Identity Theft Prevention: How to Protect Your Personal Information

Identity theft happens when someone steals your personal information to commit fraud. It can range from a new credit card opened in your name to a tax return filed without your knowledge, and the fallout can take months to undo.

The threat is real and growing. Identity theft reports rose in 45 states in 2025, according to FTC data analyzed by All About Cookies. This guide covers how identity theft happens, what it costs, and the steps you can take to protect yourself.

What is identity theft?

Identity theft is the theft of your personally identifiable information to commit fraud. It may range from getting medical care or opening a credit card in your name to stealing your bank account numbers or financial information to make withdrawals.

In other words, identity theft could impact every aspect of your life.

How common is identity theft?

According to the Federal Trade Commission (FTC), there were more than 1.1 million reports of identity theft received through the FTC's IdentityTheft.gov website in 2024. In 2025, per capita identity theft reports increased in 45 states. The problem may be even more widespread, as not every instance of identity theft or cybercrime is reported to the FBI.

Learn how to find out if someone is using your identity.

How do thieves steal identities?

There are several ways a thief or scammer may commit identity theft. This can include:

• Stealing mail that contains identifying details
• Deceiving you into providing your information, for example, by pretending to be romantically interested in you
• Looking over your shoulder to view your information or PIN number
• Stealing your phone, wallet, or purse
• Skimming your credit card number by placing a special reader in a card machine
• Pretending to be a company you do business with and asking for your personal details
• Intercepting your communications with others without your knowledge
• Using phishing schemes to direct you to fake websites and trick you into providing personal details
• Posing as an online merchant to collect your information or credit card details
• Sending spam text messages to prompt you to call or text back your information
• Going through your trash to find items that include your personal information
• Exploiting data breaches to access credentials stolen from companies you do business with
• Ransomware attacks that result in the public release of stolen employee or consumer data

Types of identity theft

Identity theft can take many forms depending on what information is stolen and how it's used. Common types include:

• Medical identity theft: someone uses your identity to receive healthcare or prescription drugs
• Tax identity theft: a fraudster files a tax return in your name to claim your refund
• Child identity theft: a thief uses a child's Social Security number, often going undetected for years
• Employment identity theft: someone uses your information to get a job, which can affect your taxes and work history
• Criminal identity theft: a person gives your name and information to law enforcement when arrested
• Synthetic identity theft: a thief creates a fake identity by combining your real information with fabricated details
• Home title theft: a thief fraudulently transfers the deed to your home without your knowledge.

What is the cost of identity theft?

Identity theft can result in serious, lasting damage. According to FTC data analyzed by All About Cookies, consumers lost $15.9 billion to fraud in 2025, a record high. For individual victims, the impact can include:

• Out-of-pocket financial losses
• Lost time while restoring your identity and recovering your credit or stolen funds
• Medical debt if someone commits medical identity theft to get healthcare
• Lost job opportunities when employers check your credit report or conduct background checks
• Denied loans due to damaged credit score
• Arrest for a crime you didn't commit

How to protect against identity theft

Avoiding the consequences of identity theft is vital. Here are some proven steps to protect your personal information and reduce your risk.

1. Review your credit reports

Reviewing your credit report is a good way to quickly find out if your information is being misused. Your credit report summarizes your credit history as well as:

• Your name, address, and birthdate
• Your Social Security number
• Any outstanding loans in your name
• The total amount of your debt
• Whether you've had late payments

2. Examine your credit card and bank statements

You should also check your bank and credit card statements. Withdrawals or charges you did not authorize, or a change of address you didn't request, are major red flags that someone else is using your cards or accessing your bank account.

3. Go over your bills

If you do not get the bills you expect, this could be because someone has stolen your identity and redirected your mail.

On the other hand, if bills show charges you don't recognize or if you get bills for utilities you didn't sign up for or healthcare you didn't receive, this is a strong indicator someone else is using your information.

4. Properly dispose of sensitive information

Dumpster diving and stolen mail are two common ways thieves may get your identifying information. If you are disposing of anything that has personal data, make sure to shred it first.

Likewise, you'll want to be careful with your sensitive documents. A lost Social Security card could make you vulnerable to identity fraud, so don't carry your card with you often. Instead, keep it somewhere safe to limit the potential impact of purse or wallet theft.

