What To Know About Identity Theft

What Is Identity Theft?

Identity theft is when someone uses your personal or financial information without your permission.

They might steal your name and address, credit card or bank account numbers, Social Security number, or medical insurance account numbers. And they could use them to

• buy things with your credit cards
• get new credit cards in your name
• open a phone, electricity, or gas account in your name
• steal your tax refund
• get a job
• get medical care
• pretend to be you if they’re arrested

How To Know if Someone Stole Your Identity

It pays to know how to tell if someone stole your identity. Here’s how to tell if identity theft has already happened:

• Track what bills you owe and when they’re due. If you stop getting a bill, that could be a sign that someone changed your billing address and may be misusing your information as an identity thief.
• Review your bills. Charges for things you didn’t buy could be a sign of identity theft. So could a new bill you didn’t expect.
• Check your bank account statement. Withdrawals you didn’t make could be a sign of identity theft.
• Get and review your credit reports. Accounts in your name that you don’t recognize could be a sign of identity theft. Here’s how to get your free credit reports.

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How To Protect Yourself Against Identity Theft

Here are some steps to take to help protect your personal information and avoid identity theft.

Place a credit freeze on your credit reports

A credit freeze keeps people from getting into to your report. While a freeze is in place, nobody can open a new credit account. They’re free to place and lift. To place one, contact each of the three credit bureaus: Experian, TransUnion, and Equifax.

Place a fraud alert on your credit reports

Even if you already have a credit freeze in place, you may also place an initial fraud alert if you suspect fraud. An initial fraud alert tells businesses to check with you before opening a new account in your name. Usually, that means contacting you first to make sure the person trying to open a new account is really you. To place a free, one-year fraud alert, contact one of the three credit bureaus. That company must tell the other two about the alert.

Protect documents that have personal information

Keep your financial records, Social Security and Medicare cards, and any other documents that have personal or financial information in a safe place. When you decide to get rid of them, shred them before you throw them away. If you don’t have a shredder, look for a local shred day in your community, or use a marker to block out account numbers.

If you get statements with personal information in the mail, take your mail out of the mailbox as soon as possible.

Ask questions before you give out your Social Security number

Some organizations need your Social Security number to identify you — like the IRS, your bank, and your employer. But those organizations won’t call, email, or text you to ask for it. If they do, it’s a scammer.

Other organizations that might ask you for your Social Security number might not really need it. For example, a medical provider, a company you’re doing business with, or your child’s school. Ask these questions before you give them your Social Security number:

• Why do you need it?
• How will you protect it?
• Can you use a different identifier?
• Can you use just the last four digits of my Social Security number?

If you're not satisfied with their answers, don't share your Social Security number.

Protect your information from scammers online and on your phone

• If you’re logging in to an online account, use a strong password.
• Add two-factor authentication for accounts that offer it. Two-factor authentication offers extra security by requiring two or more credentials to log in to your account. The credentials you need to log in to your account fall into three categories:
  • something you know — like a password, a PIN, or the answer to a security question
  • something you have — like a one-time passcode you get by text message, email, or an authenticator app
  • something you are — like a scan of your fingerprint, your retina, or your face

Multi-factor authentication makes it harder for scammers to log in to your accounts if they do get your username and password.

• Don’t give your personal information to someone who calls, emails, or texts you. It could be a scammer trying to steal your information.

Monitoring Services, Recovery Services, and Identity Theft Insurance

There are also services you might use to protect your identity, including credit monitoring, identity monitoring, identity recovery services, and identity theft insurance. You might pay a company for one or get them through your bank or credit union, credit card provider, employer’s benefits program, or insurance company.

Credit monitoring services

Credit monitoring services keep an eye on your credit report and let you know if anything suspicious pops up. These services usually charge a monthly or annual fee. They might monitor activity at one, two, or all three of the major credit bureaus — Equifax, Experian, and TransUnion.

Credit monitoring services will usually let you know when

• a company checks your credit history
• a new loan or credit card account appears on your credit reports
• a creditor or debt collector says your payment is late
• public records show that you filed for bankruptcy
• someone files a lawsuit against you
• your credit limit changes
• your personal information, like your name, address, or phone number changes

Credit monitoring services won’t alert you when

• someone withdraws money from your bank account
• someone uses your Social Security number to file a tax return and collect your refund

If you’re thinking about using a credit monitoring service, here are some questions to ask them:

• How often do you check credit reports for changes?
• Which of the three credit bureaus do you monitor?
• Is there a limit to how often I can review my credit reports?
• Will I be charged each time I review my credit reports?
• Are other services included, like access to my credit score?

Before you consider paying for these services, remember that you can monitor your credit by getting your free credit reports.

Identity monitoring services

Companies that offer identity monitoring services check databases that collect different types of information to see if they contain new or inaccurate information about you — including things that might not show up on your credit report. Those could be a sign that someone is using your personal information.

Identity monitoring services may tell you when your information shows up in

• a change of address request
• court or arrest records
• orders for new utility, cable, or wireless services
• an application for a payday loan
• a request to cash a check
• on social media
• on websites that identity thieves use to trade stolen information

Most identity monitoring services won’t alert you if someone uses your information to

• file a tax return and collect your refund
• get Medicare benefits
• get Medicaid benefits
• get welfare benefits
• claim Social Security benefits
• claim unemployment benefits

Identity recovery services

Companies that sell credit and identity monitoring services also might offer identity recovery services to help you fix any damage from identity theft. These services may be included or cost extra. You might be able to do some of the services they offer on your own for little or no cost.

Identity recovery services typically give you access to counselors or case managers who will help you recover your identity. They might

• help you write letters to creditors and debt collectors
• place a freeze on your credit report to prevent an identity thief from opening new accounts in your name
• guide you through documents you have to review

Some services will deal with creditors or other institutions for you if you formally grant them authority to act on your behalf.

Identity theft insurance

Companies that sell monitoring services also may offer identity theft insurance. These services may be included or cost extra.

Identity theft insurance may cover

• out-of-pocket expenses directly associated with reclaiming your identity, like
  • the cost of copying documents
  • postage costs for sending documents
  • costs for getting documents notarized
• wages you lost
• legal fees you paid

Identity theft insurance generally won’t reimburse you for money scammers stole or financial loss from the theft. Most policies won’t pay if your loss is covered by your homeowner’s or renter’s insurance. If you’re considering getting identity theft insurance, ask about the deductible and find out what’s covered and what isn’t.

How To Report Identity Theft and Get Help

If you think someone stole your identity, report it to the Federal Trade Commission. You’ll get a free personal recovery plan with next steps.

• To report in English, go to IdentityTheft.gov
• To report in Spanish, go to RobodeIdentidad.gov
• If you’re more comfortable reporting in another language, call 877-438-4338 and press 3 to report in your preferred language. Interpreters are available from 9:00am – 5:00pm ET.

IdentityTheft.gov offers detailed advice to help you fix problems caused by identity theft, along with the ability to

• get a personal recovery plan that walks you through each step
• update your plan and track your progress
• print pre-filled letters and forms to send to credit bureaus, businesses, and debt collectors

There’s advice for more than 30 types of identity theft. You’ll also learn what to do if your information was lost or exposed in a data breach.