Signs of identity theft

Identity theft occurs more frequently than you might think, and in many cases, it comes with some serious financial repercussions. According to a recent Insurance Information Institute (Opens in a new tab) study, while the number of victims of identity theft fell from 17 million to 14 million between 2017 and 2018, the financial damage per identity fraud victim almost doubled.

And consumer losses rose to a whopping $1.7 billion, with 3.3 million people effected in 2018. Today, it’s more important than ever to know the signs of identity theft, so we’ve put together some tips to help you understand what to look for, how to respond and minimize damage.

How to tell if your identity has been stolen: 9 signs

Identity theft can occur in many ways. One sign of trouble is a bank statement with charges you don’t recognize. Another indicator of ID theft occurs when your bank card is denied while you’re trying to make a purchase. And unexpected calls from a collection agency is another flag that something’s not right with your finances. Let’s take a closer look at the signs of identity theft and learn how to check if your identity has been stolen:

1. Your credit report has accounts you don’t recognize

An essential step to identity theft protection is to check your credit report regularly. Look for any financial irregularities and report them right away. They could be signs that someone’s stolen your identity. You can check your credit report for free at annualcreditreport.com (Opens in a new tab).

Enrolling in American Family’s credit monitoring services is a great way to stay ahead of the curve and keep a close watch on potential fraud. You’ll receive regular updates regarding your credit report, including inquiries, accounts and changes of information. All of this at a highly discounted rate for being an American Family customer.

2. You’re unexpectedly denied for a line of credit or other service

If you’re applying for a loan that requires a credit check and you’re unexpectedly denied, this could be a big red flag. It can indicate that your identity has been used without your knowledge. ID thieves will open accounts under your name and leave them unpaid. And you get to manage the fallout — by repairing credit and building up your good name again.

3. Your credit or debit card gets declined unexpectedly

One of the more common telltale signs that your identity has been compromised is an unexpectedly declined credit or debit card. You’ll need to contact your card issuer immediately if this happens.

4. You’re getting collection calls for accounts you didn’t open

It’s the call we all dread — unending telemarketing calls from unknown numbers. When you’re screening calls and ignoring unknown or unrecognized numbers, you could be ignoring vital news that your identity has been compromised. If you notice bill collectors calling for debts you didn’t knowingly make, then you may be dealing with a case of identity theft.

But remember, use caution when communicating with unrecognized numbers. It can be a clever way that ID thieves leverage to obtain more personally identifiable information about you. A legitimate collection agency should already have the information about you that they need to conduct business. And never volunteer your social security number to callers.

5. You receive inexplicable bills

Perhaps you’re getting more mail than usual — bills for things you never signed up for. One of the surest ways to know your identity has been compromised is when you receive billing statements for credit cards that you never picked up.

6. Your mail stops coming

Identity thieves think of crafty ways to steal your information. For example, a thief could change the address that your mail goes to, rerouting all your bank and billing statements to another address. If you receive paper billing statements and notice they no longer arrive, you may need to contact your credit card issuer. Additionally, you may need to verify that your mailbox is secure. It’s one more great reason to enroll in paperless billing with American Family Insurance.

7. Unsolicited credit cards arrive in your mailbox

Sometimes, identity thieves with access to your mailbox will enroll you for a card and attempt to intercept them as they arrive at your home. If you happen to find a card you didn’t sign up for, you may be the victim of credit card fraud. Be sure to check with the major credit bureaus and the issuing bank and take action, like placing a temporary block on your credit and cancelling the credit card.

8. You see unfamiliar charges on your bank statement

Maybe you’ve noticed charges you didn’t make. It’s not uncommon for fraudsters to steal card data through a variety of means — from ATMs to point-of-sale systems, to data breaches online.

If your bank has notified you of a suspicious charge and you later had to cancel that card, consider yourself lucky — thankfully your bank intervened. So review your bank statements carefully and make sure each item you’re charged for is a charge made with your knowledge.

9. The IRS contacts you

You might receive word from the IRS that someone has already filed a tax return using your social security number. Tax identity theft is a growing trend in tax fraud and more Americans are falling victim with some 1.5 million returns considered fraudulent during the 2016-2017 tax season.

Tax identity theft occurs when a thief uses your stolen identity, which includes your social security number, to file a tax return. Thieves do this to steal your tax refund before you file.

Thieves may also use your social security number for employment opportunities which you would be left to pay income taxes on.

What are the most common types of identity theft?

We listed nine unique examples of identity theft, but the reality may be that there are endless ways your identity can be stolen by dedicated thieves. Here are some of the more common types of identity theft:

1. Driver's license identity theft

One of the most common forms of ID theft begins with your driver’s license. Typically, an ID thief takes your driver’s license and applies for other forms of identification or tries to make purchases using your identity. Or, perhaps worst of all, they use your identification during a criminal act which could entangle you into legal trouble.

