Definition
When someone uses your personal information, such as your name or Social Security number, to open accounts, file taxes or get benefits.
What it means
Identity theft can involve new credit cards or loans in your name, use of your existing accounts, a fake tax return filed to steal a refund, or medical or government benefits claimed under your identity. Warning signs include bills for things you did not buy, debt collection calls for unknown debts, unfamiliar accounts on your credit report and IRS letters about a return you did not file. The FTC's IdentityTheft.gov creates a personal recovery plan and an identity theft report you can use with businesses and credit reporting companies. Common steps are to contact the affected companies, place a fraud alert or credit freeze, review your credit reports and change passwords. The IRS offers an Identity Protection PIN to anyone who can verify their identity.
Example
A person who sees a $3,000 store card they never opened on their credit report files a report at IdentityTheft.gov, freezes credit at all three companies and disputes the account.
Illustrative numbers only. Your situation will differ.