As data from the FTC shows, 1.1 million Americans were reported victims of identity theft in 2022, while 2.4 million reported a type of fraud. Combined with other reports, these crimes cost the victims nearly $8.8 billion^[1]. To avoid falling victim to similar crimes, you need to be on the lookout for cyberattacks and personal data breaches and protect your personal information from falling into the wrong hands. 

Still, you may ask yourself—how do I know if my personal information has been stolen?

This guide will explain the ways cybercriminals can steal your personal information and the signs you should look out for. It will also introduce you to virtual cards and explain how they safeguard your payment card information from thieves and sneaky merchants.

Ways Someone Can Steal Your Personal Information

Cybercriminals may want to steal your personal information for various reasons, such as committing credit card fraud, opening new accounts in your name, or selling the information to other criminals. To get their hands on your valuable data, they may use the following methods:

• Phishing scams—Fraudsters may pose as a trusted entity, such as your bank or insurance company, and ask you to provide personal information via email or phone. They also often attach malicious links or files that, once opened, can install malware on your device to obtain sensitive data.
• Data breaches—Hackers often exploit vulnerabilities in a company's security systems to access sensitive customer data. They then sell this information on the dark web or use it for their own gain.
• Skimming—Data thieves may install devices, known as skimmers, on ATMs, gas pumps, or point-of-sale machines to capture your payment card information when you use them.
• Dumpster diving—Some criminals sift through trash to find discarded documents containing personal information they can steal.

6 Warning Signs Your Personal Information Has Been Stolen

If you experience any of the following, it could indicate that your information has been stolen:

1. Unauthorized transactions on your bank statement
2. Data breach alerts
3. Suspicious activity on your credit report
4. Missing mail or bills
5. Calls from collection agencies
6. Unexpected bills for products or services you didn’t order

Unauthorized Transactions on Your Bank Statement

Cybercriminals who get their hands on your payment card details often use them to make unauthorized purchases, withdraw cash, or transfer money to their accounts. As a result, you may find unfamiliar transactions on your bank statement or receive alerts for transactions that you didn’t initiate.

Data Breach Alerts

When a company you've shared your personal information with experiences a data breach, it may inform you of it via email, phone, or letter. The notification will often disclose what information was compromised, how the data breach occurred, and the steps you can take to protect yourself.

Suspicious Activity on Your Credit Report

Your credit report is a history of your financial activities, and it indicates how well you manage your debts. It contains information on all your credit accounts, including credit cards, loans, and mortgages. Some suspicious activities that may appear on your credit report include:

• Accounts you never opened
• Unfamiliar hard inquiries
• Incorrect personal information

Such activities can affect your credit score, resulting in the denial of loans, high interest rates, or difficulty opening new accounts.

Missing Mail or Bills

To prevent you from discovering their fraudulent activities on time, fraudsters may change your mailing address or divert your bills to a different location. As a result, you may stop receiving mail or experience delays in receiving statements for your financial accounts.

Calls From Collection Agencies

If a cybercriminal uses your personal information to open accounts and then fails to make payments, the creditors will come after you for delinquent payments. You may receive calls or letters from collection agencies, debt collectors, or the original creditors. If you don’t know what the calls are about, such communication could indicate that your data has been stolen.

Unexpected Bills for Products or Services You Didn’t Order

As part of their fraud schemes, criminals may use your personal information to order goods or services online. In this case, you may start getting unexpected bills for subscriptions, online purchases, or services you didn’t authorize or use. You may also receive delivery notifications for items you didn’t order.

What To Do When Your Personal Information Is Stolen

If you’ve experienced one of the warning signs and suspect your personal information has been stolen, here’s what you should do:

1. Contact your financial institutions
2. Place a fraud alert
3. Report identity theft to the FTC
4. File a report with the relevant authorities
5. Review your credit reports and dispute errors 

Contact Your Financial Institutions

If your debit or credit card has been compromised, contact your bank or credit card company immediately to cancel and freeze the card and request a new one. Monitor your account statements for any unauthorized transactions and report them promptly. Change your online account login credentials and enable two-factor authentication, if available.

Place a Fraud Alert

Contact one of the three major credit bureaus—Equifax, Experian, or TransUnion—and request to place a fraud alert on your credit report. This will notify creditors to verify your identity before approving any new accounts in your name. The alert is free and lasts for one year. Check out the table below for the credit bureaus’ contact information^[2]:

Report Identity Theft to the FTC

If you have evidence of criminals committing identity theft using your stolen info, file a report with the FTC through its online complaint assistant at IdentityTheft.gov or by calling 1-877-438-4338^[3]. The FTC will provide you with an identity theft affidavit, which you can use to dispute fraudulent accounts and transactions. It will also provide a recovery plan and guide you in reporting the theft to the appropriate authorities.

File a Report With the Relevant Authorities

Contact your local police department and file a report with them. You may be required to provide a copy of the identity theft affidavit from the FTC and other proof of the theft, such as credit card statements, bills, and IRS notices.

