July 31, 2026
Identity theft: What it is and how to help protect yourself
Learn how identity theft happens, what warning signs to watch for, and what to do if your information is stolen.
Key takeaways
- Identity theft happens when someone uses your personal information, without permission, to commit fraud.
- Most cases start with phishing, impersonation, stealing data, or information shared under pressure.
- Criminals often combine data from multiple sources, including stolen mail, social media, public records, data breaches, and personal information bought and sold on the dark web.
- Credential theft is when criminals steal usernames, passwords, or one-time codes to access accounts.
- Warning signs may include unfamiliar transactions, new accounts, missing statements, or unrequested password resets.
- If your identity is stolen, contact your bank, place a fraud alert or credit freeze, and report it at IdentityTheft.gov.
Identity theft is one of the most common forms of consumer fraud. It’s a crime that often stays hidden for months until the red flags start to pop up: a statement for a credit card you never opened, a new loan in your name, or account activity you don’t recognize.
“Criminals are no longer just breaking into computers; they are trying to break into your life by stealing your identity,” said Sarah Gosler, Wells Fargo cybersecurity leader and expert in human-centric defense.
Consumers filed more than 1.1 million identity theft reports with the FTC’s Consumer Sentinel Network in 2024 (PDF). The good news is that many follow familiar patterns, so knowing what to watch for can help you spot trouble sooner.
How identity theft happens today
Rather than a dramatic headline of a massive data breach, identity theft may begin in an ordinary moment, when someone is distracted, rushed, or caught off guard.
“It often starts with a phishing email, a deceptive text message, or a phone call from someone pretending to be your bank or a government agency,” Gosler said. Criminals create urgency to force you to act without thinking. “Their goal is to trick you into sharing just a few key pieces of information, like your Social Security number or a password,” she said.
“It’s easier for fraudsters to manipulate a person than it is to break into a secure system.”
Fraudsters may stitch together details from stolen checks, utility bills, account statements, social media, and data bought and sold on the dark web. They’re using AI to gather and organize it faster. Their goal? To get enough information to take the next step, whether that’s gaining access to your accounts, resetting passwords, or using your information to open new accounts in your name. “It’s easier for them to manipulate a person than it is to break into a secure system,” Gosler said.
According to Javelin’s 2024 Child & Family Cybersecurity Study, scam and fraud victims are often targeted more than once because compromised financial and personal information often remains unchanged. Once it’s stolen or exposed, it can be reused repeatedly by criminals.
This pattern of contact, deception, and information sharing often leads to stolen credentials and, in many cases, identity theft.
Credential theft: a common entry point for identity theft
Credential theft happens when criminals use stolen usernames, passwords, or one-time codes to get into accounts. Because so many people reuse passwords, one compromised login can unlock multiple personal accounts. “If they steal your credentials for one site, they’ll often try it everywhere, so it becomes a master key across multiple accounts,” Gosler said.
That’s why each person on a bank account must have a unique online profile. Even shared accounts should never use a single login.“Reusing the same password is like having one key for your house, car, and office, and then leaving copies everywhere,” Gosler said.
You can also reduce your risk by turning on multifactor authentication and setting up account alerts. Review your bank and credit card statements regularly. Keep your contact information up to date so you can receive security notifications.
Preventing credential theft is one of the most effective ways to reduce your risk of identity theft.
How your digital footprint increases your risk
Your digital footprint, from social media activity to account logins and browsing history, can help criminals build a profile of you over time. Details shared in one place can be combined with information from another, making it easier to guess passwords, answer security questions, or reset accounts. The more information that’s available, the easier it is to piece together enough to get into your accounts or steal your identity. Limiting your digital footprint is a key way to protect yourself from identity theft.
A few habits can help minimize your exposure and make it harder to build a profile in your name:
- Be mindful of what you share publicly, especially on social media.
- Use strong, unique passwords for every account.
- Turn on multifactor authentication wherever available.
- Set up account alerts so you can spot unusual activity early.
- Check your credit report and account statements regularly.
“Consumer awareness is a critical component of strong cybersecurity,” Gosler said. Small changes to how you manage your information can make it harder for criminals to use it against you.
Signs of stolen or compromised personal information
These red flags may appear at different stages of identity theft or account takeover.
Signs of identity theft
- You stop receiving bills or statements in the mail or online.
- You notice unfamiliar withdrawals, accounts, or activity on your credit report.
- You receive an alert for a credit card you didn’t apply for.
- You receive an IRS notice about a duplicate tax return in your name or from employers you do not recognize.
Signs of credential theft
- You receive a password reset text or email you didn’t request.
- You notice login alerts or account activity from a device or location you don’t recognize.
What to do if your identity is stolen and how to report it
If you notice signs of credential theft, acting quickly can prevent it from turning into identity theft.
- Contact your bank through a trusted channel, or report fraud to Wells Fargo.
- Place a fraud alert or credit freeze.
- File a report at IdentityTheft.gov.
- Use the Identity Theft Assistance Kit (PDF) as your checklist.
Understanding child identity theft
Children can be uniquely vulnerable because their information isn’t actively used or monitored, which gives criminals time to use it without detection. In many cases, the damage isn’t discovered until years later, when it shows up in places you might not expect.
Learn more about child identity theft and how to protect your child.
From security features to advanced AI and machine learning to detect fraudulent or high-risk activity, Wells Fargo invests significantly in fraud, scam, and identity theft protection and prevention, as well as customer education. Learn more about staying on top of your account security.
FAQ
Many of the same warning signs listed above can indicate identity theft. Common examples include:
- Transactions you don’t recognize
- Accounts or credit cards you didn’t open
- Password reset alerts you didn’t request
These issues may not appear immediately, so monitor your accounts regularly.
Identity theft is a leading type of consumer fraud in the United States. Millions of cases are reported each year, with financial losses reaching into the billions.
Common types of identity theft include account takeover, opening new accounts in your name, tax fraud, and child identity theft.
You can protect yourself from identity theft by using strong, unique passwords, turning on multifactor authentication, creating individual online bank logins for each person on a bank account, monitoring your accounts regularly, and setting up alerts for unusual activity. Consider placing a credit freeze or fraud alert with the credit bureaus if you notice suspicious activity.
Check your credit reports regularly for unfamiliar accounts or activity. The more frequently you check, the easier it is to spot problems early and respond quickly.
Credential theft is when scammers steal your login information, such as usernames, passwords, or one-time codes. Identity theft occurs when that or other personal information is used to commit fraud, such as accessing accounts, opening new ones, or making unauthorized transactions.
