How to protect against identity theft

In 2024, Americans lost more than $12.5 billion to fraud – according to the Federal Trade Commission (FTC). That year, identitytheft.gov received over one million reports of identity theft.

In 2026, identity theft is still a top consumer complaint, but consumers in the US are becoming increasingly aware of identity theft prevention steps. Global Cyber Alliance’s 2025 Consumer Cyber Readiness Report states: “This year’s respondents were more likely than last year’s to say they had identity theft protection (33 percent vs. 28 percent).” Other indicators of increased readiness were higher use of tracker-blocking extensions and file-encryption.

In this guide, you’ll learn what identity theft is, and how it happens. You’ll also find expert prevention measures – from securing your documents and accounts to recognizing scams – to actions you should take immediately if you suspect identity theft.

What is identity theft?

The simplest way to define identity theft is: it’s when someone purposefully uses your personal information for illegal gains or to cause harm. It involves the theft of personally identifiable information (PII) which includes – but isn’t limited to – your name, driver’s license details, Social Security number (SSN), health records, and biometric data. Cybercriminals also often combine several bits of stolen data like that to orchestrate even broader, more precise, and more harmful types of identity theft.

Major types of identity theft include financial, medical, criminal, tax, child, and synthetic identity theft. Here are some common examples:

• Opening credit cards in your name and making purchases
• Using your medical ID details to obtain healthcare or insurance reimbursements
• Using your name and address when committing crimes
• Filing fraudulent tax returns
• Using a child’s credit file to open accounts

Perhaps the most technologically advanced of them all is synthetic identity theft. That’s when legitimate PII data points are combined with new details to build a fictitious “person” that can be used for illegal deeds over time – often tricking traditional identity verification systems.Identity theft can really happen to anyone, and it can spill over from the digital to the physical world. For example, a stolen wallet could lead to cloned bank cards –that is, if you don’t block cards, freeze your credit, and report it on time.The best identity theft prevention combines precise awareness and professional monitoring services. Read on to find out how identity theft happens.

How identity theft happens

Identity theft happens in many ways. However, if you understand how you may be vulnerable, you’re more likely to prevent identity theft.

Phishing

Phishing was the leading internet crime reported in 2024 according to the FBI. An example is criminals sending emails with a link they craft to steal your personal details. That link could lead to a legitimate-looking website built to harvest full names, financial details, and account passwords. Offline, there’s “vishing” – or when a malicious actor calls you for a one-time security access code to access your email or banking accounts.

Data breaches

Organizational breaches often lead to the exposure of account passwords or various PII of many customers. Criminals exploit software vulnerabilities or weak access controls to gain access – or simply phish a company employee to get into the company’s internal network. Stolen PII is also sold on the dark web – an anonymous part of the internet. A buyer can then use stolen data – like your SSN, date of birth, and address – to open a credit card in your name.

Mail theft

Mail theft involves the theft of physical checks and documents out of someone’s mailbox. For instance, the United States Postal Inspection Service mentions “check washing” incidents – where criminals chemically replace payee names and payment amounts. In fact – according to the US Postal Inspection Service – over $1 billion in counterfeit checks and money orders are observed every year.

Device loss or theft

If a stolen device like a phone is unlocked or protected with a weak password like “12345678,” odds are it’s compromised. Criminals can then access email, cloud storage, and any saved PII (like photos of your ID card in your gallery).

Oversharing on social media

People very often overshare personal data on social media, and both the FTC and the Cybersecurity and Infrastructure Agency (CISA) heavily advise against that. Publicly posting birthdays, schools, names, and “first car” information can be used by criminals to answer the security questions many sites use for account resets.

Key prevention measures

Here are the key prevention measures you need to know to become highly knowledgeable about identity theft protection. These range from securing your documents to monitoring and scam awareness.

Secure your personal and financial documents

Keep the hard copies of your sensitive papers – like your SSN card, passport, birth certificate, and banking info – locked away safely if you don’t really need to carry them around. Ideally, create digital copies of them and store them on an encrypted USB drive – or secure cloud storage if you need constant access.

If you were thinking of throwing out your old tax returns, insurance paperwork, or anything with account numbers, don’t forget to physically shred that to pieces before disposal – since criminals still dumpster dive.

Also, mail piled up in your mailbox is a goldmine for criminals – so you could consider a USPS Informed Delivery account or a high-security mailbox. If possible, prefer digital copies of sensitive mail and cancel any paper mail delivery.

Remember, carry only what you need. Carrying around your passport or SSN card all the time isn’t necessary for everyday purposes.

Protect your online accounts and devices

Weak access control is often the consumer’s Achilles’ heel. For example, easy-to-guess passwords with the name of your dog or something you’re known to post online is what criminals will try first. Of course, don’t use classic passwords like “123456” or “password.” It’s easy to download a vetted password manager to generate and store unique passwords for each of your accounts.

Don’t forget multi-factor authentication (MFA). This adds more access levels or even a second device – or a one-time passcode or passkey – so that a thief can’t get in without going through the whole login process. A basic version of layered access is a One-time-password (OTP) code you receive on a designated device without which you can’t log in to your account.

Keep your devices up-to-date, since this fixes security issues. Also, use reputable cybersecurity software like antivirus and anti-malware tools, as well as network security tools like a virtual private network (VPN) – especially if you’re on public Wi-Fi.