You should request a copy of the report, as you’ll need it as evidence when disputing fraudulent charges or accounts with your bank or card issuer. You can also report the theft to the Internet Crime Complaint Center^[4], which specializes in addressing online crimes. By doing so, you contribute to a broader investigation, potentially helping authorities track and take action against cybercriminals to prevent future incidents.

Review Your Credit Reports and Dispute Errors

Request a free copy of your credit report from each of the three major credit bureaus and review them for any suspicious activity or errors^[5]. If you find unauthorized accounts or inquiries, dispute it with the credit bureau and request to have it removed from your report. 

Ways To Protect Your Personal Information Online

To protect your personal information online from potential thieves, follow these tips:

• Use strong passwords—Make sure your passwords are at least 12 characters long and made up of combinations of upper and lower case letters, numbers, and special characters. If you need help generating unique and complex passwords for your online accounts, you can use a password manager like 1Password, LastPass, RoboForm, or Keeper. You should also enable two-factor authentication whenever possible to boost account security.
• Be cautious of phishing scams—Don't click on links or open attachments in unsolicited emails or text messages, as they may contain malware designed to steal your personal information. Also, make sure to only provide personal information on secure websites with a HTTPS connection.
• Use a VPN—When using public Wi-Fi, use a virtual private network (VPN) such as CyberGhost VPN, Avast VPN, or HideMyAss VPN to mask your IP address and encrypt your internet traffic. This reduces the risk of hackers intercepting your sensitive information.
• Consider a virtual card—Virtual cards come with randomly generated card numbers you can use for online purchases, reducing the risk of your actual financial information being compromised. While some major banks issue them, choosing a dedicated virtual card provider like Privacy means you’ll get robust security and advanced customization features.

Privacy Cards—Reduce the Amount of Personal Information Online

Privacy lets you connect your bank account or debit card and create virtual cards for online transactions. These cards work like regular cards, complete with a unique number, expiration date, and security code, and can be used with most ecommerce platforms that accept U.S. Visa^® and Mastercard^® payments.

As a PCI-DSS-compliant company, Privacy uses multiple security measures to protect user data, including bank-grade AES-256 encryption, firewalled servers, and two-factor authentication. These measures reduce the risk of unauthorized access, making it harder for hackers to obtain your personal information.

Other security protocols Privacy employs include:

• Real-time transaction alerts so you can monitor card usage and detect potentially suspicious activity quickly
• Regular third-party security audits to ensure compliance with industry standards
• Fraud investigation and chargeback protection for unauthorized transactions

An Overview of Privacy Cards and Their Features

Privacy allows you to generate Single-Use, Merchant-Locked Cards, and Category-Locked Cards. Learn more about them in the table below:

All card types allow you to set spending limits and pause and close cards at any time to reduce the risk of unauthorized payments—all without affecting the funding source. Privacy will decline all charge attempts that go over the limit and block future transactions on a paused or closed card.

Enjoy More Convenience With Privacy Cards

Privacy also offers the following convenience features to simplify virtual card management and streamline online shopping:

• 1Password integration—Privacy’s integration with 1Password allows you to store and manage your virtual cards and passwords from one convenient location.
• Browser extension—Compatible with Safari for iOS, Microsoft Edge, Google Chrome, Firefox, and Safari, the Privacy Browser Extension lets you quickly generate virtual cards and autofill them at checkout.
• Mobile app—With the Privacy App, which is available for both Android and iOS, you can monitor your card usage and receive alerts on your smartphone or tablet whenever your cards are used or declined.

Getting Privacy Virtual Cards

If you're a U.S. resident older than 18 with a checking account at a U.S. bank or credit union, follow these four steps to get a Privacy Card:

1. Sign up
2. Enter the details needed to verify your identity
3. Add a funding source (bank account or debit card)
4. Request a Privacy Virtual Card
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You can select either of the following four Privacy plans:

1. Personal—This plan is free for domestic transactions and comes with 12 new virtual cards per month. It offers secure Merchant-Locked & Single-Use Cards, mobile app and browser extension access, and all card spending controls.
2. Plus—At $5 per month, this plan gives you all Personal features and extends your monthly card limit to 24 cards. You can also generate Category-Locked Cards, share your cards and attach notes to them, and access priority support and live chat (Monday through Friday, from 9 a.m. to 5 p.m. ET).
3. Pro—This $10-per-month plan includes all Plus features and up to 36 new virtual cards per month. It offers fee-free foreign transactions and 1% cashback on eligible purchases (up to $4,500 per month).
4. Premium—For $25 per month, the Premium plan offers all Pro features and up to 60 new virtual cards per month.

References

^[1]FTC. https://www.ftc.gov/system/files/ftc_gov/pdf/CSN-Data-Book-2022.pdf, sourced September 30, 2024

^[2]IdentifyTheft.gov. https://www.identitytheft.gov/CreditBureauContacts, sourced September 30, 2024

^[3]FTC. https://www.ftc.gov/about-ftc/bureaus-offices/bureau-consumer-protection/our-divisions/division-privacy-and-identity, sourced September 30, 2024

^[4]IC3. https://www.ic3.gov/, sourced September 30, 2024

^[5]usa.gov. https://www.usa.gov/credit-reports, sourced September 30, 2024

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