Is Your Identity At Risk? 5 Signs To Look For After A Data Breach – Forbes Advisor

These days, our personal information is everywhere—from online shopping and social media to government databases and healthcare records. With so much sensitive data living across various online platforms, what does this mean for your identity and the risk of identity theft following a data breach?

Due to recent major breaches, like the National Public Data breach that exposed billions of personal records and millions¹ of Social Security numbers, the risk of identity theft has significantly increased. In fact, LifeLock reports that 75% of Americans have had their Social Security numbers exposed due to recent data breaches.

When personal data is stolen or exposed online, it doesn’t just disappear. This information is often sold for cheap on the dark web, allowing criminals to exploit your identity for profit. With the right mix of personal details, identity thieves can create chaos, potentially leading to financial losses, damaged credit and emotional distress for their victims.

So, is your identity at risk? Here are five signs to watch out for after a data breach.

1. Unusual Transactions on Bank or Credit Card Statements

One of the clearest signs that your identity may be at risk is if you notice unfamiliar transactions on your bank or credit card statements. In 2023 alone, more than 416,000 cases of credit card fraud were reported to the Federal Trade Commission (FTC), making it the most common form of identity theft. Thieves often test your financial data with small transactions to see if it will go undetected, then move on to larger purchases.

Financial accounts are primary targets for identity thieves because they provide instant access to cash and valuable goods. To minimize your risk, consider setting up alerts for transactions over a certain threshold and regularly reviewing your statements for any irregularities.

Identity theft protection services are helpful in this area. For instance, LifeLock lets you monitor multiple accounts in one place, alerting you to suspicious activity on your checking, savings and 401(k) accounts. Depending on your plan, it also offers up to $3 million in identity theft insurance coverage, which can help recover stolen funds and cover legal fees if your identity is compromised.

2. Unexpected Changes to Your Credit or Loan Activity

Another strong indicator of identity theft is a sudden drop in your credit score, unauthorized credit inquiries, new loans you didn’t apply for or declined loans you would normally qualify for. Here’s what you can watch out for:

• New accounts or loans: If accounts or loans appear on your credit report that you didn’t open, it could be a sign that someone is fraudulently using your identity.
• Unauthorized credit inquiries: If you notice that lenders are checking your credit when you haven’t applied for anything recently, it might be due to identity thieves shopping around for loans with your personal details.
• Rapid decrease in your credit score: A sudden drop could be a sign that thieves have already taken out lines of credit and missed payments using your name.
• Surprise loan denials: A declined loan that you would normally qualify for could indicate unpaid fraudulent accounts or recent negative credit activity related to identity theft.

While you can now get a free credit report weekly, identity theft protection services offer ongoing credit monitoring and alert you when suspicious activity occurs. LifeLock Ultimate Plus™ monitors all three credit bureausᅳEquifax, Experian and TransUnionᅳgiving you a full view of your credit status to help you catch fraudulent activity earlier.

If you suspect fraud, consider placing a credit freeze. This restricts access to your credit report, preventing new accounts from being opened without your permission. This can be a powerful tool to prevent identity thieves from opening fraudulent accounts in your name while you work to resolve the issue. For instance, LifeLock Ultimate Plus offers a credit lock on your TransUnion credit file, providing an extra layer of protection for your credit.

3. Receiving Bills for Services You Didn’t Use

Receiving bills for services or products you didn’t purchase can also indicate that your personal information has been compromised, stolen and used. Medical identity theft is one of the most common types of fraud in these cases—someone may use your healthcare insurance to receive treatment or buy prescriptions, leaving you with the bill and potential discrepancies in your medical records. Similarly, if debt collectors start calling about accounts you don’t recognize, someone may have opened fraudulent service accounts in your name.

Working with LifeLock’s personal restoration specialists can simplify the process by helping dispute charges, contacting creditors and working with government agencies on your behalf to restore your identity. LifeLock also offers a restoration guarantee, meaning that if they can’t restore your identity to good standing, the company promises a full refund—up to 12 months of your subscription payment.

4. Rejected Tax Returns or Filing Issues

Tax identity theft happens when criminals use your stolen Social Security number to file fraudulent tax returns and claim refunds with your identity. This is becoming an increasingly widespread issue. In 2023, the IRS flagged 1.1 million tax returns as potentially fraudulent.

Receiving a notification from the IRS about a duplicate return is often the first sign of tax-related identity theft. Other signs may include:

• Unexpected IRS mail regarding refunds or tax transcripts
• Income reported from unknown employers or jobs
• Changes in filing status, deductions or dependents
• Locked IRS account due to suspicious activity

To protect yourself, consider applying for an IRS Identity Protection PIN, which can help prevent unauthorized tax returns. Identity theft protection services can also help monitor your Social Security number for fraudulent use, potentially helping you catch issues before they cause any tax filing headaches.

5. Lost Access to Online Accounts

If you suddenly can’t log in to your online accounts, such as email or financial websites, it could mean an identity thief has gained access and changed your login credentials. This type of account takeover can compromise sensitive personal information across multiple accounts and lead to unauthorized financial transactions.

If this happens, consider these steps:

• Contact the affected company immediately for assistance.
• Change your passwords for all online accounts.
• Consider enabling two-factor authentication (2FA) and using a password manager for stronger protection.

Identity theft protection services with dark web monitoring can alert you if your personal information is being sold on the dark web, enabling you to act quickly and protect your accounts.

Protecting Your Identity

Now that our data lives in so many places, it’s difficult enough to keep track of where it’s stored and much less whether it’s been exposed in a data breach. You can start by looking at where your data lives online with LifeLock’s free Personal Data Exposure Scan. This tool scans millions of data points to help you identify where your sensitive information might be publicly accessible, highlighting potential risks and giving you a clearer understanding of your online vulnerability.

Information leaks can happen to anyone at any time, regardless of age, gender or income level. While companies are legally required to notify you of data breaches, they may not always provide detailed information, and many people don’t realize the extent of their exposure until it’s too late.

“With LifeLock, you get proactive protection against data breaches, giving you peace of mind knowing that our restoration experts and Million Dollar Protection Package are there to support you if you do fall victim, guaranteed,” says Ian Bednowitz, General Manager of LifeLock.

¹ This data is based on findings from LifeLock in partnership with Constella.