Has someone stolen your identity and run up debt in your name? Are collectors calling for loans you never took out? As a cybersecurity expert who has spent over a decade securing cloud data, I know identity theft can seem like a nightmare.
But you have more power than you realize to spot fraud and stop it in its tracks. The key is knowing where to check and what to look for.
In this comprehensive guide, I‘ll explain:
- How to monitor your information to detect identity theft
- Common signs your identity has been misused
- What criminals actually do when they steal identities
- Steps to report identity theft and restore your good name
- Tips to continue guarding your identity from future abuse
Let‘s dive in so you can protect your name and finances.
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Diligently Check These Areas to Catch Identity Theft
Identity thieves are tricky and patient. They know you likely aren‘t monitoring every single piece of your financial life. That‘s why you have to be proactive and meticulous to spot the warning signs.
Based on over 10 years handling data security incidents, here are all the places I recommend you regularly check for fraudulent activity:
Review Credit Reports from All 3 Bureaus
Checking your credit reports is one of the quickest ways to detect identity theft. If someone is opening new accounts in your name, it will show up here.
You can access your credit reports for free at AnnualCreditReport.com. Due to COVID-19, you can currently get weekly reports rather than just annually. I advise checking your credit from all three bureaus (Experian, Equifax, TransUnion) every four months.
Look for:
- New accounts you don‘t recognize
- Late payments you didn‘t make
- Inquiries from lenders you didn‘t contact
- Address changes you didn‘t authorize
According to the FTC, 26% of identity theft victims find out about the crime by checking their credit reports. So don‘t skip this important step!
Monitor Bank and Credit Card Statements
Log into your bank and credit card accounts frequently to review transactions. Watch for:
- Purchases you didn‘t make
- Cash withdrawals you didn‘t take out
- Checks showing signatures that are not yours
Checking your statements helps you catch unauthorized charges quickly before they add up. The sooner you report fraud, the less hassle you‘ll have correcting it.
Keep Track of Expected Bills
I recommend keeping a list of regular monthly bills like utilities, subscriptions, loans, insurance, etc. Note when each bill typically arrives.
If a bill you normally receive doesn‘t show up, it could be because an identity thief changed your address. Follow up immediately on any missing bills to prevent bigger issues.
Beware of Tax Notification Letters
Tax identity theft happens when someone files a fake return using your Social Security number to claim a refund. The IRS may send you letters about:
- More than one tax return filed in your name
- Income from an employer you don‘t know
- Unpaid taxes or penalties on unreported income
Respond right away if you get any unusual tax notices. According to the IRS, around 9 million Americans experience tax ID fraud each year.
Verify Medical Records and Bills
Medical identity theft is another common problem. A scammer uses your information to get treatment or prescription drugs.
Carefully review any EOB statements and medical bills for items you didn‘t receive. Also check directly with your doctor and pharmacy to confirm your medical history is accurate.
Search Public Records for Fraud
Do quick Google searches to see if your name shows up associated with unfamiliar addresses, properties, businesses, licenses, or other public records.
Criminals can use stolen personal data to open fraudulent accounts. It‘s smart to check what‘s out there.
Monitor Your Social Security Account
On your mySocialSecurity online account, you can view your lifetime Social Security earnings record. Make sure all jobs and incomes listed actually belong to you.
Identity thieves may use your SSN to work, which can reduce your future benefits if undetected. The SSA received over 724,000 reports of SSN misuse in 2020 alone.
Check Your Child‘s Credit Too
Child identity theft is becoming more common but often goes unnoticed. If you have kids under 18, request their credit reports annually to make sure no accounts have been opened in their names.
This FTC article has details on protecting your child from this rising threat.
Watch for These Common Signs of ID Theft
Even if you monitor your information regularly, identity thieves can still slip through the cracks. Be alert for any of these red flags:
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You are denied credit unexpectedly.
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Debt collectors contact you for debts that aren‘t yours.
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Your health plan rejects your benefits due to reached limits you didn‘t hit.
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You don‘t get your regular utility bills and statements.
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Your mail is missing or stolen.
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Unknown social media or email accounts are registered to you.
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You see charges for items or services you didn‘t purchase.
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The IRS says multiple tax returns were filed in your name.
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Medical providers have inaccurate records of your treatment history.
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You find unfamiliar names of property or businesses linked to your address.
The sooner you notice anything suspicious, the quicker you can address it. Don‘t ignore the warning signs!
How Identity Thieves Operate to Steal Your Information
Before I explain how to fix identity theft, let me briefly explain how it happens in the first place. This will help you better understand the threat.
From what I‘ve seen investigating security breaches, identity thieves employ a variety of tactics:
Stealing Personal Items – They rifle through trash, break into homes and cars, or pickpocket purses and wallets hunting for IDs, account details, Social Security cards, etc.
Hacking Accounts – They send phishing emails and texts to trick you into revealing login info. They exploit vulnerabilities to break into online accounts and databases.
Insider Theft – Dishonest employees misuse the sensitive customer data they have access to at work.
Public Records Abuse – They gather bits of your info from public records, social media, genealogy sites, etc.
Buying Stolen Identities – They purchase identity data stolen via corporate breaches on black market sites.
Social Engineering – They call pretending to be from the IRS, your bank, etc. and manipulate you into giving personal details.
