Make Yourself a Harder Target for Identity Theft

October is Cybersecurity Awareness Month — and it arrives just as holiday shopping is about to pick up. Online orders, sales promotions, delivery notices and account alerts give identity thieves plenty of opportunities to disguise fraudulent messages as routine communications. A link may lead to a counterfeit website designed to capture your password, credit card number or other personal information.

With more than 1.3 million identity theft reports filed through the Federal Trade Commission's reporting network in 2025, now is a good time to safeguard your personal data and learn how to respond if someone steals your identity.

At-Risk Data

A thief doesn't need to steal your wallet or physical Social Security card to do serious financial damage. Identity theft occurs when someone uses your personally identifiable information (PII) without permission.

Sensitive PII includes information that, if lost, compromised or disclosed without authorization, could cause "substantial harm, embarrassment, inconvenience, or unfairness to an individual," according to the U.S. Department of Homeland Security. Examples may include your:

• Social Security number,
• Driver's license or state identification number,
• Passport number,
• Financial account numbers, and
• Biometric information.

These items — when combined with other sensitive data, including birth dates, mailing addresses, email accounts and phone numbers — can be used by criminals to steal your identity and commit fraud.

How Identity Theft Happens

Criminals may obtain your personal data in many ways. For instance, they might:

• Buy data exposed in a security breach,
• Steal mail or documents,
• Install malicious software on a device, or
• Pose as a trusted organization.

During the holidays, fake retail websites and phony messages about purchases or package deliveries provide useful cover. You might, for example, receive an email or text asking you to click a link to correct a shipping address, pay a small redelivery fee or investigate a supposed charge — but the link instead sends you to an impostor's site.

After acquiring personal information, a thief could:

• Take over an existing account,
• Open a credit card or loan in your name,
• Obtain medical care or government benefits, or
• Seek employment using your Social Security number.

Some criminals combine real and invented information to create "synthetic" identities that may not be traced to a victim immediately.

Warning signs of identity theft include unfamiliar withdrawals or charges, bills for accounts you didn't open, collection calls about unknown debts, missing mail and unexpected changes to your credit report. A notice involving benefits you never requested, or income from an employer you don't recognize, may point to another form of identity theft.

Tax-Related Identity Theft

Tax-related identity theft commonly occurs when someone uses a stolen Social Security number or Individual Taxpayer Identification Number (ITIN) to file a fraudulent return and claim a refund. You may discover the problem when the IRS rejects your e-filed return because it has already received one using the same identification number.

Other warning signs include:

• An IRS authentication letter concerning a return you didn't file,
• A tax transcript or refund you didn't request, or
• A notice that someone created an IRS Online Account in your name.

An Identity Protection Personal Identification Number (IP PIN) can help prevent someone from filing a federal return using your identification number. This six-digit number is known only to you and the IRS, changes annually, and is available to anyone with a Social Security number or ITIN who completes the identity-verification process. Spouses and dependents may get their own IP PINs.

If the IRS contacts you about a questionable return, follow the letter's instructions. Taxpayers who know or suspect that someone used their information to file a federal return may need to submit Form 14039, "Identity Theft Affidavit." However, the IRS advises against filing the form merely because personal information was exposed in a breach. Contact your tax advisor if you're uncertain how to respond.

Warning for Parents and Guardians

Children can be especially appealing targets because their Social Security numbers generally aren't tied to established credit files that families monitor. Misuse may go unnoticed until a child applies for a student loan, apartment or first credit card.

Warning signs include:

• An overdue bill addressed to the child,
• An IRS letter concerning unpaid tax, or
• A denial of government benefits because someone else is using the child's Social Security number.

If a third party — such as a school or medical provider — requests your child's Social Security number, ask why it's needed, how it will be protected and whether another identifier will suffice.

Parents and guardians may request a free credit freeze for a child under age 16 from each nationwide credit bureau (Equifax, Experian and TransUnion). Minors who are 16 or 17 may request freezes themselves. A freeze is particularly valuable for a child because creditors usually have no legitimate need to access the child's file.

Schemes Targeting Deceased Loved Ones

Identity theft can even occur after death. Criminals sometimes gather information from obituaries and use it to apply for credit, access accounts or file a false tax return.

If a family member has recently passed away, consider steps to protect his or her PII. For instance, limit the obituary to the person's age or year of birth rather than a full birth date, and omit the home address and mother's maiden name.

Funeral directors usually report deaths to the Social Security Administration after receiving the deceased person's Social Security number. The surviving spouse or estate representative should confirm that this has been done and promptly notify financial institutions and other account providers.

The authorized representative should also follow the three credit bureaus' procedures for reporting the death and confirm that the credit files have been marked deceased. Review the deceased person's credit reports and financial statements for unfamiliar activity.

Tips To Strengthen Your Defenses

No single precaution can prevent every form of identity theft, but the following measures can make your PII harder to steal and help you detect misuse sooner:

Use long, unique passwords. Don't reuse passwords across accounts. A criminal who obtains a password will likely test it on your email, banking and retail accounts. A password manager can create and store strong credentials so you don't have to remember each one.

Turn on multifactor authentication. This safeguard requires another form of verification in addition to a password. Use it for email, financial, tax and social media accounts. When available, an authentication app or security key generally provides stronger protection than a code delivered by text.

Treat unexpected messages with suspicion. Don't use a link or phone number in an unsolicited email or text about a package, purchase or account problem. Instead, open the company's app, type its known website address into your browser or call the number on your statement. A legitimate bank or government agency won't ask you to move money to "protect" it.

Protect devices and records. Install operating system, browser and app updates promptly. Lock phones and computers when you aren't using them, and erase personal data before you sell or discard a device. Keep Social Security cards, tax records and other sensitive documents in a secure location and shred unneeded papers before disposal.

Freeze and monitor your credit. A credit freeze generally prevents new creditors from accessing your file, making it harder for a thief to open an account in your name. Freezes are free, don't affect your credit score and remain in place until you lift them. You must contact the credit bureaus separately to freeze all three files.

Review your credit reports regularly and investigate accounts or inquiries you don't recognize. Remember, a credit freeze doesn't stop someone from misusing an existing account, so keep checking bank and credit card activity.

Share less personal information. Question requests for your Social Security number and provide it only when necessary. Restrict access to social media accounts, decline connection requests from people you don't know and avoid quizzes that ask for details commonly used in security questions. Ask family members not to post information about you without permission.

Act Quickly if Identity Theft Occurs

If someone steals your identity, contact the fraud department of each affected financial institution or business and ask it to close or restrict the account. Change compromised passwords and review related accounts for additional activity. Then report the theft to the Federal Trade Commission and create a recovery plan tailored to the type of misuse involved.

You may place a fraud alert or security freeze on your credit files and dispute fraudulent information. Keep copies of correspondence and a record of calls, dates and case numbers. If the theft involves your federal tax account, respond to IRS correspondence using the contact information printed on the notice and contact your tax advisor promptly.

For More Information

Identity theft can create financial and tax problems that take time to untangle. Contact your financial advisor for additional guidance on preventing, detecting and reporting these schemes. A trusted professional can help you safeguard your data and minimize your risks and financial losses.

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