Identity Theft Impacts More than Your Finances

The trying aftermath of identity theft disrupts more than your finances.

Identify theft — which happens when someone fraudulently uses your personally identifiable information for their personal or financial gain — is on the rise. More than 40 million U.S. consumers were victims of identity theft, resulting in over $52 billion stolen from Americans¹. But having your identity stolen may create additional challenges beyond potential financial losses.

Lost Time

It takes considerable time and effort to resolve the issues created when your identity is stolen. That can include shutting down credit cards and bank accounts, dealing with credit score bureaus to clear your name, and countless other concerns. In fact, in 2022, nearly 1 in 5 victims spent six to 12 months resolving their identity theft incident and more than one-third of 2021 victims had not resolved their issue after a year.²

Emotional Toll

Victims of identity theft become more worried and fearful following the theft. Stress levels soar and trust declines. In 2022, 4 out of 5 victims said their worry and anxiety increased because of an identity theft incident, and more than half reported suffering a loss of trust.²

Physical Problems

The effects are physical as well, affecting sleep and general health. 90% of identity theft victims in 2022 said they had sleep problems as a result, and 40% suffered persistent aches, pains or headaches after the incident.

How to Protect Yourself from Identity Theft

Fortunately, there are steps you can take to make identity theft less likely to happen.

• Password-protect your devices. Use strong passwords, including a long mix of letters, numbers, and symbols.
• Set up multi-factor authentication (MFA). MFA significantly enhances the security of digital accounts and systems by adding an additional layer of protection beyond just using a strong password.
• Sign up for bank alerts. You will be notified by email, text message, or phone call if your bank suspects fraudulent activity has occurred on your account. Your bank may also offer no-cost fraud monitoring services.
• Review your credit report regularly. You can get a free copy of your credit report from major credit bureaus Experian, Equifax and TransUnion. You may also be able to monitor your credit through your financial institution or personal financial apps.
• Evaluate what you share on social media. Many people share information, such as the names of their children and pets, or other personal information they also often use as passwords. When available, opt-in to double authentication for your social media platforms.
• Shred sensitive documents. Not all identity theft occurs online. Physical documents, including bank and credit card statements, invoices, old photos and IDs can provide valuable information for identity thieves. Shredding documents makes it hard to access your personal information.
• Use antivirus software. Given online activities like shopping and banking, plenty of your sensitive financial data is potentially at risk. Installing antivirus software on your computer or tablet can detect and protect against viruses and spyware.
• Keep personal documents in a secure place. Make sure that documents with highly sensitive personal information, such as Social Security cards, birth certificates and passports are stored and protected in a fireproof lock box.

¹ Javelin Strategy & Research, 2022 Identity Fraud Study, The Virtual Battleground
² Identity Theft Resource Center, 2022 Consumer Impact Report

The Hartford Steam Boiler Inspection and Insurance Company provides The Cincinnati Insurance Companies with a variety of support services, including call center assistance, collaborative claims service and risk mitigation materials.

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local, independent insurance agent for coverage advice and policy service.