For example, a tool like Coveron (formerly NordProtect) bundles security, privacy monitoring and data exposure alerts – like dark web leaks. Although affordable, this is a comprehensive solution. But it's available only to US customers, and New York residents won't be able to use its identity theft recovery, cyber extortion protection, and online fraud coverage protection perks.

Monitor your credit, accounts, and notifications

Monitoring your sensitive data means catching potentially catastrophic events early. Free credit reports are available from Equifax, Experian, and TransUnion at AnnualCreditReport.com – so check that for suspicious activity. Of course, regularly review your financial statements.

If you haven’t already, create alerts for your financial accounts – for unusual transactions or login attempts. Then, understand the difference between fraud alerts and a credit freeze – a fraud alert is when creditors have to verify your identity before issuing credit (initial alert lasts 1 year, renewable), while a credit freeze stops new account creation until you lift it. For an extra layer of protection, use a well-known service like Aura – with credit monitoring, dark web alerts, and identity theft recovery support.

Limit sharing and be mindful of consent

Stop publicly oversharing PII on social media and online in general (e.g., on forms), and think about who has access to your personal data. Don’t give your PII – like your SSN – to a company unless it’s clear why they need it and how they’ll store it safely.

Remember that social media platforms make money off of personal lives, so limit what everyone can see in your privacy settings, and minimize the consent given to social media platforms – such as analytics and personalization. And if someone you don’t recognize calls you or emails you, it could be a scammer posing as an official source. Search for their email address or see if the company they’re representing answers calls.

Be aware of scams and stay educated

No single tool can completely protect you from the evolving tactics of scammers and cybercriminals, especially now that they also have access to AI tools for more sophisticated ideas. In general, never click links in an email unless you’re certain where it comes from. Secondly, subscribe to FTC scam alerts and newsletters from trusted cybersecurity sources for the latest on fraud tactics.

Remember that unaware children and older people are the most attractive targets, so pass on your knowledge. Most importantly, remember that security is a habit.

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What to do if you suspect identity theft

There are immediate steps to take if you suspect identity theft – like money suddenly missing from your account, or if your medical institution calls you about services you never used. Remember to keep copies of all correspondence during this process (and all reference numbers, and PINs). Now, I’ll guide you through what to do step-by-step:

1. Freeze all credit immediately

If you have credit, reach out to Equifax, Experian, and TransUnion – and request to freeze your credit. This way, nobody – including you – can open new credit in your name until you unfreeze. It’s free and doesn’t affect your credit score. You can also temporarily unfreeze – e.g., for a loan.

2. Notify your financial institutions

Call all financial institutions you hold an account with to lock the affected account(s). Inform them of exactly what’s going on, and they’ll guide you. Then, immediately change your passwords. Enable MFA on every online account that you have, if you haven’t done so already.

3. Report to the FTC

Go to identitytheft.gov to file a report with the FTC. They’ll provide you with a personal recovery plan and ready-made letter templates you send to credit bureaus. If the identity theft involves mail theft, medical ID theft, or something to do with local crimes, report it to your local authority – IRS for tax, postal inspector for mail, health provider, or local police.

4. Document everything and follow up

Keep evidence of every call, text, and email you make or receive during this process – including evidence of when, where, and how you think the identity theft occurred. Following up promotes urgency – especially since you want the fraudulent accounts removed from your reports. Recovering from identity theft is easier if you’re using identity theft solutions like Aura. Aura alerts you early, and helps you through the process.

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Special considerations

That’s not all, because there are a few special considerations to mention. First, consider extremely vulnerable groups like children and seniors.

Children typically have clean credit histories – so they’re ideal targets for synthetic identity fraud. Unfortunately, parents don’t usually notice this until the child is denied credit or loans later in life.

Meanwhile, seniors are also a cybercriminal favorite. That’s because they might not be up to speed on technology and scams. For instance, seniors can be tricked by AI-generated voices mimicking their relatives. Urgent messages pressuring for help also tends to work on seniors.

Remote workers should also be considered, since they spend so much time online and a lot of them use their personal devices for work. For remote workers, using top-tier VPNs, strong passwords, multi-factor authentication, and the latest software is crucial.

Finally, old electronics are often forgotten. Old phones, computers, and physical media like USB drives and CDs/DVDs can hold forgotten – but valuable – information that someone can use to scam or defraud you. Before disposing of your devices or media, always format them, reset them – or destroy them to be sure.

Conclusion

As you’ve seen, identity theft is a serious issue in the US – and globally. Cybercriminals are sneaky, and looking for quick illegal gains most of the time. They’re always looking for a quick software vulnerability to exploit, or an unaware citizen to defraud. Some are caught, while some are still out there – spending years fabricating synthetic personas from other people’s personal information. Though cybersecurity and credit monitoring has caught up, phishing and massive data breaches are still rampant.

Preventing identity theft risks means constant, proactive awareness on your end – it’s not a one-time thing. Remember: secure information, monitor activity, and act immediately if something seems off.

While no single tool can stop every threat, combining smart digital habits with reputable monitoring services – such as Aura for identity alerts or Coveron for secure connections – can significantly reduce your exposure. You can always consult this guide for valuable information on how to protect yourself against identity theft.

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