Protect your identity and personal information

Identity theft is when someone steals your personal information and uses it to impersonate you, steal your money, open new credit, receive medical care, hijack your government benefits or commit other acts of fraud.

Identity theft is a common crime, with some experts estimating a case of identity theft occurring every 22 seconds. The Federal Trade Commission (FTC) received more than $1 million reports of identity theft in 2023, and 2024’s numbers are expected to be higher.

There are many different types of identity theft, including:

• Financial identity theft
• Medical identity theft
• Child identity theft

Identity theft is a constant threat. While you may not be able to completely eliminate the risk that you’ll be targeted, taking preventative measures can help you protect yourself from identity theft.

Identity theft happens when someone illegally accesses and uses a victim’s sensitive information. For instance, a criminal may use stolen information to open new financial accounts, take over existing ones, obtain medical services or steal government benefits.

There are a number of different ways that identity thieves illegally access victim’s data, including:

• Data breaches: A data breach is a security event that results in unauthorized access to or disclosure of sensitive information. Data breaches may expose consumer’s personal data, such as Social Security numbers, passwords and banking information. They can also lead to widespread exposure of corporate data, exposing customer records or other sensitive company information. If your information is exposed in a data breach, criminals may seek to obtain the data and use it to commit identity theft.
• Phishing: In a phishing attack, a criminal uses social engineering tactics to trick you into providing them with sensitive information. They may then use your data to defraud you for money or impersonate you, opening new credit in your name or taking over your accounts. The best defense against phishing is to know the red flags and be very skeptical of anyone who contacts you asking you to click links or provide personal data.
• Unsecure internet browsing: Using an unsecured, public Wi-Fi can open you up to hackers, who may be able to intercept data transmitted over unencrypted networks. You should avoid logging into accounts or performing sensitive activities, such as an online banking, if you’re on a public internet connection. If you do need to browse on a public network, using a VPN can help you up your defenses.
• Malware: Malware, short for malicious software, is a term for software that’s designed to harm or steal data from victims’ devices. One type of malware is spyware, which is designed to infect and monitor devices to steal sensitive information. If your device is infected with spyware, bad actors could intercept passwords or banking information and use them to hijack your accounts or steal money from you.
• Dark web: The dark web is a hidden section of the internet associated with illegal activities, including the buying and selling of stolen personal data. Data traded on the dark web by criminals may include Social Security numbers, credit and debit card numbers, passwords, driver’s license information and phone numbers. A free dark web scan can tell you if your information appears on the dark web. If it does, taking additional steps to secure your accounts and lock your credit may be called for.
• Theft: Bad actors could steal your purse or your wallet to get their hands on your driver’s license or credit and debit cards. They can use these to impersonate you or carry out financial fraud.

To help protect yourself from identity theft, take these measures to defend your information:

• Know the signs of phishing. Your best defense against phishing is to know the red flags and refuse to comply with requests that you click links or provide sensitive information. If anyone contacts you out of the blue asking for your data, simply don’t engage. If you believe the communication may be coming from a trusted institution, contact them directly using a verified email or phone number.
• Set strong passwords. You should create long, hard-to-guess passwords that use a random mix of letters and numbers for each of your accounts, and avoid reusing passwords. A password manager can help you create and store strong passwords.
• Browse safely. If you need to browse on public Wi-Fi, consider using a VPN to access the internet securely and anonymously. It’s also a good idea to use an antivirus software to routinely scan your device for threats.
• Monitor your credit. You can sign up for free credit monitoring through Experian to stay aware of changes to your credit report and FICO Score, which can tip you off to signs of credit fraud.
• Stay up to date on scams: Learn about the latest scams you need to be aware of, including AI scams and romance scams. While scammers are always evolving their approaches in an attempt to catch their victims unsuspecting and defraud them, knowing what threats are out there can help you defend yourself.
• Protect sensitive documents. Before you dispose of mail or other documents that contain your personal data (including your full name, address and Social Security number), shred them. That helps ensure a bad actor can’t intercept and abuse your information. It’s also a good idea to enroll in paperless billing and bank account statements to cut back on papers containing your personally identifiable information.

