Most Common Identity Theft Scams & How to Avoid Them
Identity theft scams use deception to steal your personal information, financial details, and online accounts. Learn to spot the latest scam patterns and protect yourself and your loved ones from fraud.
Table of Contents
Quick Facts
About this scam type
Identity theft scams use tricks and manipulation to gain access to your sensitive information, such as Social Security numbers, bank accounts, or login credentials. Scammers may pose as trusted organizations or create fake emergencies to pressure you into sharing details. Once they have your information, they can steal your money, open fraudulent accounts, or take over your identity.
How scammers contact victims
Email is a favored channel for identity thieves because it allows them to send convincing messages that appear to be from banks, government agencies, or companies. Many emails include links to fake websites or attachments containing malware. Other channels like phone calls and text messages are also widely used to reach a wide audience.
Who is most at risk
Identity theft scams can target anyone, but older adults, busy professionals, and people unfamiliar with the latest digital threats are especially at risk. Seniors may be less familiar with online security, while those under stress or distraction are more likely to fall for urgent or emotional appeals.
Understanding the risk level
Falling for an identity theft scam can cause major financial losses and long-term damage to your credit and reputation. Victims may spend months or years cleaning up the mess. Fast action is required to stop further harm and recover stolen identity or money.
Most Common Identity Theft Scams
How it works: Scammers send emails or text messages that look like alerts from your bank, credit card provider, or a trusted company. These messages claim your account is in trouble, asking you to click a link or enter your credentials. The link often leads to a fake site designed to steal your details.
Common Phishing Email
Dear Customer, Your account has been suspended. Click here to restore access or your funds will be frozen. Typical Smishing Text
Chase: Unusual activity detected—log in at secure-chase-alerts.com to verify now. Red Flag Signs:
- • Unfamiliar sender address or phone number
- • Urgent requests for personal information
- • Links that do not lead to the official website
- • Poor grammar or misspelled words
- • Generic greetings like 'Dear Customer'
How it works: Fraudsters call or email pretending to be from the IRS, Social Security Administration, or Medicare. They claim you owe money, there is a problem with your benefits, or threaten legal consequences unless you provide personal information right away.
Real Example (2024 Tax Season)
This is the IRS. Your Social Security number will be suspended due to unpaid taxes. Call us immediately to avoid arrest. Red Flag Signs:
- • Immediate threats of arrest or legal action
- • Requests for Social Security or Medicare numbers
- • Demands for payment using gift cards or wire transfers
- • Caller ID spoofing official agency numbers
- • Insistence on secrecy or not telling loved ones
How it works: Scammers try to steal one-time passcodes (OTP) sent to your phone or email by banks or other services. They may call, pretending to be support, and urgently ask you to share the code for 'verification.' If successful, they log into your accounts and change your passwords.
Account Takeover Attempt
Hi, this is your bank. We are verifying your identity. Please tell us the 6-digit code you just received. Red Flag Signs:
- • Requests for security codes or OTPs
- • Unexpected verification calls
- • Claiming to be from your bank without proper authentication
- • Pressure to act quickly
- • Caller unable to confirm account details
How it works: Criminals gather enough information about you to convince a mobile provider to transfer your phone number to their SIM card. This lets them intercept security codes, reset your accounts, and lock you out.
SIM Swap Fraud Script
Hello, I lost my phone. Can you activate my number on a new SIM? My name is Jane Smith, and my date of birth is 4/15/1955. Red Flag Signs:
- • Sudden loss of phone service
- • Bank or account notifications of password changes
- • Unable to receive calls or texts
- • Unusual messages from your mobile provider
- • Multiple fraud alerts in a short time
How it works: Scammers post fake job ads, apartment listings, or loan offers to collect your Social Security number, bank details, or other identity data. After you share your information, they disappear—or worse, use your details for fraud.
Fake Job Scam Email
Congratulations! You are hired. Please fill out this form with your Social Security number and bank information to start. Bogus Rental Application
To secure the rental, send your ID, Social, and first month’s rent. The keys will be mailed after payment. Red Flag Signs:
- • Offers that seem too good to be true
- • Requests for sensitive documents or payment before meeting anyone
- • Email addresses that do not match company or landlord names
- • Refusal to meet in person or do a video call
- • Pushing for quick decisions
How it works: You get a text or call from someone who claims they dialed the wrong number, then quickly engages you in conversation. Over time, they may build trust and ask for personal details or money, or direct you to dangerous links.
Typical Wrong-Number Text
Hi, is this Emily? Sorry, wrong number. But you seem nice—can I ask you something? Red Flag Signs:
- • Unsolicited messages from strangers
- • Attempts to build false rapport or gain sympathy
- • Requests for personal or financial information
- • Persistent follow-up despite your reluctance
- • Links to unknown websites
Red Flags & Warning Signs
Top 5 Phrases Scammers Use
- 1 "Act now or your account will be closed"
Creates an artificial sense of urgency so you do not pause to think.
