Key insights:
- Identity theft is very common and can lead to false charges on your accounts and negative impacts on your credit
- You can find out if your identity has been stolen by reviewing your credit reports and bank statements for unfamiliar activity and setting up credit monitoring or fraud alerts
- If your identity has been stolen, you should contact your card issuers and financial institutions immediately, and report it to the Federal Trade Commission (FTC)
Identity theft happens when someone uses your personal, sensitive information without your permission. There are more than 6 million identity theft cases each year. Identity theft can happen without warning and may go undetected if you're not actively monitoring your information and financial activity. Failing to detect it quickly can lead to mounting problems, from unauthorized charges on your credit card to loans taken out in your name. It's important to know how to check if someone is using your identity.
Let’s discuss how you can monitor your personal information and what to do if you discover that it has been compromised.
How do I check for identity theft?
There are a few different ways to check if someone is using your identity, including:
- Reviewing credit reports from all three major bureaus: Federal law entitles you to a free copy of your credit report every year from each of the three major credit reporting bureaus. You can request a copy from each bureau to see if there's unusual activity on your report. You may also check your credit report once a week for free online.
- Checking bank and credit card statements for suspicious activity: If you start seeing charges on your statements that you didn’t make, then a scammer may have access to your accounts
- Setting up credit monitoring or fraud alerts: Your financial institution and credit card issuers may help warn you of potential fraud by sending you emails, text messages or alerts on their app. Citi offers free credit monitoring on all accounts and credit cards.
Sometimes, it's not your own actions that detect identity theft, but something that happens to you. For instance, if you start receiving mail about loans and credit cards that you did not request, or you're denied for a legitimate loan application that you feel you should qualify for, it's possible scammers have hurt your credit by opening accounts or overusing your lines of credit.
What do I do if my identity is stolen?
Once you realize your identity has been stolen, there are several steps you may take to prevent further damage:
- Contact affected companies or financial institutions: Card issuers and financial institutions may be able to help by freezing your accounts and letting you change your PINs and passwords
- File a report with the Federal Trade Commission: Visit the FTC’s website to report credit card fraud and identity theft and receive detailed instructions about how you should proceed
- Consider filing a police report: The police may be able to assist you with finding the perpetrator of your identity theft, potentially returning your stolen funds and preventing the criminal from acting again
- Place a credit freeze with all major bureaus: A credit freeze prevents new accounts from opening in your name, which could further damage your credit score
- Update passwords and secure compromised accounts: Updating all of your passwords for your accounts and creating a 2-factor authentication system may prevent scammers from stealing from you in the future
How do you reduce your risk of identity theft?
There are some precautionary measures you can take to help ensure that you don’t fall victim to identity theft. Some best practices include:
- Using strong, unique passwords: Your identity can be stolen through digital accounts you make, so consider creating a strong and unique password to prevent hackers from accessing your sensitive information online.
- Monitoring your credit regularly: Reviewing credit reports for unusual activity might allow you to catch an identity thief early, preventing more damage in the future.
- Verifying public Wi-Fi for sensitive transactions: If you’re using a public Wi-Fi connection, check that it’s encrypted. You can look for a lock symbol in your browser or check that your URL starts with “https”. If it’s not encrypted, your sensitive data might be at risk.
- Limiting how and where you share personal information: It's a good idea to not carry around your Social Security card or view other personal data in public. You never know when someone might be looking to start an identity theft scheme.
Protecting your identity and taking the next steps
Although identity theft is a frightening possibility, there are ways to prevent it and mitigate it if it happens to you. Taking necessary steps like protecting your accounts with strong and unique passwords and keeping sensitive data private may help prevent identity theft. If you do suspect your identity has been stolen, reporting it to the authorities and credit bureaus may be able to stop scammers from causing more harm.
If you think you could be a victim of identity theft, report it to the FTC and contact a financial expert for more help protecting your accounts.
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
