Identity theft is one of the fastest growing types of fraud in the United States. But what is identity theft, exactly? In simple terms, identity theft occurs when someone steals your personal information and uses it without your permission, often for financial gain. This could include opening credit cards, taking out loans, filing fraudulent tax returns, or even using your identity for medical services.
Unfortunately, identity theft often happens quietly, and many people don’t realize it until real damage has already been done.
The good news? Knowing what to watch for is one of the best ways to protect yourself.
What Information Do Identity Thieves Want?
Identity thieves look for pieces of personal information that allow them to impersonate you. This may include:
- Social Security Number
- Bank account or credit card numbers
- Online account logins and passwords
- Date of birth
- Driver’s license number
- Health insurance information
- Email addresses or phone numbers
Sometimes thieves obtain this information through data breaches, but often they use scams designed to trick people into giving it away.
Common Ways Identify Theft Happens
Identity theft can occur in several ways, both online and offline.
Phishing Emails and Texts
Scammers may send emails or messages pretending to be from a bank, government agency, or company you trust. These messages often ask you to click a link and enter personal information.
Phone Scams
Someone may call pretending to be from tech support, the IRS, or a financial institution and ask you to “verify” personal details.
Data Breaches
Large companies sometimes experience security breaches that expose customer information.
Mail Theft
Thieves may steal mail containing financial statements, checks, or tax documents.
Weak Passwords
Using the same password for multiple accounts makes it easier for criminals to gain access to several services once one account is compromised.
Warning Signs of Identity Theft
Because identity theft can happen behind the scenes, it’s important to watch for early warning signs:
- Unfamiliar charges on your bank or credit card statements
- Bills or collection notices for accounts you didn’t open
- A sudden drop in your credit score
- Notifications that your information was part of a data breach
- Being denied credit unexpectedly
- Receiving tax notices about returns you didn’t file
If something seems unusual, don’t ignore it. Investigating early can prevent larger problems later.
How to Protect Yourself
While no one can eliminate risk entirely, a few smart habits can go a long way in protecting your identity.
Use strong, unique passwords
Avoid using the same password across multiple accounts.
Enable two-factor authentication
This adds an extra layer of security to many online accounts.
Be cautious with emails and links
Never click links or download attachments from unknown sources.
Shred sensitive documents
Destroy documents that contain personal information before throwing them away.
Monitor your accounts regularly
Check bank statements and credit reports frequently.
Be careful on public Wi-Fi
Avoid accessing sensitive accounts on unsecured networks.
What to Do if Your Identity is Stolen
If you believe your identity has been compromised, act quickly.
- Contact your bank or credit card companies immediately.
- Place a fraud alert or credit freeze with the credit bureaus.
- Report the identity theft to the Federal Trade Commission.
- Monitor your accounts closely for any unusual activity.
Taking action quickly can help limit financial damage and prevent additional fraudulent activity.
Staying Safe in a Connected World
Today, so much of our personal information exists online. While technology helps us stay connected, it’s important to stay aware of how criminals attempt to exploit that connectivity.
At NHTC, we believe that staying connected should also mean staying informed. By learning to recognize scams and protect your personal information, you can help keep your identity, and your finances, safe.
Stay tuned for more articles in our Scam Awareness 101 series, where we break down common scams and share tips to help you stay protected.