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How to Protect Yourself From Identity Theft

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The most effective protection against identity theft is free: freeze your credit at all three bureaus, turn on two-factor authentication or passkeys for email and financial accounts, use a password manager so every password is unique, and get an IRS Identity Protection PIN. If it happens anyway, report it at IdentityTheft.gov, which builds a personal recovery plan.

The stakes are rising. In March 2026 testimony to Congress, the Federal Trade Commission said consumers filed about 3 million fraud reports in 2025 and reported losing $15.9 billion, up from about $12.5 billion in 2024.

1. Freeze your credit

A credit freeze stops lenders from pulling your credit report, which blocks most attempts to open new accounts in your name. According to the FTC:

  • It is free to place and lift under federal law.
  • You must contact each bureau separately: Equifax, Experian and TransUnion.
  • A freeze requested online or by phone must be in place within one business day, and a lift within one hour.
  • It does not affect your credit score or your existing cards.

Example: you freeze all three in January, which takes perhaps 20 minutes. In June you apply for a car loan. You ask the lender which bureau it uses, lift that one freeze online for a few days, and it is open within an hour. When the window ends, the freeze returns. Total cost: $0.

2. Know the difference with fraud alerts

A fraud alert does not block access to your report; it tells businesses to verify your identity before opening credit. You only need to contact one bureau, which must notify the other two. A standard alert lasts one year and can be renewed free. Identity theft victims can get an extended alert that lasts seven years. Many people use a freeze for prevention and add a fraud alert after a known breach.

3. Lock down your logins

  • Start with email. Your email is the reset key for everything else, so protect it first.
  • Turn on multifactor authentication (MFA). The Cybersecurity and Infrastructure Security Agency (CISA) says a second factor makes accounts much harder to take over even if a password leaks. An authenticator app or security key is stronger than text-message codes.
  • Use passkeys where offered. Passkeys replace passwords with a credential stored on your device and are designed to resist phishing, because there is no code to hand over.
  • Use a password manager. It creates long, random, unique passwords so one breached site does not unlock the rest.

4. Learn the shape of a phishing attempt

Imposter scams were the most reported fraud type in 2025, with more than 1 million reports and over $3.5 billion in reported losses, according to the FTC. The warning signs repeat:

  • Urgency or fear: “your account is locked,” “a warrant is out,” “your grandson is in jail.”
  • Requests for a one-time code, password, Social Security number or payment by gift card, wire, crypto or payment app.
  • Links or attachments you did not expect, even from familiar names.

The safe habit: hang up or close the message, then contact the company using a number or app you already trust.

5. Get an IRS Identity Protection PIN

An IP PIN is a six-digit number that prevents anyone else from filing a federal tax return with your Social Security number or ITIN. The IRS says anyone with an SSN or ITIN who can verify their identity can get one, including dependents, and a new PIN is issued each year. The fastest route is your IRS online account. This is U.S.-specific, and it closes a door that a credit freeze does not cover.

6. Keep watch

  • Review your free credit reports at AnnualCreditReport.com for accounts you don’t recognize.
  • Turn on transaction alerts for bank and card accounts.
  • Read medical “explanation of benefits” statements for care you never received.

If your identity is stolen

IdentityTheft.gov lays out the first steps:

  1. Call the fraud department of each company where fraud occurred, and ask them to close or freeze the accounts.
  2. Change logins, passwords and PINs for affected accounts.
  3. Place a free fraud alert with one bureau and review your credit reports.
  4. Report it to the FTC at IdentityTheft.gov or 1-877-438-4338. You get an Identity Theft Report and a recovery plan, with pre-filled letters if you create an account.

Disputes can take weeks to resolve, and a frozen bank account still leaves bills to pay. An emergency fund buys you that time. If you are building credit, How to Build Credit covers the basics (lift a freeze briefly before each application), and the Security Wealth guide covers the rest of your safety net.

Common questions

Is a credit freeze free?

Yes. Federal law makes it free to freeze and unfreeze your credit at Equifax, Experian and TransUnion. You need to contact each bureau separately.

Does freezing your credit hurt your credit score?

No. A freeze does not affect your score or your existing accounts. You will need to lift it temporarily before applying for new credit.

What is the difference between a credit freeze and a fraud alert?

A freeze blocks most access to your credit report. A fraud alert leaves access open but asks lenders to verify your identity first. A freeze is stronger; an alert is easier because one call covers all three bureaus.

What should I do first if my identity is stolen?

Contact the companies where fraud happened to close or freeze accounts, change your passwords, place a fraud alert with one credit bureau, and report it at IdentityTheft.gov to get a recovery plan.

Related guides

Sources

  1. Credit Freezes and Fraud Alerts — Federal Trade Commission
  2. IdentityTheft.gov - Recovery Steps — Federal Trade Commission
  3. Get an identity protection PIN — Internal Revenue Service
  4. More than a Password — Cybersecurity and Infrastructure Security Agency
  5. FTC testimony: JEC hearing on the rising scam economy — Federal Trade Commission, March 2026

This guide is for informational and educational purposes only. It is not financial, medical, legal, or tax advice. Consult a qualified professional for guidance specific to your situation.

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