Once identity thieves have your information, here are some of the common ways they exploit it:
- Open new credit cards and loans in your name
- Make purchases online, in-store, and over the phone
- Access and drain your bank accounts
- Steal your tax refund
- Get medical treatment posing as you
- Commit crimes and provide your identifying details if arrested
- Rent apartments or obtain utility services in your name
- Sell your identity data to other criminals
This is why watching all your accounts, statements, and records is so essential. Identity thieves can strike in many different ways.
Report Identity Theft Right Away
If you discover you are the victim of identity theft, taking prompt action is critical to limit the fallout. Here are the main reporting steps:
Contact the FTC‘s IdentityTheft.gov
This FTC site makes it easy to report identity theft and get a personal recovery plan. You‘ll also be able to file complaints across multiple agencies.
Place Fraud Alerts
Request fraud alerts from Equifax, Experian, and TransUnion. This requires verifying your ID when new credit is requested in your name. Alerts last 1 year and can be renewed.
Those with an identity theft report can get extended 7 year fraud alerts for extra protection.
Freeze Your Credit
Freezing your credit restricts access to your credit reports and stops new accounts from being opened. It‘s your best defense once identity theft is confirmed. Freezes can easily be lifted temporarily when you want to apply for credit.
File a Police Report
Submit an official report to law enforcement regarding the identity theft. The report can help you recover stolen funds and fix fraudulent accounts. Many credit card companies and banks require a copy of the report to dispute charges.
Report Issues to the IRS
If someone misused your information for tax or employment fraud, report it to the IRS. Provide proof of identity theft by submitting IRS Form 14039. They can help resolve related tax problems.
Work With Affected Institutions
Contact every company affected by the identity theft. Ask them to close or freeze compromised accounts. Change your logins, passwords, security questions, and PINs to re-secure the accounts.
Review Health Records
Request copies of your medical records from healthcare providers and insurance companies. Look for any inaccurate information indicating medical identity theft. Have mistakes fixed to prevent billing issues or inappropriate care.
Check Children‘s Credit
If you have kids under 18 who may be identity theft victims, request their credit reports. Contact credit bureaus to remove any fraudulent accounts opened in their name and prevent additional damage.
Helpful Tips for Continued Protection
Recovering from identity theft takes time and effort. But there are steps you can take to prevent it from happening again:
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Monitor your credit reports and scores – Keep checking your credit regularly from Equifax, Experian, and TransUnion even after the immediate crisis passes. Many victims enroll in credit monitoring services for ongoing alerts of suspicious activity.
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Review statements closely – Carefully scrutinize every credit card, bank, and utility statement when it arrives. Look for any transaction you don‘t recognize.
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Change account details – Update your logins, passwords, PINs, and security question answers for all financial accounts. Avoid using easily guessed information.
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Place a security freeze – Locking down your credit reports requires verifying your identity to open new accounts. It‘s a reliable way to prevent criminals from abusing your credit. You can lift the freeze when needed.
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Limit share of personal information – Be selective about who receives your Social Security number, date of birth, address, and other identifying details. Sharing sparingly makes identity theft harder.
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Check your child‘s credit – Child ID theft is growing as much of their info is unused and prime for takeover. Routinely check your kid‘s credit through age 18 and teach them smart data habits.
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Consider identity theft insurance – Policies can offset costs associated with restoring credit and identity after fraud. They may cover lawyer fees, medical ID theft, lost wages, and stolen funds. Just confirm what the policy does and does not include before purchasing.
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Sign up for account alerts – Many financial institutions will notify you of unusual activity on your accounts via email, text, or mobile push notifications. These alerts allow quick response to fraudulent transactions.
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Monitor your medical records – Periodically check files from your healthcare providers, medical insurers, and pharmacies. Make sure no inaccurate or fraudulent information has been added.
Staying proactive even after identity theft makes it much harder for thieves to strike twice.
Top Identity Theft Protection Services
To take monitoring and protection of your identity to the next level, you may want to utilize an identity theft protection service. As a cybersecurity expert, I often recommend these to clients who have experienced fraud.
Here are a few top options I suggest considering:
Norton LifeLock – Norton LifeLock is one of the most comprehensive identity theft protection services. It includes credit monitoring across all three bureaus, dark web monitoring, bank account alerts, Norton antivirus software, and up to $1 million identity theft insurance. Plans start at $9.99 per month.
IDShield – For $16.95 per month, IDShield provides credit monitoring from TransUnion, dark web scans for compromised info, alerts for suspicious websites and risky transactions, plus $1 million in insurance. ID restoration services are also included.
IdentityForce – With robust monitoring across credit, public records, social media, and the dark web, IdentityForce quickly detects identity theft risks for $14.95 per month. It also offers $1 million in insurance and extensive restoration help.
ReliaShield – ReliaShield monitors your credit, bank accounts, payday loan applications, public records, and more starting at $9.95 per month. It sends alerts if fraudulent activity is found and assists with identity recovery.
IdentityIQ – IdentityIQ leverages monitoring, dark web scans, and AI technology to catch identity theft. Plans begin at $19.99 per month and include up to $1 million in insurance coverage.
I recommend comparing features and pricing to find the right fit based on your needs and budget. And remember, no service can fully prevent identity theft – but they provide an extra layer of protection.
Theft of personal data and identities keeps rising every year. But you have the power to detect it and defend your good name – if you know where to look.
I hope this guide gives you the knowledge you need to catch fraud attempts early and deal with them decisively. If identity thieves strike, don‘t panic. Just be prepared to fight back using the steps I outlined.
Here‘s to protecting your identity and keeping fraudsters from ruining your finances! Let me know if you have any other questions.
