6 Key Signs You’ve Been the Victim of Identity Theft

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Identity theft can happen to anyone. Unfortunately, reports of these types of fraud are on the rise. Indeed, the Federal Trade Commission (FTC) said it received more than 5.1 million scam reports in 2022, more than 1.1 million of which were reports of identity theft.

These end up costing a lot. According to the FTC, consumers reported losing nearly $8.8 billion to fraud in 2022, an increase of more than 30% over the previous year.

But there are things you can do, and if that happens to you, the sooner you realize you’re a victim, the faster you can take action.

Here are some key signs you’ve been a victim of identity theft.

Unexplained Financial Activity

One of the most evident signs of identity theft is unexplained financial activity, such as unauthorized transactions, withdrawals, or new accounts opened in your name.

“Monitor your bank statements, credit card reports and credit score regularly to promptly spot any unusual or suspicious activity,” said Ani Chaudhuri, co-founder and CEO at Dasera.

You also should be even more cautious around the holidays, “when you are giving your credit card and mobile payment applications a workout,” added Stephanie Benoit-Kurtz, Ph.D. and lead cybersecurity faculty at the College of Business and Information Technology at the University of Phoenix.

“Sometimes these minor charges like tolls or gas purchases will show up on your bill for $5 or $6,” she said. “Do not ignore these! The bad actors are just giving your card a test run before going for more significant purchases. Call the credit card or financial servicing department right away to get the transaction blocked and removed.”

Missing Mail or Unusual Correspondence

According to Chaudhuri, identity thieves may reroute your mail or receive sensitive information using your name, leading to missing bills, statements or notifications.

“If you stop receiving regular mail or notice unusual correspondence related to unfamiliar accounts, take immediate action to investigate further,” said Chaudhuri.

Unusual Healthcare-Related Correspondence

Benoit-Kurtz noted that you should check your healthcare insurance at least once a quarter for anomalies, as healthcare identities are very attractive to bad actors.

“This is where your healthcare information including personal information has been sold,” she said, “and then a person buys that identity and attempts to be you at a healthcare facility using your insurance and other healthcare benefits to pay for services. In some cases, these situations can turn into tens of thousands of dollars in bills that you did not generate. It is very important to watch your insurance claims and payouts for services.”

Jim Van Dyke, senior principal and head of innovation at TransUnion, echoed the sentiment, saying that medical identity theft is something many overlook.

“Watch for inaccurate medical records, including explanations of benefits (EOBs) for services that were not provided to you, or collection notices/bills for health services you did not receive,” he said, adding that to avoid this, you should review EOB when it’s received.

Pay Attention to Internal Revenue Service (IRS) Notifications

As Kurtz explains, IRS identity fraud — when a bad actor files for your refund and then has the funds transferred to their account or to a post office box — has become very popular.

Signs that this is happening include receiving a letter from the IRS inquiring about a suspicious tax return that you potentially did not file or getting a notice that your online account has changed without your interaction.

“Pay attention to these notifications and emails,” she said. “Reach out to the IRS directly to understand the communication and activity to determine if fraudulent activity is taking place.”

You Lose Access to Your Accounts

Account takeovers (ATOs) are a growing challenge, with attempted takeover attempts jumping 427% in the first quarter of 2023 compared to the previous six months, according to Sift data, said Rebecca Alter, trust and safety architect at Sift.

A sign that this is happening is if you lose access to your accounts or stop receiving bills — for example, someone changes the password on Netflix, locking you out of your account.

“If you suspect this is happening to you, or you receive a notification from a website that someone besides you tried to access your account, immediately change your passwords, not just on the compromised site, but on any website where you use that same password,” Alter said.

Identity thieves may use your personal information and passwords to gain access to multiple accounts, where they can drain you of money or even reward points. A survey conducted by Sift found that 44% of those who had been impacted by ATOs have experienced it up to five times, she added.

Changes to Your Credit Score

Another telltale sign of identity theft is an unfamiliar account on your credit report or a significant change to your credit score.

“Whether it’s due to spending or someone opening an account in your name,” Alter said, “credit monitoring can ensure that you catch any changes that weren’t caused by you.”

Sometimes, you may even discover that your credit score dropped when you try to open a new line of credit — such as a loan or credit card — and get denied, she added, and using a credit monitoring service can ensure that you catch these changes as quickly as possible.

“Never give out your Social Security number to a merchant or for discounts and rewards,” Alter added. “Your Social Security information should only be provided to trusted financial institutions and government agencies.”

Share This Article: