What Is Identity Theft and Fraud?

Author

William Thompson
May 29, 2025

In partnership with

Let’s talk about something super important: keeping your money safe from people who want to steal it. You might have heard about identity theft and fraud before, but what do these things really mean, and how can you protect yourself? Don’t worry, I’ll break it down in a simple way. 

What Is Identity Theft and Fraud? 

Identity theft happens when someone steals your personal information and uses it to pretend to be you. Fraud is when someone tricks you to steal your money. 

How Do Thieves Get Your Information? 

  1. Phishing: This is when scammers send fake emails or messages pretending to be from a bank or another trusted place. 

  1. Skimming: Thieves can steal your card information using a device that they attach to ATMs or card readers. 

  1. Data Breaches: Sometimes, companies that store your information get hacked, and thieves steal lots of people’s info at once. 

  1. Dumpster Diving: Yes, some thieves go through trash to find personal documents that haven’t been shredded. 

How Can You Protect Yourself? 

  1. Use Strong Passwords: Make sure your passwords are hard to guess. Use a mix of letters, numbers, and symbols. Don’t use the same password for everything. 

  1. Be Careful with Personal Info: Don’t share your Social Security number, credit card number, or other personal info unless it’s necessary.  

  1. Shred Documents: Before you throw away any paper with personal info, shred it. Check Your Bank Statements: Regularly look at your bank and credit card statements to make sure there are no charges you don’t recognize.  

  1. Use Security Software: Install antivirus and anti-malware software on your computer and keep it updated.  

  1. Secure Your Devices: Use a passcode or fingerprint to lock your phone and computer. If they get lost or stolen, this makes it harder for someone to access your info. 

What to Do If Your Identity Is Stolen 

If you think someone has stolen your identity, don’t panic. Here’s what to do: 

  1. Report It: Contact your bank or credit card company and let them know. They can help you freeze your accounts to prevent more theft. 

  1. Change Passwords: Change the passwords on your accounts to something new and strong. 

  1. Check Your Credit Reports: Look at your credit reports to see if there are any suspicious activities. 

  1. Freeze your Credit: Freeze your credit with the 3 credit bureaus and only unfreeze it when you need it. 

  1. File a Report: File a report with the Federal Trade Commission (FTC) and your local police.  

Remember, protecting your finances is all about being careful and staying informed. By following these tips, you can make it much harder for thieves to steal your money and personal information. Stay safe out there! 

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