What is identity theft?
Identity theft occurs when someone uses your personal information — such as your name, national insurance number, or financial details — without your permission to commit fraud, open accounts, or make purchases in your name.
Last reviewed: 10 June 2026
Explanation
Identity theft encompasses a wide range of frauds, but the unifying element is the misuse of someone's personal information without consent. Criminals may use your identity to open credit card accounts, take out loans, file fraudulent tax returns, rent property, receive medical treatment, or create false employment records.
Personal data is obtained through data breaches at companies holding your information, phishing attacks, SIM swapping, physical theft of documents, dumpster diving, or purchasing stolen data on dark-web markets. A single breach can expose enough information to facilitate multiple types of fraud.
Identity theft can go undetected for months or years. Victims often discover it when they are rejected for credit despite good finances, receive bills for purchases they did not make, or are contacted by debt collectors about accounts they did not open. The damage to credit ratings and the process of proving fraud and clearing your name can take months of work.
Regular credit report checks and fraud alerts are the most effective early-detection tools. Where available, a credit freeze prevents new accounts from being opened in your name without your explicit consent — it is free in many jurisdictions and does not affect existing credit.
Common red flags
- Credit or loan applications rejected despite no known financial problems
- Unfamiliar accounts, charges, or enquiries appearing on your credit report
- Bills, letters, or collection calls about accounts or purchases you did not make
- Your tax return is rejected because one has already been filed in your name
- Receiving unexpected credit cards, welcome letters, or statements in the post
- You stop receiving regular mail — a redirect may have been set up in your name
What to do now
- Place a fraud alert or credit freeze with all three major credit bureaus immediately
- Order copies of your credit reports and review for unfamiliar accounts or enquiries
- Report to your national identity theft authority (IdentityTheft.gov in the US)
- Contact any affected financial institutions directly using numbers on their official websites
- File a police report — you may need this as evidence when disputing fraudulent accounts
- Change passwords for email and financial accounts
Frequently asked questions
What is the difference between identity theft and identity fraud?
Identity theft is the act of stealing personal information. Identity fraud is using that stolen information to commit a crime. In practice the terms are often used interchangeably, but the distinction matters legally — some jurisdictions treat the theft and the fraud as separate criminal offences.
Does a credit freeze affect my existing accounts?
No. A credit freeze only prevents new credit being opened in your name. Your existing credit cards, loans, and accounts continue to function normally. You can temporarily lift the freeze when you need to apply for legitimate new credit.