No one wants to worry about having their identity stolen, but the fact is that identity theft is an unfortunate reality. In 2021 alone, the Federal Trade Commission (FTC) received 1.4 million reports of identity theft .
Once criminals have access to someone’s personally identifiable information (PII), they can use it to empty the victim’s bank accounts, pay for purchases with their credit cards, open new accounts for which they are legally responsible, or even steal their health insurance to pay for medical expenses. Fraudsters can even file tax returns in the victim’s name and obtain fraudulent refunds.
But how do you know if you’re at risk of this happening? It’s not always easy to determine if your personal information has been compromised. One study found that 16% of identity theft victims took one to two years to discover the incident .
Luckily, there are plenty of things to watch out for. Here are 10 telltale signs that your identity may have been compromised — and what to do if it’s been stolen.
1. There are unknown charges on your credit card
According to the Federal Trade Commission, credit card fraud is one of the most common types of identity theft, second only to government document and welfare fraud. 3 Signs of this type of identity theft often appear on your credit card bill in the form of charges you didn’t pay. Even small discrepancies can indicate fraud, as thieves often make small test charges first to ensure the transaction will go through before trying larger charges.
It’s important to monitor your credit card statements carefully and contact your card issuer if you notice any discrepancies, no matter how small.
2. You find yourself with a new credit card that you didn’t apply for
Another credit card-related red flag is if you start getting statements for credit card accounts you never opened. This is a common tactic used by scammers who use someone’s PII to apply for a credit card in someone else’s name. They usually try to drain the credit card quickly and close the account before the victim realizes what’s happening.
An effective way to detect this type of fraud is to check your credit report regularly.
3. You do not acknowledge the withdrawal from your bank account
It’s not uncommon to forget or not remember small bank withdrawals and why each time you swipe your debit card. But identity thieves often exploit this human weakness and slowly drain money from bank accounts without the account owner’s knowledge. As with credit card charges, it’s important not to miss any suspicious transactions, no matter how insignificant they may seem.
It is wise to check your statements regularly and carefully identify each withdrawal that appears. If you come across any purchases or withdrawals that you do not recognize, be sure to contact your bank.
4. You apply for credit and are unexpectedly rejected
If you regularly pay your bills on time and in full and your loan or credit card application is unexpectedly denied, you should investigate immediately. Your application may have been denied because of fraudulent activity by an identity thief, such as opening or overdrawing a credit card in your name. These actions can negatively impact your credit score and credit history.
Again, it’s critical to track your account statements and check your credit report and credit score regularly.
5. Your credit score suddenly changes for unexplained reasons
Given the above, a sudden, unexplained drop in your credit score could be the result of a fraudster using your PII. Many of the activities these criminals engage in (opening new credit card accounts, applying for loans, making large purchases, and accumulating debt) can lower your credit score.
If your credit score fluctuates suddenly, you should investigate the cause immediately – and determine whether it was due to your own behavior, such as missing a loan payment or receiving a hard inquiry after your credit application, or was caused by someone else.
6. Debt collectors start calling to collect debts that are not yours
Getting a collection call for a debt that isn’t yours is another red flag for identity theft. The thief may have borrowed money or made purchases in your name and is now trying to get away with the account.
But beware: Such calls can also be part of a scam designed to obtain PII. So if you’re not familiar with what the caller is referring to, it’s wise to ask for documents to investigate further – just don’t reveal any personal information over the phone.
7. You learn that a company you do business with has had a data breach
Stolen data files are akin to a modern-day plague. In 2021, there were 1,862 data breaches reported in the United States, exposing the records of approximately 294 million people . 4 If you discover that an organization you do business with has been compromised, it’s wise to assume that the hackers will sell any information they obtain to identity thieves.
The good news is that even if your information has been compromised, you can take various steps to reduce your risk. Steps include changing your passwords and closing all accounts with the company. If you continue to do business with them, you can always open a new account with a different username and password.
8. You stop receiving monthly bills, or start receiving mail addressed to other people
If a bill or other mail doesn’t arrive when it’s supposed to, it could be because an identity thief submitted a change of address to the sender. Scammers want your mail because it often contains your PII. If you suspect there’s a problem, call the appropriate party and let them know you didn’t receive the material they sent.
If mail keeps arriving but the recipient is someone else, it could be a sign of what’s called “synthetic identity theft.” The term refers to when a thief creates a composite identity by combining real information from several different people. For example, a scammer could use one person’s address and Social Security number and another person’s photo to create a fake identity. The scammer could then apply for credit cards and open other accounts in the fake person’s name. One way to respond to this is to contact the sender of the mail and let them know something’s wrong.
9. You start getting bills for unused medical services
Thieves can also assume someone else’s identity to obtain medical services and medications. For example, a scammer could pretend to be someone else to visit a doctor and obtain a prescription. Unknown medical bills are warning signs to watch out for. Any discrepancies should be resolved quickly so that you avoid paying for charges incurred by the impostor.
10. The IRS rejected your tax return because there is already a tax return filed in your name
Identity thieves can file a false tax return using someone else’s information to claim that person’s tax refund. This type of fraud is usually not discovered until you file your own tax return and it is rejected by the IRS. Signs that this may have happened include someone notifying you that a tax return has been filed for you or a company you never worked for sending you a Form W-2 and other tax forms.
This scam usually occurs at the beginning of the year, before most people have finished filing their taxes. The best defense is to file your taxes early, but you can also check the status of your tax return by logging on to the IRS website and checking your account.
What to do if you suspect identity theft
If you spot any of these red flags, it’s important to take immediate action to stop any fraudulent activity and prevent further damage. In addition to contacting any affected credit issuers or bank accounts, the first thing you should do, according to the Consumer Financial Protection Bureau (CFPB), is to contact any of the three national credit reporting agencies, Experian, Equifax, and TransUnion, to place a fraud alert on your credit report . 5 It’s not necessary to contact all three agencies; when you place a fraud alert with one agency, you’re also required to notify the other agencies.
There are two types of fraud alerts:
An initial warning , which will remain on your file for one year. This is effective if you think you are or will be a victim of identity theft. This fraud alert requires any creditor checking your credit report to take extra steps to verify your identity before approving a new credit account or increasing the credit limit on an existing account.
An extended alert , which will remain on your file for seven years. You can place this type of alert on your credit report after your identity has been stolen and you have filed an identity theft report. Again, this type of alert requires any new creditor to contact you to confirm that it is indeed you making the credit request.
It’s also important to file an identity theft report with IdentityTheft.gov, a resource provided by the Federal Trade Commission for identity theft victims. They can help you develop a personal recovery plan and guide you through the process.
Identity theft is a serious crime that affects millions of Americans, but it can be difficult to detect. To protect themselves, people should be familiar with the warning signs and pay close attention to any indication that their personal information has been compromised. If you think you have been a victim of identity theft, be sure to place a fraud alert on your credit report and file an identity theft report with the Federal Trade Commission.
