How to Prevent Identity Theft from Happening

We all know someone who’s dealt with a burglary, a stolen package, or an email account that got compromised in a data breach. But someone whose identity was stolen entirely? That’s a less common story, which is exactly how identity thieves like it: kept out of everyday conversation and off most people’s radar.

The reality is that identity theft is remarkably common. The Federal Trade Commission has received well over a million fraud reports and hundreds of thousands of identity theft reports in a single six-month stretch in recent years.

The good news is that identity thieves aren’t criminal masterminds. They’re opportunists relying on predictable tactics, and most of those tactics can be defended against with some fairly basic precautions.

What Is Identity Theft?

Think of identity theft as someone making a copy of your house key, except instead of your house, it’s your entire financial life. Criminals gather enough of your personal information, your Social Security number, birthdate, maybe your mother’s maiden name, to effectively become you. Once they have it, they might open new credit cards, take out loans, or file a fraudulent tax return in your name. Often they change the mailing address on these new accounts, so you have no idea it’s happening until real damage has been done, usually when you’re denied credit or a debt collector calls about a bill you never incurred.

Never share your Social Security number, birthdate, or driver’s license number over the phone. No legitimate organization asks for that information this way, only scammers do.

Where Fraud Reports Come From

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| Fraud Type | Share of Reports |

| Imposter scams | Largest single category |

| Online shopping | Second largest |

| Internet services | Significant share |

| Business and job opportunities | Notable share |

| Investment-related scams | Notable share |

| Telephone and mobile services | Smaller share |

| Health care | Smaller share |

| Prizes, sweepstakes, and lotteries | Smaller share |

Social media is consistently one of the most common points of contact between scammers and victims across virtually every age group.

How to Protect Yourself

Get comprehensive monitoring. A good identity theft protection service consolidates monitoring into a single dashboard rather than requiring you to separately check three credit bureaus, your bank, and everywhere else your information lives. If something does go wrong, look for a service that offers real support, ideally certified restoration specialists who can deal directly with creditors on your behalf, along with meaningful insurance coverage for stolen funds and related expenses.

Bundle in digital security tools. Many identity protection plans now bundle a VPN, antivirus software, and a password manager alongside monitoring, which helps close off some of the most common ways thieves actually get your data in the first place.

Use a VPN and antivirus software. Identity monitoring alerts you after something’s gone wrong, but it can’t stop a hacker from grabbing your data off an unsecured connection in the first place. A VPN encrypts your internet traffic so that even on public Wi-Fi, like at a coffee shop, hackers can’t intercept your passwords or card numbers. Good antivirus software can also warn you before you click a malicious link or land on a fake storefront.

Enable two-factor authentication. Turning on 2FA for your important accounts means a thief needs more than just your password, they’d also need access to your phone, which stops most account takeover attempts cold.

Shop Carefully

Online shopping fraud costs consumers tens of millions of dollars every year, and the losses tend to spike during the holiday season. The warning signs are usually visible if you look closely: prices that seem too good to be true, websites riddled with spelling errors, or sellers who only accept payment through gift cards or wire transfers. Legitimate retailers don’t operate that way. When in doubt, stick to established retailers or verify an unfamiliar seller through the Better Business Bureau before entering your payment information.

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| :-: | :-: | :-: |

| Age Group | Common Contact Method | Typical Loss |

| 20 to 29 | Social media | Around $500 |

| 30 to 39 | Social media | Around $492 |

| 40 to 49 | Social media | Around $482 |

| 50 to 59 | Social media | Around $482 |

| 60 to 69 | Social media | Around $500 |

| 70 to 79 | Phone call | Around $800 |

| 80+ | Phone call | Around $1,500 |

Watch Your Bank Statements

Waiting for a monthly paper statement to catch fraud is a thing of the past. Most banking apps can alert you instantly whenever your card is used, so turning on push notifications is one of the simplest things you can do. Banks use automated fraud detection too, but it isn’t perfect, it can miss a thief who deliberately keeps charges small to avoid detection. You’re often the first line of defense simply by noticing a subscription or purchase you don’t recognize.

The Takeaway

No home is completely burglar-proof, which is why so many of us use security systems anyway. The same logic applies to identity theft. Protecting yourself doesn’t require becoming a cybersecurity expert, it’s mostly about layering a few smart defenses: broad monitoring to catch problems early, a VPN and antivirus software to secure your devices, and a healthy dose of skepticism whenever you’re shopping or sharing information online.

Frequently Asked Questions

What does an identity theft protection service do? It monitors your personal information across sources like credit bureaus, the dark web, and public records, and alerts you the moment something suspicious happens, like a new credit card or loan application in your name.

How much does identity theft protection cost? Most reputable individual plans run $8 to $35 a month, with family plans typically costing $15 to $60 a month for more comprehensive coverage.

Do I need a VPN? It’s a good idea, especially if you regularly use public Wi-Fi. Identity monitoring alerts you after the fact, but a VPN helps prevent your data from being intercepted in the first place.

What is phishing? Phishing is when a scammer sends a deceptive email or text containing a link to a fake website designed to steal your personal information.

How can I protect older loved ones from identity theft? Much the same way you’d protect anyone else. Have an honest conversation about how scams typically work, check in on their accounts periodically, and consider identity theft protection built with seniors in mind.