Perhaps it starts with a phone call from a debt collector, demanding payment for purchases you don’t remember making on a credit card you don’t even have. Maybe you suddenly stop receiving your bank statements and credit card bills in the mail. Or possibly you notice that your checking account is suddenly short a few hundred dollars.
If you’ve been the victim of identity theft, one of these scenarios probably sounds familiar.
Few things are as stressful as finding out that your personal information has fallen into the wrong hands. Yes, it’s bad news. There’s no escaping that.
What is Identity Theft, Exactly?
Identity theft happens when someone uses your personal or financial information without your permission. This information can include:
- Your name and address
- Credit card or Social Security numbers
- Bank account numbers
- Medical insurance account numbers
With just a few pieces of your sensitive data, thieves can drain your bank accounts, open new credit cards, or even get medical treatment in your name. The effects can range from the inconvenient to the devastating, and the damage can linger for years if not addressed quickly. But here’s the good news: There are steps you can take to keep the problem from getting worse – and to protect your finances, your credit, and your good name.
The first thing to do? Don’t panic. Take a deep breath.
And then, get down to business.
What Information Can Be Stolen in Identity Theft?
So, what kinds of personal or financial details are up for grabs when identity thieves are on the prowl? Unfortunately, quite a few. Here’s a rundown of the most commonly targeted information:
- Full name and home address
It might not seem like much, but even your basic contact information is a starting point for would-be scammers. - Credit card details
Numbers, expiration dates, and those tiny three-digit security codes—just the ticket for unauthorized shopping sprees. - Social Security number
With this nine-digit golden ticket, a thief can wreak havoc on your financial life. - Bank account information
Checking and savings account numbers can be used to drain your funds or open new accounts in your name. - Medical insurance details
Your insurance policy numbers are a prize for thieves aiming to rack up fraudulent medical bills.
In short, if it’s tied to your personal or financial identity, it’s potentially at risk.
ID Theft Damage Control: Who to Notify, What to Do Next
When dealing with identity theft, time is of the essence: The sooner you start doing damage control, the better. Here are a few things you should do right away:
- Alert the three credit bureaus. Contact each credit reporting bureau (Equifax, Experian, and TransUnion) and let them know what happened. You should also consider requesting a credit freeze and a fraud alert, two measures that will help prevent the ID thieves from, say, opening any new credit cards or taking out loans in your name.
- Alert the authorities. Remember, identity theft is a crime, which means you should definitely get local and even federal agencies involved. File a report with the Federal Trade Commission (FTC) (click here for their this super-easy online reporting tool). File a report with your local police department, too. Keep copies of all reports and forms; this will help you establish a solid paper trail in case you need proof that you were the victim ID theft.
- Check your credit card statements. If you’re like most folks, you probably don’t pay as much attention to your monthly credit card statement as you should – and that’s exactly what ID thieves are counting on. A common tactic with scammers is to make a few “test purchases” on a stolen credit card, just to see what happens. After a few successful test runs, they’ll assume that you’re not paying attention – and they’ll start making larger purchases. But how do thieves get your information in the first place? Unfortunately, they have more tricks up their sleeves than a Vegas magician. Identity thieves can swipe your info in a variety of ways:
- Snatching your wallet or purse to get at your ID, credit cards, or bank cards.
- Digging through your trash in search of bank statements, tax documents, or anything with your personal details.
- Installing skimmers at ATMs, gas pumps, or cash registers to digitally lift your bank card info.
- Eavesdropping on your devices when you use public Wi-Fi—making it all too easy for them to grab login credentials or sensitive data.
- Phishing attempts via fraudulent emails, phone calls, or texts designed to trick you into handing over personal information.
- Mining your social media accounts for identifying details in posts or even those innocent-looking online quizzes and surveys.
- Scammers are opportunists—they’ll use whatever method is easiest, whether it’s old-school dumpster diving or high-tech hacking. Staying aware of these tactics is your first line of defense.The good news is that if you’re vigilant, you can catch them in the act: Look for transactions with unfamiliar retailers, and be especially mindful of very small purchases. Contact your credit card issuer if you spot anything that looks suspicious.
- Get your credit report. If you think you’ve been the victim of identity theft, it’s critical that you closely monitor your credit report. You can get your free credit report here. Look for new credit inquiries, strange credit card accounts, or unfamiliar loans. And be sure to notify the credit bureau immediately if you suspect fraud (and if you haven’t set up a fraud alert or credit freeze, do it now)!
