Account takeover fraud: a thief uses your personal information to access your financial accounts and reroute your account communications in order to keep you in the dark. The thief might clean out your funds, request credit cards, or pose as you to borrow money.
Card-not-present fraud: crook uses your stolen credit card information to buy things online or on the phone. That way they can circumvent EMV cards since the card doesn't need to be physically present.
New account fraud: a new account is fraudulently opened in your name and you aren't aware of it because all account information is sent to the thief who created it.
W-2 fraud: a crook sends an official-looking email that purports to be from a company executive or the IRS, requesting W-2 or payroll data. These emails are designed to get information that can be used for crimes like filing fraudulent tax returns for refunds.
The most obvious ways to protect yourself from identity theft is to check your accounts often. Utilize account alerts and look at transactions to make sure they are yours. The more immediately a financial institution or credit card issuer is notified that fraud has occurred on an account, the sooner they can act to limit the damage. Early notification can also help limit your liability in some cases.
Other basic protections:
Don't use simple passwords. Create strong, unique passwords that use a mix of numbers, symbols, and letters. Avoid using common words, obvious passwords like "1234567" or personal information. Have different passwords for all accounts and utilize two-factor authentication.
Be sure to check your credit reports. Federal law requires each of the three major credit reporting agencies - Experian, TransUnion, and Equifax - to give you a free credit report at your request each year. You need to check your credit report to make sure the information is complete and up-to-date. If an identity thief uses your information to open a new credit card account in your name, for example, and doesn't pay the bills, the delinquent account is reported on your credit report. So check the history and status of your accounts.
Consider a freeze. Placing a credit freeze (aka security freeze) on your credit files lets you restrict access to your credit report, making it more difficult for thieves to open new accounts in your name. It doesn't stop a thief from accessing your existing accounts. Each state has its own rules about credit freezes and how much you pay for them. Contact the nationwide credit reporting companies for more info.
