10 Things You Should Know About Identity Theft

7 Min Read | Last Updated: February 16, 2024

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Identity theft may be more common than you think. Here are 10 important things to know about identity theft, including how to prevent it and what to do if it happens.

At-A-Glance

  • Identity theft is surprisingly common: About 20% of American adults have experienced it in some form.
  • The consequences of ID theft can sometimes take years to resolve.
  • There are steps you can take to avoid identity theft – and ways to minimize the damage if it does occur.

Each day, millions of people face the threat of identity theft – a crime that can take a huge financial and emotional toll. The U.S. Department of Justice found that 9% of Americans ages 16 or older experienced identity fraud in 2021 alone, resulting in losses of $16.4 billion.1 The study also found that the vast majority of people surveyed who experienced identity theft said it caused mild to severe emotional distress.1

 

So how can you avoid having your identity stolen? Here are 10 important things you need to know about identity theft, including how to spot when it happens and what to do if it does.

1. Identity Theft Is Commonplace

Some people think identity theft won’t happen to them if they’re alert and street smart. But the truth is identity theft is everywhere, with one out of five U.S. adults having experienced some form of it.1 And it can happen to people of all ages. In 2022, the identities of more than 1 million children – most of whom were under the age of seven – were used in some type of fraud.2

2. ID Thieves Are Often a Step Ahead

Professional identity thieves spend their time and energy coming up with new ways to scam unsuspecting people, and many of these con artists are tech-savvy and well-versed in the latest technologies. Staying up to date on the latest scams can help keep you protected. The Cybersecurity and Infrastructure Security Agency (CISA) offers updates on new and rising scams that have been reported.3

3. Identity Theft Can Occur Both Online and Off

Many people consider identity theft a digital crime that takes place via the Internet. Certainly, it’s become commonplace for thieves to try and steal passwords, intercept Wi-Fi signals, or use various types of malware to gain access to personal information. But would-be imposters also use other methods to swipe personal data, many of which are comparatively low-tech. These can range from clever phone scams and snail-mail theft to old-fashioned pickpocketing and dumpster diving for personal information.4,5

4. The Consequences of Identity Theft Are Not Easy to Correct

Apart from financial losses, identity theft can damage your credit,4 cause emotional distress,1 and require extensive time and effort to resolve. More serious instances of identity theft, like having a falsified tax return filed in your name, can take much longer.6 About 10% of identity theft victims report taking a month or more to resolve financial or credit problems, according to a survey from the U.S. Department of Justice.1

5. Data Breaches Can Expose Personal Data Even if You’re Careful

Even if you take precautionary steps, ID theft can still happen if a company you do business with experiences a data breach. In 2022, 1,802 breaches were reported in the U.S., with over 422 million individuals affected by data breaches, leaks, or exposure in the same year.7 Because events like these are sometimes beyond your control, it can be helpful to sign up for credit monitoring services. Even if information is stolen, you’ll be notified and may be in a better position to mitigate some of the potential damage.

Helping to Protect Your Identity with ID Monitoring from MyCredit Guide

ID Monitoring keeps an eye on your personal information across a range of internet sites on the Surface Web, Deep Web, and Dark Web. If the service detects that your personal information such as your First Name, Last Name, Social Security Number, Date of Birth, Email Address, or Primary Address has been exposed or compromised, MyCredit Guide will alert you of the specific accounts exposed, as well as recommendations for actions you can take to help secure your data and identity. Enroll in MyCredit Guide today.

6. How to Tell Whether Your Identity’s Been Stolen

Once an ID thief has your personal information, they can use it to dip into your bank account, charge purchases to your credit cards, open new accounts, or pay for medical treatments with your health insurance.8 A thief can even file a tax return in your name and collect a fraudulent refund.9 But how can you tell that you’ve become a victim? Here are some tip-offs that your identity may have been stolen:10

  • Mysterious withdrawals were made from your bank account that you can’t readily explain.
  • You stop receiving your monthly bills or other U.S. Postal mail.
  • Debt collectors start calling you about debts that are not yours.
  • There are unfamiliar charges on your credit card, or you discover you have a new card that you didn’t apply for.
  • You start receiving bills for medical services you didn’t receive.
  • The IRS rejects your tax return because one was already filed in your name.
  • You learn about a data breach at a company you do business with.

7. Social Security Number Is Key to Protecting Your Identity

Unlike credit card numbers, Social Security numbers aren’t easily replaced.11 They’re also needed to open a new account, file a tax return, and do countless other financial transactions. This makes them invaluable to an identity thief who can steal one and then wait for months or even years before using it to pilfer a bank account or open a new line of credit. By the same token, without a Social Security number it is much harder to assume someone’s identity. You can help protect yourself by refusing to provide yours unless you’re 100% certain of who you’re giving it to and that they absolutely need it.12 Likewise, try to avoid keeping your Social Security card in your wallet or another obvious location.4,12

8. Ways to Protect Your Identity Online

Using a firewall and a virtual private network (VPN) can help keep your data secure. If you're using public Wi-Fi, make sure the websites you're using are encrypted by checking to make sure there is a lock symbol next to the web address.13

  • Antivirus software can help protect you from the various types of malware that intercept passwords and personal data.14
  • Long passwords with lots of capital letters and special characters can further protect your personal information.15 Also, it’s best practice to change passwords frequently.16
  • Don’t forget to use your mobile phone’s security features, like using a passcode to unlock the device.17
  • Use multifactor authentication if your social network or other online service offers it.15 This is when the service sends a code to a separate device through text, email, or voice message, and you use your password plus that code to log in.
Identity Theft icon

Did you know?

As an added security measure to help protect against fraud, American Express reports a reference number to credit bureaus – instead of your actual account number.

9. Ways to Protect Your Identity Offline

  • Don't share any personal information, unless you trust the person you’re giving it to.4
  • Collect your mail daily and place a hold on it when you travel.4 Shred any papers and documents that contain personal information – including sales receipts – before you dispose of them.18
  • Freeze your credit reports with the major credit bureaus, which you can do free of charge. Credit freezes can help prevent someone from applying for a new account or utility service in your name.19

10. What You Should Do if Your Identity Gets Stolen

If you think you may have become a victim of identity theft, there are several steps you can take to minimize the damage. These include:

  • File a report with the Federal Trade Commission (FTC), which compiles information about identity theft cases.20 The FBI and other law enforcement agencies use this information to track down identity thieves.
  • Contact your local police department.21
  • Notify the IRS by submitting a Form 14039 Identity Theft Affidavit if you suspect a tax return has been filed fraudulently.6 This alerts the agency that your Social Security number may have been used to submit a fraudulent tax return.
  • Review your credit card and bank statements for unauthorized charges and check your credit reports for any new accounts that have been opened in your name.4
  • Reach out to your financial institutions to determine how best to avoid further damage.21 In many cases, this will mean closing your current accounts – even ones that haven’t been compromised – and reopening new ones.

The Takeaway

Identity theft is a serious crime experienced by tens of millions of Americans. It can be difficult to avoid, and the outcome can be devastating. But there are a variety of precautions you can take to reduce your chances of becoming a victim and mitigate the damage if you do.

Headshot of Elliot Kass

Elliot Kass is a journalist who has covered global business and technology from New York, London, and San Francisco for more than 30 years.
 
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

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