identifying information:

• A data breach exposes information. Hackers might steal customers' or employees' personal information from a company's databases and then use or sell it. Unfortunately, you don't have much control over if and when your information gets stolen in a data breach. According to Experian's 2024 Data Breach Industry Forecast report, there were 2,294 data breaches that affected over 68.5 million consumers in 2023 alone.
• Someone purchases stolen data. Someone might purchase information that was stolen during a data breach. They might even be able to buy a single dataset that contains organized information from multiple data breaches.
• Someone hires a criminal to target you. Someone could pay a criminal to gather your personal information, such as your address, Social Security number (SSN) and even a copy of your driver's license. The criminal might be able to quickly and easily do this using tools that are generally only available to law enforcement and other authorized organizations.
• Someone physically steals files or devices. Someone might copy or steal physical documents that have your personal information on them, such as tax forms or medical records. Or, they might steal your phone or computer and find identifying information on your device.
• A criminal hacks your device. A criminal might hack into your device or trick you into installing malware that they use to steal your personal information.
• A criminal tricks you into sharing your information. Identity thieves might trick you into sharing your personal information with them after reaching out by email, text or phone call. For example, they might use a phishing email to ask you to "confirm" your information. Or, they might create a fake ecommerce store or listings on online marketplaces to steal your credit card information.
• Your card gets skimmed. Skimming and shimming devices can steal information from your debit and credit cards when you swipe or dip your card at a compromised sales terminal or ATM. Using contactless pay or digital wallets can help protect you.

Learn more >> How to Avoid Identity Theft While Shopping Online

Types of Identity Theft and Fraud

Identity theft can refer to the theft of your personal information, and to the fraud that a criminal commits using it. Some people categorize identity fraud based on the victims' characteristics, such as when people discuss senior identity theft or child identity theft. Or, based on what the criminals do with your stolen identity.

Several common categories include:

Financial Identity Theft

This occurs when someone uses your personal information for financial gain, such as when they:

• Use your credit card without your authorization
• Open a new credit card or loan in your name
• Open a checking or savings account in your name
• Transfer money from your bank, crypto or brokerage account

Financial identity theft is one of the most common ways that criminals use stolen personal information. Although you generally aren't responsible for unauthorized accounts and transactions, recovering can be time-consuming and temporarily limit your access to credit or the stolen funds.

Medical Identity Theft

Medical identity theft is when someone uses your personal information to:

• Get a test, surgery or other medical procedure
• Purchase prescriptions or medical equipment

Medical identity theft can also happen when health care providers use your information to file fraudulent insurance claims. No matter the root cause, it can be potentially dangerous because the fraudulent procedures and purchases could get mixed into your medical history.

Learn more >> How to Avoid Medical Identity Theft

Employment Identity Theft

Someone might use your information to get a job that they wouldn't qualify for otherwise, perhaps because they have a criminal record or are undocumented and can't pass a background check. Issues can arise when the wages and withholdings are reported to the IRS and Social Security Administration under your name.

Benefits Identity Theft

When someone uses your identity to claim government benefits, such as unemployment, Supplemental Nutrition Assistance Program (SNAP) benefits, disability and Social Security benefits, it's considered benefits identity theft. Victims might have complications when filing their tax returns and could face delays if they try to file legitimate benefits claims.

Criminal Identity Theft

Someone might use your information and present fake identifying documents, such as a driver's license, while committing a different crime. The criminal activity could wind up in your record, which could lead to a bench warrant being issued for your arrest and issues when you apply for a job or apartment.

Tax Identity Theft

Someone might file a fraudulent tax return using your information. They could fraudulently claim tax credits to ensure they receive a refund and have the money deposited into an account they control or steal the refund check out of your mailbox. Tax identity theft could lead to delays when you try to file your tax return.

Learn more >> How to Keep Your Tax Refund Safe From Fraudsters

Common Signs of Identity Theft

There are many potential signs of identity theft depending on how the theft happened and how criminals are using your information. Any of the following could be a warning sign:

• New accounts or unusual activity in your credit reports
• An unexpected drop in your credit scores
• Text messages or emails with verification codes when you're not trying to access your accounts
• Unauthorized credit card or bank account transactions, including small (even 1 cent) "test" transactions
• Unexpected bills, tax forms, government benefits or medical statements
• Trouble qualifying for government benefits when you should be eligible
• Lack of mail when you're expecting letters or a package—you can use USPS Informed Delivery to get pictures of mail that's on its way
• Calls from debt collectors about bills or accounts you don't recognize
• An alert that your tax return was already filed

