Before you learn how to prevent identity theft, it helps to know what you’re up against. Identity theft occurs when someone steals your personal or financial information and uses it to gain access to your accounts, open new ones, make purchases or perform other actions in your name.
It presents a major online threat, with one person falling victim to identity theft every 22 seconds in the United States, according to our ID fraud statistics. What’s worse, stats show that a quarter of identity theft victims will have their identities stolen again.
We wrote this article to help protect you from having your identity stolen and to provide support to those who have already fallen prey to an identity thief. Read on to discover 15 different ways you can protect your identity online and learn the main factors that lead to identity theft.
Learn more about our editorial team and our research process.
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10/21/2021
Added extra tips, FAQs, screenshots, meta description, secondary description and key takeaways.
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05/07/2024 Facts checked
Expanded to include more information on the different identity theft types, common ID fraud scams and ways fraudsters can get to your personal data.
Common Types of Identity Theft
Around 1.4 million Americans experienced identity theft in some form in 2023, with 27% reporting they experienced ID theft multiple times. High-profile cases like the Equifax data breach in 2017, which exposed the personal and financial information of over 147 million Americans, highlight the need for individuals to be proactive in protecting their identities.
Recognizing the different types of identity theft is the first step toward protecting yourself from them. Here are the seven most common types of identity fraud.
15 Ways to Prevent Identity Theft
Now that we’re all familiar with what ID theft is and what forms it can take, we can move on to protection measures. It’s important to have identity theft protection, so here are 15 ways to avoid identity theft exposure:
How Identity Theft Happens
Identity theft can occur in various ways, and understanding these methods can help you take the necessary steps to prevent it. Here are some common ways identity thieves gain access to your personal information, followed by bullet points on how to foil them:
How to Check If Someone Is Using Your Identity?
Detecting identity theft can help minimize the damage and ease the resolution process. Here are some ways to check if someone is using your identity for free:
- You receive notifications for unexplained charges on your banking app.
- You receive debt collection notices for accounts you didn’t open.
- You experience issues when attempting to file a tax return, such as rejection or an unexpected tax bill.
- You’re denied credit, loans or benefits due to a credit score or history that is worse than expected.
- You receive medical bills for services you did not receive.
- You receive unsolicited credit card or loan offers in your name or your child’s name.
- You spot unusual or unfamiliar activity on your existing financial accounts.
What to Do If You Suspect You’re a Victim of Identity Theft?
If you suspect that your identity has been stolen, it’s crucial to act quickly to mitigate the damage. Here are the first steps you should take:
- Contact the three major credit bureaus: Notify Equifax, Experian and TransUnion that you’ve been the victim of identity theft, request a credit report and ask them to place a fraud alert on your credit file.
- Report identity theft with the Federal Trade Commission: Report the fraud to the FTC by visiting IdentityTheft.gov or calling 1-877-438-4338. The FTC can provide you with a personalized recovery plan and guide you through the rest of the process.
- Contact your financial institutions: Inform your bank, credit card companies and any other financial institutions you use about the identity fraud. Request that they close any fraudulent accounts as well as issue new cards and account numbers for your existing accounts.
- Notify relevant agencies: If the identity theft involves tax-related fraud, report it to the Internal Revenue Service (IRS) by submitting a form or calling 1-800-908-4490.
- Dispute all unauthorized charges and get false accounts closed: Work with credit bureaus and other financial institutions to dispute and reverse all fraudulent charges, accounts or account changes. Be sure to get all fraudulent activity removed from your credit reports and records as well.
- Consider filing a police report: Depending on the severity of the situation, you might need to file a police report. Although it’s unlikely that local law enforcement (or any government agency) can help resolve the case and put the scammer behind bars, contacting them will establish a paper trail that can help with financial disputes.
- Monitor all your financial accounts: Keep monitoring your accounts for any further unauthorized activity and dispute all of it as soon as it happens.
- Consider a credit freeze: Freezing your credit can help prevent identity thieves from opening new accounts in your name.
Final Thoughts
Identity theft can be a scary thing to think about, but it’s difficult to avoid if you don’t face up to the problem. By following the strategies in our guide, you can make strides toward protecting yourself from ID theft. Knowing the different types of identity fraud and their warning signs can significantly reduce your risk of getting your identity stolen.
Remember to stay vigilant, monitor your payment and banking accounts closely, and report suspicious activity immediately. What are your thoughts on our guide? Have you ever been a victim of ID theft? How did you deal with it and what was the outcome? Please let us know in the comments below, and as always, thank you for reading.
FAQ: Identity Theft Protection
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- Monitor your credit reports; you are entitled to free annual credit reports with the major credit card companies.
- Keep tabs on your payment accounts.
- Use VPNs, password managers, antiviruses and other online security software.
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- Avoid oversharing on social media.
- Do not click on links in emails from untrusted sources.
- Properly dispose of sensitive documents.
- Use unique, strong passwords for every account.
- Report signs of identity theft to the relevant institutions.
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If you see anomalous activity on your banking accounts, get strange bills or see worsened credit scores, it’s a strong indicator that you’ve had your identity stolen.
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The best way to resolve identity theft is to report it to the FTC. Once you report the ID theft to them, they can help you by providing the next steps to take and guiding you through them.
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The deceased person cannot monitor their own accounts, and you are unlikely to have full access at all times. The best thing you can do is transfer all of their money, as well as their physical and liquid property, over to yourself and other inheritors as quickly as possible.
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