5. Use strong, unique passwords

Weak or reused passwords are one of the easiest ways for a thief to access your accounts. If a criminal gets hold of a password you use across multiple sites, they can try it against your bank, email, and anywhere else you're logged in. Using a password manager makes it easy to create and store strong, unique passwords for every account without having to remember them all. You can also learn more about how to create a strong password on your own.

6. Stay alert to phishing and online scams

Phishing is one of the most common ways criminals steal personal information. An attack may arrive as an email, a text message, or a fake website designed to look legitimate. If someone asks you to verify your Social Security number, log in through an unfamiliar link, or confirm account details out of nowhere, treat it as suspicious. Learn more about the most common online scams and how to spot them.

7. Run a free exposure scan

Many reputable services, such as Aura, Incogni, and OmniWatch, offer free exposure scans to help you stay on top of identity theft prevention. Data breach and dark web scans let you know if your email address is compromised and what next steps you can take to protect your data. Only use free scans from verified identity protection companies.

8. Use an identity theft protection service

Unfortunately, no matter how careful you are, your personal details could still fall into criminal hands. This may happen, for example, if you provide your information to a trusted company that gets targeted by hackers and becomes the victim of a data breach.

Since there is always a risk, it may be helpful to use an identity protection service that monitors for problems, scans the web for copies of your information, and helps you respond assertively and appropriately if something goes wrong.

Not all identity theft protection services are equal. Our team has hands-on tested the leading options, evaluating monitoring features, alert speed, insurance coverage, and recovery support. 

See our full best identity theft protection services roundup for tested picks across every budget, or read about how we test identity theft software to understand our methodology.

How credit monitoring helps prevent identity theft

Credit monitoring tracks your credit reports and alerts you to changes that could signal identity theft. According to an All About Cookies survey, 22% of people who monitor their credit have caught fraud, identity theft, or a reporting error. It's one of the most reliable early-warning tools available.

What credit monitoring does

A credit monitoring service watches your credit reports for changes like new accounts opened in your name, hard inquiries you didn't authorize, or sudden drops in your score. Most services send real-time alerts so you can act quickly if something looks wrong. Some identity theft protection services bundle credit monitoring with broader coverage like dark web scanning and Social Security number alerts.

How to check your credit reports

You're entitled to a free weekly credit report from Equifax, Experian, and TransUnion through AnnualCreditReport.com. Knowing how to read your credit report helps you spot anything unfamiliar before it becomes a bigger problem. Checking your own report is a soft inquiry and won't affect your credit score. See our breakdown of whether free credit reports are safe to use.

Credit freezes and fraud alerts

If you think your information has been compromised, two tools can limit the damage. A credit freeze prevents new creditors from accessing your report, which makes it much harder for a thief to open accounts in your name. A fraud alert tells creditors to take extra steps to verify your identity before extending credit. You can place a fraud alert on your credit report for free. Not sure which is right for you? See how a credit lock compares to a credit freeze.

What does identity theft protection offer?

There are both free and paid identity theft protection options. Here are some steps that identity theft protection services may take to help protect you.

1. Monitor your credit and identity. Identity theft protection services go beyond credit monitoring. In addition to tracking your credit reports, many services scan the dark web for your personal data, monitor your Social Security number, and alert you if your bank account information shows up in a breach. This broader coverage can catch threats that credit monitoring alone might miss.
2. Insure you against identity theft risk. Some identity theft protection services provide identity theft insurance to ensure you are not faced with out-of-pocket losses if you fall victim to fraud. Most top-rated services provide up to $1 million in identity theft insurance coverage as a base per person covered.
3. Aid your recovery from identity theft. Identity monitoring services may provide a recovery plan to guide you through reporting identity theft and having incorrect information removed from your record.

Bottom line

Identity theft is a growing problem, but there are real steps you can take to protect yourself. Reviewing your credit regularly, using strong passwords, staying alert to phishing, and knowing how to freeze your credit or place a fraud alert can all make a meaningful difference.

If you want more comprehensive coverage, our guide to the best identity theft protection services breaks down the top options. You can also explore more ways to prevent identity theft using free tools and habits.

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