Learn more >> How to Check for Identity Theft

How to Protect Yourself From Identity Theft

Using the tools listed above is a good place to start to protect yourself from identity theft. But your security also depends on how you implement the tools and whether you avoid accidentally sharing sensitive information. Here are eight ways you can help protect yourself:

• Be skeptical when someone contacts you. In general, it's best to avoid sharing your SSN, account login information, credit card details and other personal information unless you initiate the conversation. Identity thieves may be masters at manipulating victims and making text messages, emails or phone calls look legitimate. But real company representatives and government officials usually won't mind if you want to hang up and call them back as a safety measure.
• Limit what you share online. Be careful of what you share online—and suggest your family members do the same. Try to delete old accounts and review your social media accounts' privacy settings to make sure you're not inadvertently sharing sensitive information, such as your birthday, with everyone. Also, limit who can see your social media posts and be careful about who you add as a "friend."
• Keep your devices and software updated. There's a back-and-forth battle as hackers discover new software vulnerabilities and companies release updates to fix them. If you don't keep your software up to date, including your operating system and antivirus software, you may be more susceptible to security exploits.
• Auto-lock your devices. Set your phone, laptop and other devices to automatically lock when you're not using them. Otherwise, someone may be able to quickly steal your information or install malware on a device you leave unattended. Auto-locking can also help protect your data if your device is lost or stolen.
• Freeze or lock your credit reports. You have the right to add fraud alerts and freeze your credit reports from all three major credit bureaus—Experian, TransUnion and Equifax—for free. A fraud alert asks creditors to take extra measures to verify your identity, while a credit freeze keeps them from accessing your credit reports when a new credit application is submitted.
• Shred documents that have personal information. Criminals might steal mail looking for personal information that they can use to commit identity fraud. Shredding your documents—and other items with personal information—before throwing them out can thwart these attempts.
• Ignore requests involving unusual payment types. If a person or company demands that you pay them using a gift card, cryptocurrency, wire transfer or P2P app, that could be a red flag that you're speaking with an identity thief or scammer.
• Request an IRS Identity Protection PIN. You can apply for an IRS Identity Protection PIN (IP PIN) online for free. You'll need the IP PIN to file your tax return, which can help keep someone else from filing a tax return in your name.
• Check to see if your information is on the dark web. You can get a free dark web scan from Experian that allows you to see if your personal information appears on the dark web.

Learn more >> 11 Ways to Protect Yourself From Identity Theft

How to Report Identity Theft

Reporting identity theft can be important for restoring your identity and getting reimbursed for fraudulent transactions. It can also help law enforcement prosecute identity thieves, understand trends in scams and fraud and protect people from identity fraud.

Here are three steps you can take to report the theft if someone uses your identity:

1. Contact the Relevant Organizations

Reach out to organizations based on the type of identity theft to report that you're the victim of fraud and start resolving the issue. These may include:

• Credit card issuers, lenders, banks, credit unions and other financial institutions
• Employers
• Medical and insurance providers
• State or federal agencies, such as your state's unemployment benefits administrator, the USPS or the IRS

You can also review your credit reports from all three credit bureaus, and you have the right to dispute fraudulent accounts or information resulting from the fraudulent activity.

Learn more >> How to Check Your Credit Report and File Disputes

2. File an Identity Theft Report With the Federal Trade Commission (FTC)

Visit the FTC's IdentityTheft.gov website to report the identity theft and get a detailed and customized recovery plan. The FTC can also create an FTC Identity Theft Report that you can use when reporting the theft and fraud to other organizations.

3. File a Police Report With Your Local Department

You may want to file a police report with your local police department. Sometimes, the police can catch the identity thieves. Additionally, you also might want a copy of the police report to help prove that you're the victim of identity theft. For example, you can use it to request an extended fraud alert on your credit reports.

Learn more >> Steps to Take After Identity Theft

Stay Vigilant and Aware

Criminals are always looking for new ways to steal your personal information and use it to commit fraud. Keeping your documents, devices and accounts secure can help protect you from targeted and opportunistic identity theft attempts. But even the best defenses can only go so far, especially when data breaches have already exposed many people's personal information.

Monitoring your credit, accounts and other databases for signs of fraud is important for catching identity fraud early and limiting the damage. Recovering from identity theft can still be a trying process. But some identity theft protection services include identity theft insurance and assistance from recovery specialists as benefits.