Learn what identity theft is, how to tell if someone’s stolen your personal information, and some surprising facts you might not know.
Identity theft is more common than you think.
Scams are designed to either steal your money or your identity to steal your money later. Scammers have all kinds of techniques to collect personally identifiable information (PII). Once they have it, they can become you, using your identity to open accounts, file taxes, or obtain medical coverage.
How identity theft scams work:
How do people steal your identity? With enough personal information, a scammer can pretend to be you and commit many crimes. They can make false applications for loans and credit cards, withdraw money from your bank account, or obtain services in your name. They can also sell your information to others on the Internet.
Identity theft may take a long time to detect. Scammers ensure that bills and statements for new accounts are not sent to your address. You may notice what is happening once the scammer has already inflicted substantial damage on your assets, credit, and reputation. Consumers should also be aware of synthetic identity theft, where a scammer combines real and fake information to create a brand-new, fictitious identity. Fraudsters often use stolen Social Security or Social Insurance numbers, paired with fake names, dates of birth, and addresses, to commit this type of crime. Learn more about synthetic identity theft.
In the U.S., visit identitytheft.gov for information on how to stop and recover from identity theft.
In Canada, the Anti-Fraud Centre has information on identity theft.
Tips to spot identity theft:
- Look for unexplained withdrawals, charges, and accounts. Review your bank account and credit card statements regularly. Look for unfamiliar charges, accounts, or withdrawals. Know when your bills are due; one tip-off for identity theft is when you stop receiving certain bills. This can happen because scammers have changed the address associated with your bank account or credit card. If bills don’t arrive on time, follow up with your creditors. Debt collectors may call you about debts that aren’t yours. You can also set up automatic alerts on your accounts so you are notified every time a transaction is made.
- Check your credit reports regularly for unauthorized inquiries and accounts. In the U.S., you can check your credit report with each of the three major credit bureaus once per year at AnnualCreditReport.com. This is the only free crediting reporting service authorized by the Federal Trade Commission. Space these checks out throughout the year, and you will quickly know if something is wrong. In Canada, the Financial Consumer Agency of Canada provides information on requesting a free credit report.
Ways to protect yourself against this scam:
Protect yourself against hackers:
Strengthen your passwords.
- Use strong passwords or passphrases. Avoid using your birth date, child’s name or birth date, mother’s maiden name, the last four digits of your Social Security number or Social Insurance number, or really obvious ones like “123456” or “password.”
- Change your passwords frequently
- Use different passwords for each online account or website
Enable multi-factor authentication (MFA).
- Add an extra layer of protection to your accounts by requiring a second form of verification, like a text message code or authenticator app.
Be cautious with emails and links.
- Avoid clicking on suspicious links or downloading attachments from unknown senders.
- Watch for phishing attempts, such as fake emails claiming to be from banks, retailers, or government agencies.
Limit personal information online.
- Be careful about the types of information you share online, especially if it is information that could be used to get past security questions on your accounts (things like your first car, first pet’s name, city where you were born).
Protect personally identifiable information.
- Shred outdated documents with personal information. While you should keep your tax returns forever, you should shred supporting documents for your tax returns after seven years. After one year, shred bank statements, pay stubs, and medical bills (unless you have an unresolved insurance dispute). Shred utility bills a month after they had been paid.
Learn more about identity theft
If a company you do business with has experienced a data breach, BBB has information on what to do after a data breach and how to avoid synthetic identity theft. Also, see how to protect your identity from a data breach.
To report a scam, go to BBB Scam Tracker.
To learn more about how to protect yourself, go to “10 Steps to Avoid Scams.
