Identity Theft: Learn How to Stay Safe and Not Become a Victim

Did you know the odds of being struck by lightning in a given year are only around 1 in 100 million? That’s not a scary thought, since most people survive.

But the odds of becoming a victim of identity theft? Much higher, and rising fast. In 2024, the Federal Trade Commission received over 1.1 million reports of identity theft, accounting for nearly 18% of all fraud-related complaints, with total losses from identity fraud and scams estimated to be $47 billion.

Identity theft is one of the most common — and costly — consequences of a data breach. And today, with the help of AI tools and publicly available personal data, it’s easier than ever for criminals to steal your identity. So what does identity theft actually look like? Let’s break it down and look at how you can recognize the warning signs and protect yourself. 

What Is Identity Theft

Identity theft occurs when someone uses your personal identifying information (like your name, social security number, or credit card number) without your knowledge or permission. The purpose of identity theft is to commit fraud or other crimes.

Identity thieves gain financial advantages or other benefits, while victims suffer financial loss and possibly other severe consequences, including being accused of a crime they didn’t commit.

How Identity Thieves Grab Your Information

In the past, identity thieves used to steal wallets or purses to get IDs and credit cards. While this still happens, it’s far more convenient for thieves to exploit digital methods.

In 2024, 80% of data breaches were caused by cyberattacks, most of which involved personal information leaks. 64% of Americans have never checked to see if they were affected by a data breach.

So, here is how identity thieves steal your data nowadays:

• • Fill out change-of-address forms to forward mail, hoping to get your personal and financial information from your correspondence. For example, scammers find a loyalty card from your favorite store and have a new one issued to their address.
  • Skim information from ATMs – attackers place an electronic device over the ATM, and capture credit or debit card information
  • Grab personal information that was previously shared or posted on unsecured websites or public Wi-Fi networks.
  • Hack into your device using malware or spyware.
  • Buy personal information from a third-party source (e.g., a company employee who has access to your applications for credit).
  • Steal electronic records through a data breach.
  • Send phishing emails or fake text messages (aka smishing) specifically designed to steal sensitive information.
  • Trick users into installing fake apps that request access to personal information.

One of the newest ways identity thieves target victims is through AI-generated scams. Since ChatGPT’s launch in 2022, phishing volume has surged by over 4,000%, and deepfake impersonations are now being used to convincingly mimic people. In 2024, scammers used AI-generated video and voice to impersonate the CFO of a British engineering group and steal $25 million from the company.

AI makes these scams harder to detect by creating highly personalized, error-free messages and lifelike video or voice forgeries. Experts warn that AI-enabled fraud could cost up to $40 billion in the United States alone by 2027.

The Reason Behind Identity Theft

Once thieves get your information, they move on to the next phase of the identity theft process. 

Depending on what kind of information they’ve stolen, here are the most frequent purposes of identity theft:

• • To steal your money or benefits;
  • To sell your information on the dark web;
  • To impersonate you.

Let’s go through them one by one.

Steal Your Money or Benefits

If they have your credit card number, name, and address, a criminal may be able to make unauthorized charges to your credit card.

With more information on their hands, they might also be able to:

• • Get new credit cards in your name;
  • File a tax return to steal your tax refund;
  • Use your stolen airline miles;
  • Open a phone, electricity, or gas account;
  • Receive medical treatment using your health insurance information;
  • Apply for government benefits.

In 2024, Americans reported over $12.5 million in fraud losses, with more victims losing money than ever before. Imposter scams alone led to nearly $3 billion in losses, often by using stolen personal data to trick people into handing over money. 

Selling Your Info on the Dark Web

Many times, after a data breach, the exposed information is collected and passed along by a data broker before ending up for sale on the dark web. Recent reports show that social security numbers sell for around $4 each, while stolen credit card details typically go for $15 to $30, depending on the card type and whether PINs or additional credentials are included. American passports are one of the priciest items, selling for anywhere between $850 to $2,000. 

