What It Means
Identity theft occurs when someone uses your personal information - such as your Social Security number, name, or credit card numbers - without permission for financial gain. Types include credit identity theft (opening new accounts in your name), account takeover (accessing existing accounts), tax identity theft, and medical identity theft. Victims may discover identity theft through unexpected charges, unfamiliar accounts on credit reports, or denied credit applications. Protective measures include freezing your credit, using strong unique passwords, monitoring your credit reports, and enabling two-factor authentication. If you become a victim, file reports with the FTC (IdentityTheft.gov), place fraud alerts with credit bureaus, and dispute fraudulent accounts.
Frequently Asked Questions
How do you know if your identity has been stolen?
Warning signs include unfamiliar accounts on your credit report, unexpected bills or collection notices, denied credit applications, missing mail, and unauthorized transactions on existing accounts.
Does identity theft affect your credit score?
It can severely damage your credit if fraudulent accounts go unpaid or into collections. However, once disputed and confirmed as fraud, these items should be removed from your credit report.