2. Tax identity theft

According to the Consumer Sentinel Network, a part of the Federal Trade Commission, tax fraud accounted for 12% of the total top five types of identity theft in 2018. An increasingly common practice for thieves, this type of identity theft can rob you of your refund. Or worse yet, it may leave you paying penalties and income taxes for undocumented earnings under your social security number.

3. Online data theft

As businesses and consumers alike depend on electronic funds transfer and the processing of payments, there is a growing volume of personal and financial data at risk of being stolen at any given time. Often referred to as a data breach, your stored personally identifiable information can be stolen when hackers are able to access unsecured data.

4. Debit or credit card theft

Debit and credit card fraud are two types of crimes involving the purchase of something that you didn’t authorize. What’s more alarming is that thieves can steal your bank card number, PIN and other information — and make a transaction that doesn’t require a physical card.

5. Medical identity theft

Medical identity theft is an act of taking someone’s identity for medical treatment. This type of ID fraud can leave you owing thousands in medical bills if left unchecked. According to an Experian study (Opens in a new tab), 27% of data breaches in 2017 were medical or healthcare-related.

What information does someone need to steal your identity?

Starting with a name and address, thieves will typically look for other personally identifiable pieces of information to round out an identity theft. This could include your social security number, place of birth and any bank account details.

When you enroll in American Family’s credit monitoring service, our partner CyberScout will continuously monitor for first signs of identity theft and other potential indicators that your identity has been compromised.

What should you do if you suspect identity theft?

The best defense against identity theft is a credit monitoring program to keep you in the know, and identity theft insurance to be there when the unexpected occurs. While identity theft can’t be prevented, it can be mitigated with quick action and a solid plan.

And best of all, when you enroll in our identity theft coverage, you’ll be assigned an identity theft specialist at CyberScout to help you recover your good name in the event of a data breach. They’ll be with you every step of the way.

1. Contact the banks or businesses where fraud occurred

At the earliest signs of identity theft, you should at least contact your bank. This may require you to freeze or close any compromised accounts.

2. Place fraud alerts with the credit bureaus

You should then contact all three major credit bureaus independently. Contacting each is advised, as it will alert each credit agency and help to ensure your identity stays safe.

You’ll want to request a fraud alert that lasts a year. Doing this will make the opening new accounts more difficult as it requires a business to verify your identification before issuing credit to a person making the request. If you’re a victim of identity theft, you can extend that fraud alert to seven years.

Equifax Alerts (Opens in a new tab)
800-525-6285
Equifax Credit Information Services
Fraud Victim Assistance Department
Consumer Fraud Division
P.O. Box 740256
Atlanta, GA 30374

Experian Fraud Center (Opens in a new tab)
888-397-3742
National Consumer Assistance
P.O. Box 9554
Allen, TX 75013

TransUnion Fraud Alert (Opens in a new tab)
800-680-7289
TransUnion
Fraud Victim Assistance Department
P.O. Box 2000
Chester, PA 19016

3. Get copies of your credit reports

Once you’ve notified the credit bureaus and placed fraud alerts with each, you should obtain a free copy of your credit report. Be sure to read each report carefully and make sure all the information is accurate. If you notice any accounts or transactions you didn’t authorize, you’ll need to take some additional steps, such as freezing your credit report.

4. Place a freeze on your credit report

Placing a request fraud alert on your account prohibits new credit accounts from being issued unless you provide a password to unlock your credit report. Bear in mind, creditors and lenders that you already have accounts with will still have access to your credit file. And if a fraudster has breached an existing account, further damage can be done.

5. Report identification theft to the Federal Trade Commission (FTC)

If your identification has been stolen, you should make it a priority to report it to the FTC as soon as you can.

Federal Trade Commission (Opens in a new tab)
Fraud Victim Assistance Department
Phone: 877-ID-THEFT

6. Contact the Internal Revenue Service (IRS)

If your identity has been used to commit fraud, you should contact the IRS to make sure you’re not also a victim of tax identification theft. If someone has enough information to open new accounts, such as a name, date of birth and social security number, they could also file a tax return in your name.

How can I prevent identity theft damages?

From physical identity theft — like a stolen driver’s license or rerouted mail, to digital identity theft — like a stolen password or fake link in your email, thieves are crafting new and novel ways of taking your personal information and using it fraudulently.

One way consumers are fighting back is with credit monitoring and identity theft insurance from American Family Insurance. By keeping a close eye on your identity, you’re staying informed of how and where your personal information is used.

Protect your identity before it before the unexpected happens. Make sure you’re fully informed to get the best protection possible. Check out Identity Theft Protection & Restoration from American Family Insurance to learn more.

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation. We are not responsible for the content of any third-party sites that may be linked in this article.