4 signs you're a victim of identity theft (and what to do about it)

While you might think identity theft would never happen to you, it's unfortunately an all-too-common, growing problem. In the first half of 2023 alone, there were about as many identity theft reports as there were in all of 2019, according to the Federal Trade Commission (FTC).

Across all fraud types, including identity theft, the median loss is $541 this year, the FTC says. But even if you recover your losses, the time and stress can add up. Worse, you might face challenges like getting denied when trying to open a new account or loan, or you might face credit issues without realizing it.

Plus, identity theft, along with other financial crimes, often gets underreported. Javelin Strategy & Research finds much larger numbers: In 2022, 15 million U.S. consumers faced traditional identity fraud losses that added up to $24 billion, or an average of $1,600 per person.

So don't assume you won't become a victim of identity theft. Stay vigilant by looking for identity theft signs. Learn how to protect your identity with LifeLock here today.

4 signs you're a victim of identity theft

If you've experienced one or more of the following then you may be a victim of identity theft.

Unexpected bills or charges

If you're getting bills from retailers, car dealers or anywhere else for something you didn't buy, that's a red flag.

These bills or charges could happen in several ways. For example, someone might obtain your credit or debit card info and start making fraudulent purchases, in which case you likely want to dispute those charges and report them as fraud to your financial institution and potentially law enforcement. 

Someone might also use your information to receive services like medical care and then the bill gets sent to you.

"You should protect your personal information, check medical bills and statements, and report questionable charges or fraud," says the U.S. Department of Health and Human Services Office of Inspector General.

LifeLock can also help you fight back against identity theft. Learn more about how it works here.

Incorrect credit report items

Another stolen identity clue is if you see incorrect items on your credit report. Note that this is the only source authorized by the government for accessing free credit reports.

If you never took out a certain car loan or opened a particular credit card, for example, but those show up on your credit report, then that could mean you're an identity theft victim.

If that happens, you can put a fraud alert on your credit report from the three major credit bureaus, which makes it harder for new accounts to be opened in your name. You can also put a freeze on, which would block new accounts from being opened, as the FTC explains.

In addition to looking for accounts, see if you have unexpected credit inquiries or addresses on your credit report, notes Experian. From there, you can file a police report and work with a credit bureau to resolve the issue.

To protect your identity and catch fraud early, you can also use protection services like LifeLock, which can alert you of suspicious activity before you might see it yourself on your credit report.

New accounts unexpectedly opened in your name

Your credit report isn't the only place where you might find new accounts that you don't think you opened.

For example, the Texas Attorney General shares a story about a Houston police lieutenant who had trading accounts opened in his name three times.

If something like that happens to you, the identity thief might commit securities fraud in your name or trigger tax consequences. So, look for emails and letters about new accounts, and if you didn't open them, consider contacting those companies for clarification (find contact information directly on their website to reduce the risk of falling for a phishing scam), along with potentially taking steps like freezing or putting fraud alerts on your credit reports and contacting law enforcement.

Here too, an ID protection service like LifeLock can alert you about new accounts opened in your name. That way, you can quickly see if something potentially fraudulent has occurred, before it snowballs into a larger issue.

Incorrect tax-related documents

Getting tax-related documents like an errant W2 or finding out that your tax return has more income than you thought you reported might seem like a good thing. After all, isn't it good to make more money? The problem is that these could be identity theft signs, and you won't see an income increase.

"Identity thieves often steal your identity by reporting income that does not belong to you and then cashing in on a tax return. Look out for notifications that a tax return has been filed under your name," says the Los Angeles County Department of Consumer and Business Affairs.

Tax-related identity fraud can even include in-person scams. Someone might pose as an IRS agent and show up at your home to pressure you into giving up valuable information or even making an unnecessary payment.

To reduce this risk, the IRS announced in July 2023 that it ended unannounced visits in all but rare instances.

Stay vigilant when it comes to other forms of communication too. "Scammers, posing as IRS employees use emails, text messages, and phone calls to trick unwitting victims," explains LifeLock. However, the IRS says that it will typically first contact taxpayers via a letter or notice.

Learn more about how LifeLock can protect your identity here today.

The bottom line

These are just a few of the many ways that identity theft can occur. In general, being careful about who you give your personal information to and watching for unexpected charges or activities in your name can help you reduce identity theft risk.

Still, it's hard to manage identity theft protection on your own. New technologies make it easier to scan the internet, including the dark web, to proactively identify where you're at risk. Purchasing an identity theft protection service like LifeLock can go a long way toward reducing your risk of identity theft, limiting the fallout if identity fraud occurs, and overall giving you more peace of mind.