Identity Theft

Identity theft happens when someone uses your personal or financial information without your permission. According to the Federal Trade Commission, thieves may use a stolen name, Social Security number, bank or card numbers, or medical insurance numbers to open new credit cards, run up charges, open utility accounts, steal a tax refund, get a job, or get medical care in your name.

The FTC's official reporting site is IdentityTheft.gov, which gives victims a free personal recovery plan and pre-filled letters to send to credit bureaus, businesses, and debt collectors. Filing a report there creates an FTC Identity Theft Report, which can help you block fraudulent information on your credit report and stop collection on debts you did not create.

Identity theft sits behind two big categories of class actions. The first is data breach lawsuits, where people whose information was exposed sue the company that failed to protect it. Those cases often settle for credit monitoring plus reimbursement of documented losses, and people who can show actual fraud usually receive more than those who cannot. The second is credit reporting lawsuits under the Fair Credit Reporting Act, where credit bureaus allegedly kept reporting fraudulent accounts after victims disputed them.

If you get a breach notice, freeze your credit, save the letter, and keep records of any fraud and the time you spent fixing it. See what to do after a data breach notice, our data breach lawsuit page, and credit report error lawsuits if fraudulent accounts stayed on your report after you disputed them.