Identity theft: warning signs and what to do
In short: identity theft is when someone uses your personal details, such as your Social Security number or card numbers, to open accounts, borrow or spend in your name. If you see signs, act quickly: contact the companies involved, freeze your credit with the three bureaus, and make a recovery plan at IdentityTheft.gov. Freezes are free.
Warning signs
- Charges or withdrawals you don't recognize.
- Bills, cards or debt collection calls for accounts you never opened.
- Accounts or hard inquiries you don't recognize on your credit report.
- Your mail or a bill stops arriving, or you're told you've already applied for something.
What to do straight away
- Call the companies where the fraud happened. Ask them to close or freeze the accounts and change your passwords and PINs.
- Place a free credit freeze with Equifax, Experian and TransUnion. A freeze stops most new lenders from seeing your report, so new accounts are hard to open in your name.
- Or place a fraud alert: you only need to contact one bureau, and it tells the others. Lenders should then take extra steps to check it is really you.
- Report it at IdentityTheft.gov, the FTC's official site. It gives you a personal recovery plan and a report you can use with companies.
- Check your credit reports for free at AnnualCreditReport.com and dispute anything that isn't yours.
Freeze or fraud alert?
| Credit freeze | Fraud alert | |
|---|---|---|
| What it does | Blocks most access to your report | Asks lenders to verify your identity |
| Cost | Free | Free |
| How to place it | With each of the three bureaus | With one bureau, which tells the others |
| When you apply for credit | Lift it for a while first | No need to lift it |
Protecting yourself
- Only give your Social Security number when it is really needed, and ask why.
- Never share one-time codes, PINs or passwords with anyone who contacts you, even if they say they are your bank.
- Use strong, different passwords and turn on two-step sign-in for bank and email accounts.
- Shred papers with personal details, and collect your mail promptly.
- Check your accounts regularly; many banks offer free alerts.
Being tricked into sending money is a scam rather than identity theft, but the first step is the same: contact your bank straight away. See Money scams that target newcomers.
Handy tools
- Monthly budget planner: see what is left each month and how your spending splits up.
General information, not financial advice. Rules, fees and rates change and depend on your situation. Check with your bank, the provider or a qualified professional before you decide.
Sources
- FTC: IdentityTheft.gov
- CFPB: What do I do if I am a victim of identity theft?
- CFPB: How can I spot identity theft?
- CFPB: What is a credit freeze or security freeze?
- AnnualCreditReport.com: Free credit reports (official site)