Identity fraud claimed $47 billion in 2024, up from the prior year. Recognizing some of the signs of identity theft is crucial in potentially safeguarding personal information. Key indicators include unexpected bills or charges, inaccuracies in credit reports, and unauthorized account openings. Vigilance and proactive measures, such as placing fraud alerts, freezing credit reports, and promptly reporting suspicious activities, may be important in managing risks.1
Statistics
The financial repercussions of identity theft can extend far beyond the actual dollar amount of the loss, which averages $497 across all types of fraud. Victims often endure prolonged periods of stress and uncertainty. Moreover, the aftermath of identity theft can manifest in various forms, such as denial of new account applications, credit complications, and underreported incidents.2
Types of Identity Theft
Anyone can become a victim of the various types of identity theft. Here are four financial-related types of identity theft to be aware of:
- Financial Identity Theft: Exploits your personal information, such as bank account numbers, credit card numbers, or your Social Security number, for financial gain.
- Tax Identity Theft: Utilizes your personal information to file a tax return and get your refund.
- Child Identity Theft: Steals the personal information of children under age 16 to open credit accounts in their name.
- Estate Identity Theft: Exploits a deceased individual’s personal information to steal money or open accounts.
How to Protect Yourself from Identity Theft
These leading tips can help keep your identity safe:
- Use security software on all of your digital devices
- Protect your Social Security number
- Regularly inspect your financial statements and credit report
- Be alert for phishing emails, which occurs when scammers pose as someone else to obtain your personal information
- Create strong passwords
- Enable multi-factor authentication
- Use caution on social media and when shopping online
- Back up all of your data to either an external hard drive or a cloud-based service
- Stay updated with consumer alerts: https://consumer.ftc.gov/consumer-alerts
While the specter of identity theft looms large in today’s digital landscape, adopting a proactive approach to protection is a first step. By staying informed, remaining vigilant, and investing in comprehensive identity theft prevention services, individuals can help fortify their defenses against this pervasive threat in an increasingly interconnected world.
What to Do if You are Scammed
If you think you have been scammed, the FTC has resources on what steps to take. For example, if you have been scammed for credit or debit card information, report it to the credit card company or bank that issued the card. If you provided any personal information to a scammer (date of birth, credit card number, account number, online banking user ID, password, etc.) contact your financial institution immediately.
You can also report a scam you’ve experienced to the FTC at ReportFraud.ftc.gov.
Sources:
1. AARP.org, March 25, 2025.
2. FTC.gov, August 26, 2025.