- 2 "We need you to verify your identity immediately"
Designed to pressure you into giving up sensitive information.
- 3 "You owe money or face arrest/legal action"
Scares you into complying by threatening legal trouble.
- 4 "Send your password, PIN, or security code"
Legitimate companies never ask for these details.
- 5 "Do not tell anyone about this call/message"
Scammers want to isolate you from getting advice or support.
Scam Warning Signs
- Generic greetings like 'Dear Customer'Scammers rarely know your real name or account details.
- Unexpected links or attachmentsMay lead to fake sites or install malware.
- Threats of immediate consequencesIntended to force quick decisions out of fear.
- Misspellings, grammar errors, or strange formattingProfessional organizations proofread their communications.
- Requests for sensitive data over email, text, or phoneLegitimate companies ask you to log in securely on their official website.
Legitimate Communications
- Personalized messages using your real nameShows the sender actually knows your identity.
- Official contact from published phone numbers or domainsLegitimate organizations use known channels.
- No rush to act immediatelyAuthentic messages encourage careful review and allow time for questions.
- No requests for sensitive data in messagesCompanies direct you to secure websites or voicemail for private information.
- Clear, professional writing and formattingReputable organizations use proper spelling and grammar.
How to Protect Yourself
Simple habits can keep your personal information and identity safe from scammers. Share these steps with family, especially older relatives, to build good security routines.
- 1. Never Share Personal Details in Unexpected Messages
Ignore requests for your Social Security number, bank info, or passwords received by email, text, or call unless you initiated the contact. If in doubt, contact the company directly using their official website or phone number.
Save official company websites in your browser bookmarks for quick, safe access.
- 2. Check Where Messages Actually Came From
Pause and look at the sender's email address or phone number. If it looks odd or does not match the company, it is probably a scam.
- 3. Enable Two-Factor Authentication on Important Accounts
Add two-factor authentication (2FA) to your bank, email, and social media for extra protection. This way, even if scammers get your password, they need a second code to access your account.
- 4. Use Strong, Unique Passwords and Avoid Reusing Them
Choose long, unique passwords for each account. Consider using a password manager to store your passwords securely.
- 5. Shred Documents That Contain Personal Information
Shred bank statements, credit card offers, and medical paperwork before discarding them to block dumpster divers.
- 6. Warn Family and Trusted Friends
Let loved ones know about new scams and encourage them to ask questions if they receive suspicious messages.
Sign up for Lifeguard digital safety monitoring to protect your whole family from identity theft and scams.
What to Do If You're a Victim
Quick action can limit the damage if your identity has been stolen. Follow these steps to regain control and reduce harm.
- 1. Contact Your Bank and Credit Card Companies Immediately (Do immediately)
Call the customer service or fraud number on the back of your cards. Explain what happened, freeze your accounts, and dispute any unauthorized charges.
- 2. Report Identity Theft to the FTC (Do immediately)
Go to IdentityTheft.gov and follow instructions to create a personal recovery plan. You will receive pre-filled forms and helpful checklists.
- 3. Place a Fraud Alert on Your Credit Reports (Within 24 hours)
Contact one of the three major credit bureaus (Equifax, Experian, or TransUnion) to request a fraud alert on your credit file. This warning makes it harder for new accounts to be opened in your name.
- 4. Change Passwords on All Important Accounts (Within 24 hours)
Immediately update your passwords for bank, email, and financial accounts. Use strong, unique passwords.
- 5. File a Police Report if You Lost Money (Within 1 week)
Contact your local police to file a report if you suffered financial loss or ongoing harassment. Keep a copy of your report for future reference.
- 6. Monitor Credit and Account Activity
Regularly check your bank accounts and credit reports for new activity. Consider enrolling in identity monitoring services for ongoing protection.
For more recovery help, visit <a href="https://www.identitytheft.gov" target="_blank">IdentityTheft.gov</a> or call the Federal Trade Commission at 1-877-438-4338.
Frequently Asked Questions
Scammers use phishing emails, fake texts, phone calls, data breaches, or even mail theft to steal personal details. They often impersonate trusted organizations to trick you into sharing sensitive information.
Unfamiliar charges, new credit accounts you did not open, sudden drops in your credit score, or calls about debts you do not recognize are common warning signs.
Never respond directly. Contact the company or government agency using contact details from their official website, not the suspicious message.
Teach them not to share personal information over the phone, text, or email unless they are sure of who they are talking to. Regularly review their statements and set up account alerts for suspicious activity.
Report the theft to the Social Security Administration and the FTC. Place a fraud alert on your credit reports and watch for fraudulent activity.
File a report at IdentityTheft.gov, contact your bank, and notify the three major credit bureaus. Local law enforcement can help if you have lost money or feel threatened.
A credit freeze blocks most new credit accounts in your name, but it does not stop all types of fraud. Keep monitoring your accounts and stay alert for signs of scams.