Definition

The fraudulent use of someone’s personal information, often to open accounts or make purchases. It’s important to protect your personal data to avoid this.

What to consider

  • Be vigilant by checking your financial statements often.
  • Use strong passwords and monitor your credit regularly.
  • Know the steps to take immediately if you suspect fraud.

Real world scenarios

  • Suspecting identity theft, Alvaro places a fraud alert on his credit reports and changes all online passwords.
  • Kayla sees a suspicious loan inquiry she never initiated. She promptly locks her credit to prevent new accounts from opening.
  • Rob files an identity theft report with the FTC, then works with each credit bureau to clear unauthorized charges on his record.

Related terms

Insurance & Financial Protection