Social Security Administration statistics show that 73 million people receive benefits as of January 2025. Approximately 65.6 million beneficiaries receive only Social Security, 4.9 million people receive only Supplemental Security Income (SSI), and another 2.5 million benefit from Social Security and SSI.
Realizing that thieves have stolen your Social Security number can be terrifying. Identity thieves can open credit accounts, file fraudulent tax returns, and even commit crimes in your name. But don’t panic—acting quickly and strategically can minimize the damage. Financial experts outline 12 essential steps to help you regain control and safeguard your financial future.
Confirm the Theft
Did you know that identity theft happens every 22 seconds? The Federal Trade Commission (FTC) received 1.4 million reports of identity theft, including those involving stolen social security numbers. Confirm that your SSN has been stolen and misused before you take drastic measures.
Unfamiliar credit inquiries and accounts you did not open, as well as IRS notices about unfiled tax returns, indicate possible identity theft. AnnualCreditReport.com allows you to access your credit report for free to check for any suspicious activity. Immediately report any unusual findings that you encounter.
Place a Fraud Alert on Your Credit Report
Place a free fraud alert on your credit file by contacting either Equifax, Experian, or TransUnion. This notifies lenders to verify more before opening new accounts using your identity.
As per Experian, a standard fraud alert remains active for one year with an option for renewal, while extended fraud alerts have a duration of seven years. Contacting one credit bureau is sufficient because they will relay your fraud alert request to the remaining two. This additional security measure makes it more difficult for identity thieves to establish fraudulent accounts.
Freeze Your Credit
The most effective way to protect against fraudulent account creation is through a credit freeze. The credit freeze blocks everyone, including yourself, from starting new credit lines until you remove the freeze. You need to reach out to every credit bureau to set up a credit freeze, but it requires no payment.
Though initially inconvenient, it remains among the top protective measures you can take. The credit freeze can be temporarily removed when you apply for new credit lines. The FTC explains that placing and removing a credit card freeze costs nothing and does not impact your credit score.
Report the Theft to the FTC
AARP reported that identity fraudsters stole $43 billion from Americans in 2023. Visit IdentityTheft.gov to submit a formal identity theft claim with the Federal Trade Commission. You get a customized recovery plan and documentation to challenge fraudulent actions through this process.
The FTC report is evidence when dealing with creditors and law enforcement officials. An official report allows for a simpler restoration of your financial records. The FTC can also offer advice about further actions that you can take.
Contact the IRS
The United States had 363 incidents of tax fraud during fiscal year 2023, resulting in a median financial loss of $358,827. A fraudulent tax return filed using your SSN can cause a delay in your authentic refund. Reach out to the IRS Identity Protection Specialized Unit at 1-800-908-4490 and submit Form 14039 to document identity theft.
Once it receives this information, the IRS will mark your account to stop additional fraudulent activities. The IRS might provide you with a unique PIN to improve security on subsequent tax returns. Quick action prevents tax complications and delays.
Notify the Social Security Administration (SSA)
You must report the suspected misuse to the SSA despite their infrequent practice of issuing new SSNs. When someone uses your number for employment purposes, it can jeopardize your benefit entitlements. For assistance, contact the Social Security Administration by calling 1-800-772-1213 or your local office.
Keep the documentation of all communications to protect yourself when disputing future problems. Obtaining a new SSN is challenging, but the SSA offers guidance for fraud management.
Dispute Fraudulent Accounts and Charges
Contact the banks or lenders immediately if thieves have opened accounts with your name. Shut down fraudulent accounts by submitting your FTC identity theft report as proof. The Fair Credit Billing Act ensures consumers are not held responsible for unauthorized charges when they report them promptly.
Make sure to receive written confirmation once the fraudulent accounts are closed. Regularly check your credit report to verify that no unauthorized accounts have been created.
Monitor Your Bank Accounts Closely
Criminals can use your Social Security Number to gain access to your existing financial accounts. Make sure to review your bank statements regularly to detect any unauthorized transactions or modifications. Create alerts for unusual transactions in your account to detect fraudulent activity immediately.
Reach out to your bank immediately if you detect any suspicious activities. Regular monitoring can help prevent financial losses.
Secure Your Online Accounts
Hackers who obtain your SSN may gain access to additional personal information. Change the passwords for your bank accounts along with your email and e-commerce accounts. Implement multi-factor authentication (MFA) to reinforce security by adding a secondary verification step.
Zippia statistics show that Multi-Factor Authentication blocks 99.9% of automated cyberattacks today. Using unique passwords for each online account enhances security by minimizing risk exposure. Stay vigilant against phishing attempts through emails or messages that seek to collect additional personal information.
Watch for Signs of Medical Identity Theft
Stolen SSNs enable thieves to receive medical services or prescriptions by impersonating you. Contact your insurance provider without delay if you get bills for medical services that you did not receive. You should ask for an “Explanation of Benefits” to examine recent claims.
Notify healthcare providers of any inconsistencies and prompt them to fix these errors. Protect yourself from expensive medical identity theft by closely monitoring your insurance documents.
Be Wary of Scams Targeting Identity Theft Victims
Identity thieves frequently target individuals they know have previously been victimized by identity theft. Remain alert to fraudulent “debt collectors” who contact you via phone or email requesting money for bogus accounts. People who offer to fix your SSN for money are running scams.
No genuine organization will ever ask victims of identity theft to make initial payments to fix their problems. Always question requests for personal information and confirm their legitimacy before responding.
Consider Identity Theft Protection Services
To maintain constant protection against identity theft threats, you should sign up for an identity theft monitoring service. LifeLock, IdentityGuard, and Experian IdentityWorks monitor suspicious activities and can help with recovery.
Some services provide insurance specifically to cover expenses related to identity theft. Not everyone requires these services, but they offer peace of mind to their users. Review multiple service options to select a plan that matches your requirements and budget.
Disclaimer – The Finance Key does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. The inclusion of links to third-party content is not an endorsement by The Finance Key of such content or services. Please do your due diligence and use your discretion.
Disclosure: For transparency, this content was partly developed with AI assistance and carefully curated by an experienced editor to be informative and ensure accuracy.
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