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Financial Protection

Identity theft

Identity theft is the misuse of your personal or financial details, such as your name, Social Security number or a card number, by someone you did not authorize, often to make charges, open accounts or claim money in your name.

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How it works

Stolen information can be used in many ways: charging your existing cards, opening new credit cards or utility and phone accounts, filing a tax return to take your refund, getting a job or medical care under your name, or even giving your name during an arrest. Some misuse shows up right away; other kinds stay hidden until an unfamiliar bill or account turns up.

Warning signs include charges or withdrawals you did not make, a new bill you did not expect, regular bills that suddenly stop arriving, and accounts on your credit report that you do not recognize. Checking statements and credit reports on a routine basis makes these easier to catch, and a credit freeze adds a barrier against new accounts being opened in your name.

If you think your identity was stolen, you can report it to the FTC at IdentityTheft.gov and get a free personal recovery plan. The plan walks through each step for your situation, lets you track progress, and provides pre-filled letters and forms. A fraud alert or credit freeze can be added to limit new accounts while you work through it.

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Sources and further reading

Examples are illustrative and focus on U.S. personal finance. This page is educational, not individual financial, investment, tax, or legal advice. Read our editorial approach or report a correction.

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