Personal Risk Insights
Identity Theft 101: Safeguard Your Identity and Recover From Fraud
DECEMBER 3, 2024
Identity theft is on the rise. More than 842,000 cases in the U.S. were reported in the first three quarters of 2024.1 At this pace, identity theft cases are expected to exceed those reported in 2023. The first half of 2024 saw 1,571 data breaches, impacting 1.07 billion victims — an increase of 14% compared to the same period last year.
As the numbers continue to climb, consumers must take steps to protect their personal information.
Common Causes of Identity Theft
It’s essential to understand what is causing the rise in identity theft cases. The increase is due to:
- Data breaches — When cybercriminals access a company's database, they search for personal information such as names, addresses, Social Security numbers, and credit card information. This information is usually sold on the dark web and later used for fraudulent activities, such as loans or credit cards in the victim’s name.
- Spoofing and phishing schemes — Cybercriminals pose as a trustworthy organization such as a bank, government agency, or service provider to obtain personal information. These scams occur via email, text messages or phone calls. Once the victim provides the information, the criminals use it for identity theft.
- Compromised accounts — Cybercriminals access a victim’s personal information by hacking into their email, social media, online banking or other accounts. They then search for passwords, credit card details, or personal identification numbers (PINs), which they use to commit identity theft.
- Compromised devices — Cybercriminals gain access to the victim’s computer or phone by using unsecured public Wi-Fi networks, viruses, fraudulent websites or other means. The thief then installs malware or spyware to monitor the victim’s activity and steal sensitive information.
Identity theft is not strictly an electronic crime. Financial documents in your mailbox, an old receipt, or any documents containing your personal information can all serve as launching pads for identity thieves.2
Types of Identity Theft
Identity theft is not just a stolen credit card — many crimes fall under this umbrella.
| Child Identity Theft Stolen personal info of a minor |
Synthetic Identity Theft Mixed real and fake data |
| Tax Identity Theft Fraudulent tax returns |
Medical Identity Theft Stolen medical info or services |
| Biometric Identity Theft Copied fingerprints or faces |
Home Title Fraud Stolen property titles |
| Mortgage Fraud Lies or deception on loans |
Debit Card Fraud or Credit Card Fraud Stolen cards or card numbers |
| Employment Fraud Fake job postings |
Driver's License Identity Theft Stolen license or info |
| Account Takeover Fraud Hacked accounts |
Mail Identity Theft Stolen or tampered mail |
Preventing Identity Theft
There are steps you can take to prevent becoming a victim of identity theft. Practice good cyber hygiene and:
- Avoid phishing attacks. Be cautious with phone calls or emails from your bank, government or favorite store. Do not provide account numbers or passwords. Establish two-factor or biometric authentication when possible. Consider using cybersecurity tools like antivirus software and VPN to protect your devices and online privacy.
- Monitor credit reports. Order reports regularly from each of the credit bureaus (Equifax, Experian, and TransUnion). Unfamiliar activity may indicate your information has been compromised. If you find fraudulent accounts, report the information to the credit bureaus and banks immediately.
- Stay informed. Educate yourself on the latest scams and never share sensitive information, especially on unsecured platforms. Only provide your personal information on trusted websites that begin with “https” and have a padlock symbol.
- Use strong, unique passwords. Use different, complex passwords for each of your accounts. A password manager can assist you in generating and storing strong passwords so you don’t have to memorize them.
- Freeze your credit. Consider freezing your credit with the major bureaus or placing a fraud alert on your accounts. This prevents scammers from opening new accounts in your name.
Taking proper precautions can reduce your risk significantly. Stay vigilant, and informed, and take action to protect your information.
What to Do If You Are a Victim of Identity Theft
- Contact the companies and banks where the fraud occurred.
- Place fraud alerts with the three credit bureaus.
- Ask for copies of your credit reports.3
- File a report with the Federal Trade Commission at identitytheft.gov.
- Report the theft to the relevant authorities as soon as possible, including your local police precinct. Early action may mitigate the damage.4
- Contact your credit card issuers, bank, and other places where you have accounts.5
- Notify the IRS that you may be a victim of identity theft. Once it’s confirmed you’re a victim, you’ll be issued an IP PIN each year that will be used to verify your identity on all future tax returns. You can also request an IP PIN at any time.
How USI Can Help
USI Insurance Services is here to help you with all your personal risk management needs. Learn more about good cyber hygiene from our checklist. If you are a victim of cybercrime or would like a cyber assessment, please contact USI at PersonalRiskService@usi.com.
Sources:
1 Identity Theft and Credit Card Fraud Statistics for 2024 | The Motley Fool
2 Best Identity Theft Protection Services of November 2024 | Forbes Advisor
3 What do I do if I’ve been a victim of identity theft? | Consumer Financial Protection Bureau
4 What to do if your identity is stolen: 12-step guide | LifeLock
5 Identity theft | USAGov
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