Fraud Cleanup

What Identity Theft Is and How to Spot It

A plain answer to what identity theft means, how it happens, and the signs to watch for in your own mail, statements and credit report.

What identity theft means, in simple terms

The FTC says identity theft is when someone uses your personal information without your permission. They use it to commit fraud or theft. The CFPB says it another way. Identity theft occurs when someone steals your personal information to commit fraud.

Think of the information itself as the target.

One more thing worth knowing. USAGov says you may not know right away that you experienced identity theft.

How identity theft happens

USAGov says scammers can steal your identity in many ways. They can do it in person, online, through social media, or by phone. Here are the main ways they get the information.

  • Stolen wallets and purses. Scammers may steal your wallet or purse to get your ID, credit or bank cards.
  • Your trash. Scammers may go through it to retrieve bank statements or tax documents.
  • Skimmers. Scammers may install these at ATM machines, cash registers and fuel pumps to digitally steal information from your bank card.
  • Public Wi-Fi. Scammers may get personal information from your phone when you use it.
  • Phishing. Scammers may use fraudulent email, texts or phone calls to get information from you. The FTC says phone scammers want your money or your personal information, and that you should not give it to them.
  • Social media. Scammers may look through your posts and photos. They hunt for details that identify you.
  • Quizzes and surveys. Scammers may ask for personal information in online quizzes and surveys.

Warning signs of identity theft

USAGov lists warning signs of identity theft. Watch for these in your own mail, statements and credit report.

  • Bills arrive for things you never bought.
  • A debt collector calls about an account you never set up.
  • Your credit report lists an account you never set up.
  • Your mail stops arriving, or pieces of it go missing.

The FTC adds that mistakes on your credit report might be a sign of identity theft. TransUnion says to look over your credit report for odd activity. Watch for accounts you do not know.

What identity theft can do to your money and credit

The damage is not abstract. The FTC says identity thieves can use your information to drain your bank account or run up charges on your credit cards. A thief may also open a credit card account in your name.

Your credit can take the hit too. The FTC says identity theft can damage your credit with unpaid bills and past due accounts.

The FTC's guide adds more. A scammer might use your information to pretend to be you. They might also hack your email or social media accounts.

How to check for identity theft

You do not have to wait for a collection call to find out. Two habits help.

First, check your credit report. The FTC says it's a good idea to regularly check what's in your credit report. Check for any account that is not yours.

Second, watch your statements. TransUnion says to monitor your credit card or other account statements for purchases you didn't make. USAGov says to look over your credit card and bank statements. Flag any charge that is not yours. Report anything odd.

What to do if it has already happened

If you see the warning signs above, act. USAGov says to report identity theft to the Federal Trade Commission. You can file online at IdentityTheft.gov or by phone. USAGov also says to use the steps at IdentityTheft.gov. They can help you recover.

USAGov says to report identity theft to the fraud department at your credit card issuers, bank, and other places where you have accounts. Did someone file a fraudulent tax return with your information? USAGov says completing the Identity Theft Affidavit will invalidate a fraudulent return filed using your information.

For the full recovery walkthrough, see our guide on what to do if identity theft happens to you. TransUnion says you can dispute fraudulent activity through its free online dispute process. The FTC says credit freezes and fraud alerts can also help stop someone who already stole your identity from misusing it again.

Can it happen to your child?

Yes. TransUnion says identity theft can also happen to children and can go undetected for years. USAGov says to learn how to protect your child's information from identity theft.

How to make yourself a harder target

USAGov gives a few habits that cut your risk.

  • Do not answer phone calls, texts, social media messages, or email from numbers or people you do not know.
  • Do not share personal information. That means your bank account number, Social Security number, or date of birth.
  • Keep personal information in a safe place. That includes your Social Security card. Do not carry it in your wallet.

For a fuller plan, see our guide on how to prevent identity theft. If you want to go further, our page on identity fraud protection covers more ways to lock things down.

Check your credit report and statements often. Keep your personal information close. Act as soon as something looks wrong.

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