How to Protect Yourself from Identity Theft

Identity theft happens when someone uses your personal information — your Social Security number, credit card number, bank account details, or other identifying information — without your permission, usually to steal money or open new accounts in your name. It affects millions of Americans every year and can take months or years to fully resolve. Understanding how it happens and what you can do to prevent it is one of the most valuable investments you can make in your personal security.

Criminals obtain personal information through several common methods. Data breaches happen when hackers break into the computer systems of a company you do business with — a retailer, bank, health insurance company, or government agency — and steal large databases of customer information. This has happened to major companies including Target, Equifax, Yahoo, and many others. If your information was in one of those databases, it may now be circulating on illegal markets.

Phishing is another common method — criminals send emails or text messages pretending to be your bank, the IRS, Social Security Administration, or another trusted organization. These messages try to trick you into entering your login credentials, Social Security number, or credit card information on a fake website. The message often creates urgency: "Your account will be closed unless you verify your information now."

Physical theft still occurs too. Criminals steal mail from mailboxes (particularly new credit cards, bank statements, and tax documents), go through trash for discarded documents with personal information, and steal wallets and purses containing Social Security cards, credit cards, and ID.

The encouraging news is that there are specific, practical steps that significantly reduce your risk. Freezing your credit reports, monitoring your accounts regularly, using strong unique passwords, and being skeptical of unsolicited messages are all proven protections. You do not need to be a technology expert to implement these — this guide walks you through each one.