Impersonate You

An identity thief could create accounts using your name and personal details. Cybercriminals pretend to be you and use your info to rent an apartment, for instance.

Fraudsters often target people with a strong credit history and no criminal background.

In some cases, criminals combine real and fake information to create synthetic identities, which are then used to open credit lines or commit long-term fraud that’s harder to trace.

How to Uncover If You’re an Identity Theft Victim

Today, staying safe means taking online security seriously and keeping a close eye on your credit reports and physical mail. As the old saying goes, better safe than sorry.

Even public figures and top executives aren’t immune to identity theft. High-profile targets include celebrities, corporate leaders, and individuals with valuable digital footprints. Attackers use stolen personal details, fake social media accounts, and deepfakes to impersonate their victims, sometimes convincingly enough to fool employees, partners, or the public. Do you want to make sure you quickly figure out if you’re a victim of an identity theft scheme? Here are common signs you should take as a red flag:

• • You see unfamiliar charges on your credit card statement;
  • You receive medical bills for services you didn’t receive;
  • You get an information letter from the IRS telling you that more than one tax return was filed in your name;
  • You notice inaccuracies in your financial statements;
  • You no longer receive billing statements in your mail;
  • You’re denied credit unexpectedly;
  • You receive verification codes or security alerts you didn’t trigger;
  • Your social media or email account is suddenly locked or showing suspicious activity.

If you spot any of these warning signs, take action quickly. The Federal Trade Commission’s identity theft checklist has step-by-step guidance of what to do next.

12 Ways to Protect Yourself from Identity Theft

Tackling cybersecurity issues is a daily endeavor not just for businesses but for individual users, too.

But it doesn’t have to feel like a constant struggle. Think of it as building safe habits to protect your personal data. 

Here are some easy ways you can protect yourself against identity theft:

1. Create unique, complex passwords for each of your accounts and devices. Use a password manager to generate and store them securely. If you believe one of your accounts has been compromised, change the password of that account. 
2. Use a breach monitoring tool like CyberGhost ID Guard,  to check if your email addresses have been compromised and get an overview of your accounts. You can set up ID Guard alerts to be notified if your data appears in a link.
3. Enable two-factor authentication whenever possible. This way, even if your credentials leak, cybercriminals still won’t be able to access your data.
4. Only make payments or insert your personal details on secure websites whose addresses begin with an “HTTPS.”
5. Beware of phishing emails and smishing texts. Don’t click links, open attachments, or respond to communication from unfamiliar or untrusted sources, as they may contain malware.
6. Use a VPN for all your online activities to shield your digital identity and stop online tracking.
7. Set up alerts on your banking and credit card accounts. Ask your bank to notify you when there’s a withdrawal or unusual activity from your account.
8. Be very careful where and to whom you give out your personal information — especially when you receive an unsolicited phone call.
9. Watch out for AI-powered scams. Deepfake voice or video messages may impersonate someone you trust to trick you into sending money or sharing personal info. 
10. Don’t allow family members or friends to open accounts or sign up for credit cards using your information.
11. Shred or blackout anything before throwing it out. Make sure your credit card, bank or investment statements, and even your junk mail is destroyed before reaching the bin.
12. Freeze your credit. Contact the three major credit bureaus — Equifax, Experian, and TransUnion — to restrict access to your records. This protects you in a situation where an identity thief tries to use your data to open a new account.

What to Do If Your Identity Is Stolen

If you suspect your identity has been stolen, start by reporting it to the  Federal Trade Commission (FTC) at IdentityTheft.gov. The FTC will guide you through the rest of the process step-by-step. You can also file a report with your local police if needed. 

Next, contact any companies where fraudulent accounts were opened in your name. Ask them to close the accounts and confirm the fraud in writing. Then, set up a fraud alert with one of the major credit bureaus and request copies of your credit reports.

Identity theft happens every day, in more sophisticated ways than ever before. If you stay alert and act quickly, you can minimize the damage.