- Close fraudulent accounts. If a scammer did manage to open a new account or take out a loan using your information, you’ll want to close them ASAP! Contact the company or financial institution, explain what happened, and request that the account be closed or frozen until the matter is settled. The FTC has a helpful template here if you need to file the request in writing,
Be Proactive: Preventing Future ID Theft Incidents
Once you’ve taken care of the immediate threat, you can take steps to reduce your chances of being victimized a second time. Here are a few things you can do to protect yourself:
- Commit to changing your passwords regularly. Security experts recommend changing your passwords every few months. It’s easy to become complacent about this, especially if you have a lot of passwords to change – but sticking to a regular password-changing schedule can make it more difficult for would-be hackers to access your accounts.
- Be safe when shopping online. By following a few basic precautions, you can help keep your credit and debit card information from falling into the wrong hands. Avoid shopping on unsecured websites (look for URLs that start with “https,” not “http” – the “s” at the end stands for “secure”). And be careful with unsolicited emails from retailers – especially if they offer free gift cards or reference purchases you don’t remember making.
- Check card readers for skimmers. Credit card skimming involves fitting a phony card reader, fake keypad, or hidden camera over a machine with a card reader (think ATM machines, gas pumps, etc.). Skimming devices collect and store credit card information and PIN numbers, which thieves can then use or even sell to make a profit. Before swiping your card, check for any signs of skimming devices. A few red flags to watch for: parts that appear to be loose or crooked; parts that are a slightly different color than the rest of the machine; or any signs of damage around the card reader or keypad. If you have any doubts, pay inside.
- Practice safe habits on public Wi-Fi. Using public Wi-Fi at your favorite coffee shop or airport lounge might be convenient, but it can also be risky—identity thieves love unsecured networks. If you must connect, avoid accessing sensitive sites (online banking, shopping, or anything that requires a password). Turn off file sharing, use a virtual private network (VPN) if possible, and never send personal information unless you’re absolutely certain the connection is secure. When in doubt, stick to your mobile data.
- Keep a close eye on your accounts and your credit. Everyone should do this, of course – but it’s especially important for folks who have been victims of identity theft. Be extra-vigilant about reading your statements, and don’t be afraid to contact your bank or lender if you see anything that doesn’t appear to be on the up-and-up. You can always reinstate a credit freeze or fraud alert for extra protection.
- Clean out your wallet. There’s no reason to carry ALL of your credit cards with you every time you leave the house. Same goes for your Social Security card, ATM card – you get the idea. Take only what you need and leave the rest at home in a secure place.
Keep Your Mail and Important Documents Secure
- Collect your mail promptly. Unattended mail is low-hanging fruit for identity thieves. Pick it up from your mailbox daily, and if you’re planning to be away from home (hello, vacation!), ask the USPS to hold your mail or have a trusted neighbor lend a hand.
- Tuck away sensitive documents. Important papers—and especially items like your Social Security card—belong in a safe place at home, not in your wallet. Only carry essential cards and paperwork with you, and store everything else in a locking drawer, fireproof safe, or other secure spot.
Protecting Your Child from Identity Theft
We often think of identity theft as an “adult problem,” but kids can be targets too—and thieves love a clean slate. Here’s how you can help keep your child’s information safe:
- Guard their Social Security number like gold. Don’t carry your child’s Social Security card in your wallet, and only give out their SSN when it’s absolutely necessary (and you trust the organization).
- Monitor mail and pre-approved credit offers. If your child starts receiving pre-approved credit card offers, collection notices, or anything financial in their name, that’s a huge red flag. Don’t ignore it—contact the credit bureaus right away.
- Consider a child credit freeze. Most major credit bureaus (like Equifax, Experian, and TransUnion) let parents lock down their child’s credit, making it much harder for a scammer to open fraudulent accounts.
- Be cautious about sharing info at school or online. Ask how your child’s school protects personal data, and think twice before giving out identifying info for sports leagues, clubs, or apps.
- Check for a credit report. While children shouldn’t have one, sometimes they do—as a result of fraud. You can contact the major credit bureaus to see if a credit report exists for your child’s name and Social Security number.
Bottom line: staying proactive now can save your child a world of hassle—and set them up for financial health down the road. Remember, it’s never too early to start building smart habits around privacy and security.
Identity theft can happen to anyone – and there’s no such thing as being too careful when it comes to protecting your personal information. Remember, if you’ve got questions about finance – from paying down debt to rebuilding your credit score after a security incident – the friendly folks at American Credit Foundation are always here for you.