Your identity is like a puzzle, made up of many pieces. Some are more valuable than others, like your Social Security number versus your phone number, or your driver’s license versus your address alone. But with enough pieces in hand, a scammer can put together an accurate picture of you — one that’s good enough to commit identity theft. As you’ll see, scammers use several tricks to scoop up those identity puzzle pieces. They can gather some without you knowing, such as from data breaches. Others can be gathered by tricking you, such as with phony emails and texts, bogus ads, and the like.

How does identity theft start?

It can happen in several ways. In the physical world, it can happen simply because you lost your wallet or debit card. In some cases, someone gets your info by going through your mail or trash for bills and statements. In other cases, a thief “skims” credit card info from a compromised point-of-sale terminal or ATM. There’s old-fashioned shoulder-peeping too, when you’re doing some banking in a coffee shop and log into your accounts near a snoop. In the digital world, that’s where the avenues of identity theft blow wide open. They include:

  • Data breaches occur when hackers steal thousands and thousands of lines of personal info from businesses ranging from financial institutions to hospitals and insurance companies to dating websites.
  • Eavesdropping on public wi-fi, where hackers steal info from people who’re shopping or banking online without the security of a VPN.
  • Phony online ads, which promote so-called great deals and then direct you to a scammer’s site designed to steal your info.
  • Malicious websites and apps that masquerade as one thing, like wallpaper and productivity apps, but are really designed to steal info when you use them.
  • Social media scams that lure you into providing personal info, whether through posts or direct messages.
  • Other scams that begin with a phone call, text, or an email. These remain the most preferred contact methods that scammers use.

What are some signs of identity theft?

Identity thieves leave a trail. With your identity in hand, they can charge things to one or more of your existing accounts — and if they have enough info about you, they can even create entirely new accounts in your name. Either way, once an identity thief strikes, you’ll probably see signs that something is wrong. Possible signs include:

  • You start getting mail for accounts that you never opened.
  • Statements or bills stop showing up from your legitimate accounts.
  • You receive authentication messages via email, text, or phone for accounts you don’t recognize.
  • Debt collectors contact you about an account you’ve never seen before.
  • Unauthorized transactions, large or small, show up in your bank or credit card statements.
  • You apply for credit and get denied unexpectedly.
  • In extreme cases, you discover that someone else has filed a tax return in your name.

As you can see, the signs of possible identity theft can run anywhere from “Well, that’s strange” to “Oh no!” The good news is that there are several ways to check if someone is using your identity before it becomes a problem that gets out of hand.

Steps to take if you think you’re the victim of identity theft

Discovering that your personal information may have been stolen can be overwhelming—but acting quickly is key to limiting the damage. Knowing what to do next can help you recover faster and protect yourself moving forward.

1) Notify the organizations involved and request a credit freeze

Whether you spot a curious charge on your bank statement or you discover what looks like a fraudulent account in your credit monitoring service, let the bank or business involved know you suspect fraud. With a visit to their website, you can track down the appropriate number to call and get the investigation process started. In the meantime, consider putting a security freeze in place to prevent others from opening new credit, bank, and utility accounts in your name. It won’t hit your credit score, and you can unfreeze it when needed. You’ll find this feature in our McAfee+ plans along with the credit monitoring mentioned above.

2) File a police report

Some businesses will require you to file a local police report to acquire a case number to complete your claim. Identity theft is still theft, and reporting it provides an official record of it. Importantly, if the identity theft leads to someone committing a crime in your name, a police report right away can help you clear your name. Likewise, save any evidence you have, such as statements or documents associated with the theft, to help clean your record as well.

3) Contact the Federal Trade Commission

The Federal Trade Commission (FTC) identity theft website is a fantastic resource should you find yourself in need. Above and beyond simply reporting the theft, the FTC can provide you with a step-by-step recovery plan — and even walk you through the process if you create an account with them. Additionally, reporting theft to the FTC can prove helpful if debtors come knocking to collect on any bogus charges in your name. You can provide them with a copy of your FTC report and ask them to stop.

4) Contact the IRS, if needed

If you receive a notice from the Internal Revenue Service (IRS) that someone used your identity to file a tax return in your name, follow the information provided by the IRS in the notice. From there, you can file an identity theft affidavit with the IRS. If the notice mentions that you were paid by an employer you don’t know, contact that employer and let them know that someone has stolen your identity.

5) Continue to monitor your credit report, invoices, and statements

Another downside of identity theft is that it can mark the start of a long, drawn-out affair. One instance of theft can possibly lead to another, so even what may appear to be an isolated bad charge on your credit card calls for keeping an eye on your identity. Many of the tools you would use up to this point still apply, such as checking up on your credit reports, maintaining fraud alerts as needed, in addition to reviewing your accounts closely. Several features in our McAfee+ plans can do this work, and quite a bit more, for you:

  • Identity Monitoring checks the dark web for your personal info, including email, government IDs, credit card and bank account numbers, and more. If any of it shows up on the dark web, our software sends you an alert with guidance that can help protect you from identity theft.
  • Our online protection software also offers several transaction monitoring features. They track transactions on credit cards and bank accounts — sending you a notice if unusual activity occurs. They also track retirement accounts, investments, and loans for questionable transactions. Finally, further features can help prevent a bank account takeover and keep others from taking out short-term payday loans in your name.
  • And finally, should the unexpected happen, our Identity Theft Coverage & Restoration can get you on the path to recovery. It offers up to $2 million in coverage for legal fees, travel, and funds lost because of identity theft. Further, a licensed recovery pro can do the work for you, taking the necessary steps to repair your identity and credit.

Preventing identity theft

Identity theft can happen to anyone—and when it does, it can lead to financial loss, damaged credit, and a long recovery process. The good news is that by taking proactive steps, you can greatly reduce your risk and keep your identity safe.

Set strong, unique passwords

Strong and unique passwords across all your accounts form your primary line of defense. With all the accounts we have floating around, juggling dozens of strong and unique passwords can feel like a task — thus the temptation to use and re-use simpler passwords. Hackers love this because one password can be the key to several accounts. Instead, try a password manager that can create those strong and unique passwords for you and safely store them as well. Comprehensive security software will include one.

Go private

Social media platforms like Facebook and Instagram give you the option of making your profile and posts visible to friends only. Choosing this setting keeps the broader internet from seeing what you’re doing, saying, and posting, which can keep your info out of a scammer’s hands. Features like our Social Privacy Manager can make quick work of this on your social media accounts.

Don’t click on any suspicious links in emails or texts

They could link to scam or phishing sites. You can also stay safer with our Web Protection and Text Scam Detector. They’ll alert you if a link might take you to a sketchy site. It’ll also block those sites if you accidentally tap or click on a bad link.

Clean up your personal info online

Indeed, your identity is like a puzzle with dozens and dozens of pieces. To fill out those puzzles, many scammers gather info on data broker sites. Fueled by thousands of data points on billions of people, they can harvest your contact info, along with other personal info for a highly tailored attack. McAfee’s Personal Data Cleanup scans some of the riskiest data broker sites, shows you which ones are selling your personal info, and, depending on your plan, can help you remove it.