12/9/2025

Shopping online for the best deals this holiday season? Even if you only buy gifts in person, your data could still be at risk. Between data breaches, email and text scams, and other cybercrimes, identity theft is on the rise.

The National Association of Insurance Commissioners (NAIC) and the National Insurance Crime Bureau (NICB) share how you can keep your identity safe and the role insurance plays in your protection and recovery.

What is identity theft? 

Identity theft occurs when someone uses or tries to use your personal information without permission. Criminals may try to open accounts, submit false insurance claims, or commit other crimes in your name. In 2024, the Federal Trade Commission (FTC) received nearly 10 percent more identity theft reports than in 2023. 

How can I prevent identity theft and protect my information?

Use multifactor authentication and strong passwords. Multifactor authentication adds an extra layer of security to help prevent unauthorized access. Consider using a password generator and manager to create unique, strong passwords for each account.

Ignore suspicious calls, texts, emails and social media messages. Do not answer calls or respond to messages from unfamiliar people or numbers. Be skeptical of people claiming to have information about your loved ones. Legitimate organizations will not pressure you for money or personal information. Look for spelling and grammar errors, as these are common red flags for scams.

Review your financial accounts and credit report regularly. Check your credit card statements, benefit accounts, and bank accounts for charges you didn't make. Each year, you're entitled to one free credit report from each of the three main credit bureaus.

Be mindful of what you share online and where you connect. Avoid posting photos that reveal your address or other personal details. Look closely at what appears in the background of your photos. Be cautious when using public Wi-Fi or saving your credit card information with online retailers.

Do not share personal information unless you're sure it's safe. Never give out your Social Security number or bank account information by phone or online unless you initiated the contact and verified the organization. If someone pressures you or demands money, do not comply. Be sure to empty your mailbox and email inbox often. Shred credit card offers, bills, and other documents containing personal information before throwing them away.

Can insurance help if my identity is stolen?

Identity theft insurance reimburses certain costs associated with restoring your identity, such as legal fees, lost wages, and administrative expenses. These policies may be sold separately or included in homeowners or renters policies.

Sometimes, identity theft insurance is bundled with identity theft protection, which may include credit monitoring, alerts, and other related services.

Do identity theft policies reimburse stolen money? 

No, identity theft insurance generally does not reimburse money stolen from your accounts. Before buying a policy, ask your insurance company what it includes, what it excludes, the deductible amount, and the coverage limits.
Identity theft insurance is different from cybersecurity insurance. Cybersecurity insurance, sometimes known as cyber insurance, is typically held by businesses.

Does identity theft affect my insurance premiums? 

A premium is the amount you pay for insurance coverage. Identity theft can lead to fraudulent insurance claims, higher administrative costs, and damaged consumer profiles, ultimately resulting in increased premiums for everyone. Identity theft and other kinds of fraud are not victimless crimes. Everyone pays the price.

What if I protect my information, but an organization that stores my data is attacked? 

If an organization experiences a cyberattack, and the data breach compromises personal information, it may offer free credit monitoring or identity theft protection services. The services offered depend on state law, which varies.

What if my identity is stolen?

Act quickly.

Change your passwords immediately.

Contact your financial institutions. Most will usually offer some level of fraud protection.

Dispute unauthorized transactions immediately.

Report the identity theft to the FTC.

File a report with local law enforcement.

Lock or freeze your credit report with each of the three major credit bureaus. You can lift the freeze temporarily or permanently as needed.

Use the FTC's recovery guide for step-by-step assistance.

Anyone with information concerning identity theft or insurance fraud can report it by calling toll-free 800-TEL-NICB (800-835-6422) or submitting a form on the NICB website.