Here are some ways you can check for identity theft:

• Check your credit reports: Review your credit reports for any signs of suspicious activity, including accounts you don’t recognize. These entries could be a sign of credit fraud. You can check your credit report for free with Experian, or through AnnualCreditReport.com.
• Look over your bank account statements: Review your debit and credit card transaction history for purchases or withdrawals you didn’t make. If you notice any suspicious activity, notify your bank right away.
• Pay attention to your mail: Look out for missing bills or bills for accounts that you don’t recognize. You should also keep an eye out for any notifications of accounts in collections, which can be a sign of credit fraud. If you receive mail for accounts you don’t recognize, reach out to sender to gather more information. Keep in mind that missing mail can also be a red flag of identity theft, as criminals who’ve gained access to your sensitive data may intercept or reroute your mail.

If you’re the victim of identity theft, take these steps to report the fraud and minimize the scope of the impact.

1. Alert affected financial institutions. Contact any institutions that you believe may be impacted by the fraud, including your bank or credit union and credit card issuer. They may be able to lock your accounts and go through your transactions with you to flag fraudulent purchases or withdrawals.
2. Review your credit reports. Closely review your three credit reports for signs of fraud. If you find information on your credit report that you don’t recognize or believe is inaccurate, you have the right to file a dispute with the bureaus.
3. Update your passwords. Secure your accounts by updating your passwords and security settings. Create a unique password for each account, and enroll in multifactor authentication (MFA) if it’s available. This adds an extra line of defense again account takeovers.
4. File a report. Report the identity theft to the FTC on IdentityTheft.gov. This allows you to create an FTC Identity Theft Report, which you can use to report the incident to other organizations as you work to contain the damage and correct fraudulent activity on your accounts. You’ll also be provided with a personalized recovery plan based on the nature of the fraud. In some cases, it may also be appropriate to file a police report.
5. Place a fraud alert. A fraud alert informs creditors that you may be the victim of identity theft and instructs them to take additional steps to confirm your identity before processing applications for credit. This can help add an extra layer of protection if you’re concerned that someone may attempt to take out credit in your name. You have the right to place a fraud alert on your credit reports for free.
6. Consider a credit freeze. You also have the right to place a security freeze on your credit. A security freeze limits access to your credit report. It can help stop fraud by preventing potential creditors from accessing your credit file. A credit freeze can be less convenient than a fraud alert, because you’ll need to unfreeze your credit when you want to apply for a credit card or loan. On the other hand, it may provide more protection than a fraud alert alone.

Identity theft can have deep and lasting financial impacts. Beyond unauthorized purchases and withdrawals from your accounts, victims could also suffer damage to their credit if identity thieves use their data to open new accounts. For example, an identity thief could open a new credit card in your name, rack up a balance and then disappear, harming your payment history.

Beyond financial hardship, identity theft can also take an emotional toll. The discovery that you’ve been a victim of identity theft—and the process that it takes to recover—can be a big strain. It may take several months to clean up the damage to your finances, further prolonging the stress.

Identity theft insurance is a type of policy that provides coverage for qualified expenses and losses incurred as a result of identity theft. Depending on your coverage, you may be able to get reimbursed for stolen funds, legal fees, lost wages, notary fees and fees from financial institutions impacted by the fraud.

Experian’s IdentityWorks Premium℠ plan includes up to $1 million in identity theft coverage. You may also be able to enroll in identity theft insurance coverage as an add-on to your home or auto insurance policy.

Identity theft protection can be a valuable way to stay alert to signs that your data is being abused by criminals. For instance, it can notify you to unauthorized activity on your credit report, or that your sensitive information has been exposed in a data breach.

Whether or not identity theft protection is worth it for you may depend on your personal circumstances. While it’s possible to monitor your credit for indications of fraud on your own, identity theft protection features offer added benefits, such as:

• Automated scans for of your personal accounts for signs of suspicious activity
• Credit monitoring and alerts to new inquiries on your credit reports from the three major bureaus (Experian, TransUnion and Equifax) to help you respond quickly to signs of fraud
• Dark web scans, which tell you if your information is being bought and sold by cybercriminals
• Privacy scans, which automatically audit and remove your information from “people finder” sites
• Identity theft insurance with coverage up to $1 million to reimburse qualified expenses due to identity theft
• Social Security number (SSN) trace alerts to notify you if your SSN appears on illegal websites

Altogether, these features can offer peace of mind against the ever-present threat of identity theft and financial fraud.