Your credit dramatically affects what you qualify for in a mortgage. 

Today's world is infected with identity theft. Learn to recognize if you have been a victim of identity theft and protect yourself.  

 Signs of Identity Theft

There are many ways identity theft can affect you, and there are several warning signs it is currently happening to you. Thankfully, if you can identify that fraud is developing, you can take action. 

Your tax return was rejected

If you received a rejection notice from the IRS due to a duplicate return, that typically indicates someone has stolen your identity and fraudulently filed a return in your name. 

You see test charges on your credit card statements

If you have noticed small amounts under five dollars that do not seem familiar, someone has likely gotten a hold of your private information. Identity thieves often test a stolen credit card to ensure it is active by making small purchases. Once the credit card is approved, the thieves charge larger purchases. 

You have been approved but at a high-interest rate

If you have a stellar credit rating but have been charged a higher-than-normal interest rate, that is a sign you may be a victim of identity theft. 

If you are rejected for a loan, that is an instant alert of identity theft; however, victims often receive approval only at a much higher-than-expected interest rate. 

There are charges on your account that aren't authorized

Pay close attention to charges on your bank and credit card accounts. If you see a charge you do not recognize, that is a flashing warning sign of identity theft. It is vital you check your bank accounts and credit cards regularly. 

Protecting Your Identity

To protect yourself from identity theft, you must be proactive. The more barriers you build to protect yourself financially, the better. 

Be cautious of phishing scams

Never click on any emails that seem suspicious. Phishing is a cyber attack thieves use to gain your private data. 

These emails, at first glance, seem like they are coming from your bank or a store you may have purchased from. These emails may ask you to click a link that will install malware, allowing them to gain access to all the information on your device.  

Other phishing scams may note you have made a large purchase. These emails are a scare tactic where the victim calls a number and gives account information over the phone. Find the company's phone number and call them if you haven't made a purchase.

Do not give personal information over the phone

Identity thieves often pose as a credit card company or bank on the phone. 

Your bank or credit card company will never call or ask you for personal information, such as your social security number. 

It is important to note that the IRS will only call you if you have been in contact with them. IRS scams have become popular among thieves.

Fraudsters often scare their victims into giving information with threats of jail time or law suits. If you receive a call like this, immediately hang up and call the institution the thieves are claiming to be from. 

Check your credit report frequently

Your credit report will include all activity on any accounts in your name. This is an easy way to check for suspicious activity, like an unfamiliar account on the report. 

Signing up for alerts through companies such as Credit Karma or Experian will alert you through email that an account has been set up in your name. Visit annualcreditreport.com for a free credit report. 

Staying Proactive Lowers Your Chance of Identity Theft

Unfortunately, identity thieves are here to stay, so you must protect yourself from fraudsters. Taking steps to protect your identity makes it more difficult for thieves to target you.