Identity theft happens when someone uses your personal information - like your Social Security number, name, or financial account details - without permission. Fraudsters can use this data to open credit accounts, make purchases, file taxes, or even get medical services in your name.

This isn't just a rare occurrence - it's happening more and more every year. In the first quarter of 2025 alone, the FTC received over 239,000 identity theft reports. Credit card fraud saw a particularly sharp rise, increasing by 49% year-over-year.
 

That's why it's important to understand the warning signs, know how to respond, and take steps to protect yourself before it happens.

How to Spot Identity Theft Early

The earlier you catch identity theft, the easier it is to stop the damage. Some common red flags may include:

• Unfamiliar credit card charges or new credit lines
• Denied loan or credit applications despite a good credit history
• IRS notices about tax returns you didn't file
• Debt collectors calling about accounts you never opened
• Medical bills for services you never received

Identity theft isn't always just a stolen credit card - it's often more complex. Synthetic identity fraud, where thieves combine real and fake information to create a new identity, now accounts for nearly 30% of all identity fraud cases. These can be even harder to detect.

More:Identity Fraud Statistics for 2025

What to Do If Your Identity Is Stolen

1. Report It

Start by visiting IdentityTheft.gov. This FTC site helps you create a recovery plan and provides documentation you'll need when working with financial institutions or law3 enforcement. Also:

• File a police report with your local department.
• If you're a victim of tax-related identity theft, submit IRS Form 14039.

2. Place a Fraud Alert or Freeze on Your Credit

Contact one of the three major credit bureaus - Experian, Equifax, or TransUnion - to place a fraud alert. The bureau you contact is required to notify the others. You can also request a credit freeze to block new accounts from being opened.

3. Notify Your Financial Institutions

Contact Listerhill (or your financial institution) and credit card companies immediately. Dispute unauthorized transactions and ask for new account numbers or cards as needed. In 2023, consumers who had new accounts opened in their names by fraudsters reported an average personal loss of $3,500, so it's critical to stop fraud fast.

More:How to Act Swiftly After Identity Theft to Minimize Damage

4. Secure Your Online Accounts

Change your passwords and turn on multi-factor authentication. Make sure to update login credentials for your email, banking apps, and any sites with saved payment methods.

5. Monitor Your Credit and Finances

Request a free credit report from a safe credit report site like AnnualCreditReport.com and review it carefully. Consider signing up for a credit monitoring service to keep an eye out for new activity in your name.

How to Prevent Identity Theft

Preventing identity theft isn't just about luck - it's about habits. Here are ways to protect yourself and your loved ones:

• Keep your personal information private. Don't give out your Social Security number or financial details unless you trust the source and initiated the contact.
• Watch out for phishing scams. Fraudsters often pose as banks, credit unions, delivery companies, or even the IRS. In recent years, scammers have even used AI-generated voice messages to trick people into giving up sensitive information.
• Shred sensitive documents. Anything with account numbers, medical info, or personal data should be destroyed before it hits the trash.
• Use strong passwords and enable two-factor authentication. Password managers can help you create and store complex passwords securely.
• Check your financial statements often. Early detection is key. The longer identity theft goes unnoticed, the more damage it can do.

Even children can be targets. A clean, unused credit file makes them attractive to identity thieves. Be proactive in monitoring your child's information, especially if your family's data has been involved in a data breach.

How to Report Identity Theft

If identity theft strikes, don't panic - consider taking these steps:

• File a report with the FTC at IdentityTheft.gov or call 1-877-438-4338. You'll get a step-by-step recovery plan and a certified Identity Theft Report.
• Report identity theft to your local law enforcement. Bring a copy of the FTC report, a government-issued photo ID, and any evidence of fraud.
• Place a fraud alert or freeze your credit. This prevents new credit from being issued in your name.
• Notify Listerhill, your bank or credit union, and credit card companies to dispute fraudulent charges and close affected accounts.

Resources for Listerhill Members (and Non-Members, Too)

If you're a Listerhill Credit Union member and your debit or credit card is lost or stolen, you can:

• Lock your card instantly using the LCU Cards App
• Call 1-888-918-7819 to report fraud or request a new card
• You can also call 256-383-9204 during service hours or visit our Support page.

Not a member? These steps still apply:

• Use IdentityTheft.gov
• Contact your financial institutions and credit bureaus quickly
• Monitor your credit and dispute unauthorized activity right away

Final Thoughts

Identity theft affects millions of people each year. In 2023, the FTC received nearly 1 million identity theft complaints - and that's just what was reported. Whether it's a phishing email or a data breach, criminals are finding new ways to steal information every day.

At Listerhill Credit Union, we believe knowledge is one of the best defenses. That's why our Scam & Fraud Center is full of tools and tips to help protect your information.

Remember: acting fast can save your credit score, your finances, and your peace of mind.