The number of identity thefts that occur each year is staggering.
Additionally, studies indicate that up to 22 percent of Americans have experienced identity theft in their lifetimes. Median losses per individual case hover around $500, however about 13 percent of victims experience catastrophic losses exceeding $10,000.
Again, staggering.
The four most prevalent forms of identity fraud are listed below along with preventive measures consumers can take:
1. Financial Identity Theft
Thieves use citizens’ names, Social Security Numbers or bank details to steal funds, make unauthorized purchases or open new credit accounts.
- Warning Signs: Unexplained bank withdrawals, collection agency calls for debts consumers do not recognize or unexpected denials for loans.
- How to Protect: Individuals should monitor their credit reports regularly. Free credit reports can be accessed via AnnualCreditReport.com. Home internet with built-in spam blockers and virus protection can also help prevent financial identity theft.
2. Tax Identity Theft
This happens when a fraudster files a fake tax return using a SSN to claim a fraudulent refund before citizens file their actual taxes.
- Warning Signs: The IRS rejects an e-filed return because one has already been filed or people receive tax documents from employers they have never worked for.
- How to Protect: File taxes as early as possible and visit the IRS Identity Theft Guide to report suspected issues.
3. Medical Identity Theft
Someone steals a consumer’s health insurance number to receive medical care, acquire prescription medications or submit fake billings to an insurer.
- Warning Signs: Unexpected Explanation of Benefits (EOBs) statements or medical bills for treatments, equipment or doctor visits a person did not receive.
- How to Protect: Always review medical bills, EOBs and health insurance portal statements closely.
4. Criminal Identity Theft
A suspect uses personal information—like a person’s driver’s license or name—when stopped or arrested by law enforcement, potentially placing a criminal record under the individual’s name.
- Warning Signs: Receiving traffic tickets or summonses for crimes in areas where the motorist was not present or failing background checks unexpectedly.
- How to Protect: Routinely check state driving records and state court databases to ensure no unauthorized activity is tied to an identity.
Avoiding becoming a victim of identity theft requires constant vigilance. Consumers should protect their personal data by following the recommendations above along with setting up account alerts, using strong, unique passwords with two-factor authentication and frequently reviewing financial statements.
