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💰 Financial

Identity Theft

Someone using your identity can destroy your credit and drain your accounts — fast action limits the damage.

Prepare

  • Freeze your credit now (even before any incident) — it's free at all three bureaus and is the single most effective protection against new account fraud. Thaw it temporarily when you need credit.
  • Keep a record of all financial accounts, card numbers, and contact numbers in a secure location (password manager or fireproof safe) — you will need these to report fraud quickly.
  • Enable two-factor authentication on all financial accounts and email.
  • Review your free annual credit reports at AnnualCreditReport.com — look for accounts you don't recognize.

Prevent

  • Freeze your credit at Equifax, Experian, and TransUnion — this is the most effective prevention.
  • Use unique, strong passwords for every financial account — a password manager makes this practical.
  • Never provide SSN, account numbers, or passwords over the phone unless you initiated the call to a verified number.
  • Shred financial documents before disposal.
  • Be cautious on public Wi-Fi — avoid logging into financial accounts on unsecured networks.

Respond

Immediately:

  1. Place a fraud alert with one credit bureau (they notify the others) — this requires lenders to take extra steps to verify identity before opening new accounts.
  2. Freeze your credit at all three bureaus if not already done: Equifax (equifax.com), Experian (experian.com), TransUnion (transunion.com). Free and effective immediately.
  3. Report to the FTC at IdentityTheft.gov — this generates a personal recovery plan and an official Identity Theft Report, which you will need for disputes.
  4. Contact affected financial institutions — call the fraud department (not customer service) of any bank, credit card, or lender involved. Ask them to close compromised accounts and issue new account numbers.
  5. Change passwords and enable 2FA on all accounts, starting with email (email is often used to reset everything else).
  6. File a police report if the theft involved existing account takeover or if a creditor requires it for dispute resolution.

Resources

  • FTC Identity Theft Report and recovery plan: IdentityTheft.gov
  • Credit freeze — Equifax: equifax.com/personal/credit-report-services/credit-freeze
  • Credit freeze — Experian: experian.com/freeze/center.html
  • Credit freeze — TransUnion: transunion.com/credit-freeze
  • Annual Credit Report (free): AnnualCreditReport.com
  • IRS Identity Protection PIN (if tax ID theft): irs.gov/identity-theft-central