Preventing Identity Theft and What to Do if You Become the Next Victim of Identity Thieves
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Preventing Identity Theft and What to Do if You Become the Next Victim of Identity Thieves

Identity theft is a common and serious crime, but you can protect yourself and your future with proven prevention strategies

August 10, 2025

Identity theft continues to be one of the most frequent and damaging forms of fraud, affecting millions of people each year. Once identity thieves gain access to your personal information, they can drain your bank accounts, rack up unauthorized charges, open credit lines in your name, obtain medical services using your health insurance, or even file fraudulent tax returns to steal your refund. In extreme cases, an identity thief might use your identity when arrested, creating a criminal record that can be difficult to clear.

Preventing identity theft requires a combination of awareness, safe habits, and monitoring your financial and personal records. Knowing how thieves obtain your information is the first step toward reducing your risk.

How identity thieves get your information

  • Rummaging through trash or dumpsters for bills, bank statements, or medical records containing sensitive details.
  • Stealing data from within a business, medical office, or government agency by employees with inside access.
  • Impersonating a legitimate business through calls, emails, or text messages to trick you into revealing personal information (phishing or smishing).
  • Offering fake jobs, loans, or rental properties that require you to submit Social Security numbers or bank account information.
  • Stealing physical items like wallets, purses, backpacks, or incoming mail to access credit cards, driver’s licenses, passports, or health insurance cards.
  • Hacking into unsecured email accounts, cloud storage, or public Wi-Fi sessions to capture login credentials and personal data.
  • Skimming debit or credit card information from compromised ATMs or payment terminals.

Protect your information

  • Review your credit reports regularly. You are entitled to one free credit report every 12 months from each of the three nationwide credit reporting companies.
  • Check your bank, credit card, and loan statements promptly each month, and read all explanation-of-benefits statements from your health plan. Investigate any unfamiliar charges or services immediately.
  • Shred documents containing personal, financial, or medical information before discarding them.
  • Do not respond to unsolicited calls, emails, or text messages requesting personal information. Legitimate businesses do not ask for account details this way.
  • Create strong passwords using a mix of letters, numbers, and symbols. Avoid using the same password across multiple accounts. Consider a reputable password manager.
  • Only shop or bank on encrypted websites. Look for “https” at the beginning of the web address, where the “s” stands for secure.
  • Avoid sending sensitive information over public Wi-Fi unless you are using a secure VPN (virtual private network).
  • Install reputable anti-virus and anti-spyware software, and keep your firewall enabled.
  • Set your operating system, browser, and security software to update automatically to patch vulnerabilities quickly.
  • Enable multi-factor authentication for financial, email, and cloud accounts whenever possible.

Red flags of possible identity theft

  • Unfamiliar charges or withdrawals on bank or credit card statements.
  • Errors in the explanation of medical benefits from your health plan.
  • Missing bills, account statements, or other expected mail.
  • Bills or collection notices for goods or services you never received.
  • Debt collection calls about accounts you never opened.
  • A notice from the IRS that your Social Security number was used for a tax return you did not file.
  • Credit inquiries, job offers, or benefits claims in your minor child’s name.
  • Unexpected declines of checks or payments when you have sufficient funds.
  • Unexplained denials for loans, credit, or employment opportunities.

What to do if you become a victim

Act quickly to limit damage and begin recovery. Start by placing a fraud alert on your credit report. Contact any one of the three nationwide credit reporting companies; the one you notify is required to inform the other two. An initial fraud alert lasts 90 days and makes it harder for identity thieves to open new accounts in your name.

Equifax: (800) 525-6285
Experian: (888) 397-3742
TransUnion: (800) 680-7289

Request credit reports from each bureau and review them carefully. Dispute any inaccurate information right away. If you find fraudulent accounts or transactions, contact the credit reporting agency and the business where the fraud occurred.

An Identity Theft Report gives you stronger rights to remove fraudulent information, stop collection efforts on fraudulent debts, and obtain details about accounts opened by thieves. It combines two documents: an FTC Identity Theft Affidavit and a police report.

How to create an Identity Theft Report

  • File a complaint with the Federal Trade Commission. Completing the online form will generate your FTC Affidavit.
  • Take the FTC Affidavit to your local police department, or to the police where the theft occurred, and file a police report. Clearly explain that you are reporting identity theft.
  • Request a copy of the police report. Keep it with your FTC Affidavit.
  • Use your Identity Theft Report when disputing fraudulent accounts, blocking the reporting of fraudulent debts, or dealing with collection agencies.

Additional recovery steps

  • Consider placing a security freeze on your credit file with all three major credit bureaus. This prevents new creditors from accessing your credit report without your consent.
  • Contact your financial institutions to close or freeze affected accounts and open new ones with fresh account numbers, PINs, and passwords.
  • Change login credentials for all online accounts, especially email and financial accounts.
  • Notify your health insurance provider if your medical identity may have been used fraudulently.
  • Check your tax records to ensure no false filings have been made in your name.
  • Continue to monitor your credit reports and account statements for at least one year after the incident.

By combining preventive steps with a rapid response plan, you can greatly reduce your risk of identity theft and minimize the damage if it does occur. Staying alert to warning signs and safeguarding your personal data is essential in an era where cyber and physical theft are both constant threats.