7 types of identity theft you should watch out for

Main types of identity theft

Identity thieves often mix and match various forms of identity fraud to maximize profits. Familiarize yourself with the main types of identity theft to recognize the signs before becoming a victim.

Financial identity theft

Financial identity theft is the most common identity theft that happens when someone steals your credit card details, bank account numbers, or Social Security number for financial gain. Once a criminal has enough information about you, they might open credit card accounts, take out loans, or drain your funds — all while pretending to be you.

Identity thieves may also commit fraud in your name, such as: 

• Account takeover fraud, when an identity thief gets your login details and takes control of your bank account. They can change your passwords, lock you out of your account, and even make purchases or transfers.
• Debit or credit card fraud, when a criminal uses your physical card or personal information to drain your money.
• Mortgage fraud, when identity thieves use your credentials to apply for real estate loans under your name.
• Friendly identity theft, when your friend or family member uses your identity to open credit accounts or take loans in your name.
• Crypto fraud, when scammers hack crypto wallets and create fake exchanges.

Noticing that a stranger has stolen your identity can be difficult. However, unfamiliar charges on your bank statement, calls from debt collectors about unfamiliar purchases, or getting locked out of your bank account may signal that you're a victim of identity theft.

How to protect yourself from financial identity theft

To protect yourself from financial identity theft, keep your Social Security number and bank details close. Never share them with untrusted parties and shred any documents containing your sensitive information before they go to the trash bin. 

Besides safeguarding your physical documents, set up strong and unique passwords for your online accounts. Also, check your bank statements regularly — if you see an unfamiliar charge, contact your bank immediately.

Medical identity theft

Medical identity theft happens when a thief uses your personal information to get medical services under your name or use your medical insurance. For example, a criminal can use your driver's license, Social Security card, or your health insurance policy number to get surgery. You probably won't know about this until you get a hefty bill. Plus, these unrelated procedures become your permanent medical record, which could get you misdiagnosed later.

How to protect yourself from medical identity theft:

• Keep your medical records and insurance information as private as possible.
• Never leave sensitive documents unattended and don't share your insurance details with anyone unless absolutely necessary. 
• Review your medical bills and insurance statements for unfamiliar charges. 
• Contact your insurance or medical providers to clarify if you notice something fishy.
• Be cautious about emails and phone calls asking for your medical information — scammers can be sneaky.

Child identity theft

Child identity theft happens when a criminal uses a minor's personal information to open credit cards or apply for loans — all before the child is old enough to drive. By the time they're ready to apply for their first credit card or a student loan, they might find out that their credit score has been wrecked by someone else. Sadly, in most cases, the thief is someone the child knows personally, like a family member or a close relative.

Usually, child identity theft comes to light only after the victim turns 18. But there are signs to watch out for earlier than that. If a child has a credit report, receives credit card offers in the mail, or gets government benefits denied, it could mean a criminal has stolen their identity.

How to protect your child from identity theft:

• Keep your child's Social Security number and birth certificate secure.
• Freeze your child's credit until they come of age. This will stop identity thieves from opening accounts in their name. 
• Teach your child about how important it is to protect their personal information.

Criminal identity theft

Every form of identity theft is a criminal deed, but criminal identity theft is a whole different level. It happens when a thief uses your personal information when caught committing a crime. So, instead of their name on the arrest warrant or investigation, it's yours. Imagine this nightmare — you try applying for a job, renting a place, or traveling and you're flagged as a criminal.

How to protect yourself from criminal identity theft:

• Keep your documents as private as possible. We might sound like a broken record, but keeping information like your Social Security number under lock and key is the cornerstone of protecting yourself against identity theft.
• Be cautious about whom you're handing over your documents (even when renting apartments or cars or applying for a job).
• Get an identity theft protection service like NordProtect. It will send you alerts and notifications if it detects data leaks or suspicious credit activity. Each alert will inform you about the steps you need to take to protect yourself.

Identity cloning

Identity cloning is a type of identity theft where a stranger takes your entire identity and pretends to be you. They steal your Social Security number, passport details, and even fingerprints or facial recognition and open fraudulent accounts, make purchases, get a driver's license, or even travel — all while posing as you.

How to protect yourself from identity cloning:

• Keep your personal information secure. 
• Don't overshare on social media, and make sure your passwords for online accounts are strong and unique — the harder it is for hackers to access your data, the safer your identity is. 
• Enable two-factor authentication for your online accounts for extra security.

Synthetic identity theft

Synthetic identity theft combines real and fake information to create a whole new false identity. For example, thieves can pair your Social Security number with a fake name, birthdate, and other details. The result is a brand new "person" who can apply for credit cards and loans or commit fraud. 

How to protect yourself from synthetic identity theft:

• Make sure your Social Security number stays private. 
• Keep an eye on your credit card statements to catch strange charges.
• Check credit reports belonging to seniors and children in your household.
• Use strong and unique passwords.
• Enable two-factor authentication to help you secure your online accounts.
• Regularly check your credit reports to spot unfamiliar charges.
• Protect your data with NordProtect, which scans the dark web to detect if criminals are selling your information.

Tax identity theft 

Tax identity theft is when someone uses your Social Security number to file a fraudulent tax return. Scammers get your personal information through phishing emails, data breaches, or even old-fashioned mailbox theft and file for a tax return early in the season before you have a chance to submit yours. They get your refund, and you're left trying to prove that you didn't get any money.

How to protect yourself from tax identity theft:

• Submit your tax return as early as possible to prevent someone else from laying hands on your application.
• Keep your Social Security number under lock and key.
• Enable two-factor authentication for your online tax account and your email account.
• Avoid using public Wi-Fi to submit your tax return application.
• Shred sensitive documents before tossing them into the trash bin.