10 smart ways to prevent identity theft

Nowadays, identity theft has become one of the fastest-growing cybercrimes. In 2024, the United States' Federal Trade Commission received over 1.1 million identity theft reports¹, which is an increase of about 9.5% compared to 2023. What's even more disturbing is the fact that more than 47% of the Americans have their personal info exposed².

Sometimes one mistaken click or download is all it takes to turn your life upside down. Fortunately, you can protect yourself with a few proactive steps and the right tools. This guide walks you through practical methods to keep cybercriminals away from you and explains how Acronis True Image helps prevent identity theft with its built-in protection technologies.

What is identity theft?

Identity theft is when someone steals your personal information, like your social security number, credit card details, or account number, to commit crimes without your consent. Once cybercriminals have this information, they can withdraw all your savings, open new accounts, or take out loans in your name.

What is the difference between identity theft and fraud?

Identity theft is the act of stealing someone's personal information, while fraud is the outcome. For example, when hackers use your social security number to make unauthorized charges or hide behind your name to commit crimes, that's fraud.

Common types of identity theft

There are different types of identity theft:

Financial identity theft

Without a doubt, this is the most common form, where attackers use credit card, debit card, or banking data to drain funds, file unauthorized credit applications, open new accounts in their victims' names, or fraudulently claim their tax refund and severely damage their credit history.

Medical identity theft

This happens when someone uses your insurance or medical ID to pay for their own treatment or prescriptions, leaving false entries in your medical records.

Criminal identity theft

A fraudster gives your name to police during an arrest, pretending to be you, creating fake records that can haunt you for years.

Synthetic identity theft

In this type of theft, criminals assemble pieces from different people's real information, such as taking one person's birthdate, another's address, and someone else's phone number, then add completely fake details like a fictional name and made-up job history. This creates a believable "new person" that can open bank accounts, apply for loans, and build credit for months or years before committing large-scale fraud.

How can cybercriminals steal your identity?

Cybercriminals can steal your identity in many different ways, like:

Phishing scams and social engineering

You receive fake emails or phone calls from scammers posing as your bank, employer, or government agencies, designed to trick you into revealing personal or financial information.

Data breaches and exposed databases

Nowadays, it's far too common for companies to fail to protect their customers' databases, which leads to millions of leaked records, giving cybercriminals massive amounts of personal information such as names, ID numbers, Social Security numbers, login credentials, and addresses. Hackers then either sell this information on the dark web or use it directly to commit fraud.

Malware, spyware, and keyloggers

Malware is malicious software designed to infiltrate your system and steal data, damage files, or take control of your device.

Spyware operates secretly in the background, tracking your online activity and collecting personal information.

Keyloggers are a specific type of spyware that capture keystrokes and sensitive information as you type in real-time, revealing your passwords or account numbers without your knowledge.

Public Wi-Fi snooping

Public Wi-Fi connections make it easy for cybercriminals to intercept your data, so never use public networks when shopping online or entering bank credentials and credit card information.

Mail theft and dumpster diving

Physical mail theft is becoming very common practice, as even discarded envelopes and documents can reveal personal or financial information. Criminals steal mail directly from mailboxes or search through trash (dumpster diving) for financial statements, medical records, and other sensitive documents. Similarly, unsecured emails containing personal data can be intercepted or accessed by hackers. Always use a secure mailbox, shred all documents before disposal, and permanently delete emails with sensitive information.

10 ways to prevent identity theft

Identity thieves improve their methods to get what they want, but there are proven tactics to protect your personal information from falling into the wrong hands. Let’s walk through the most effective steps you can take to keep cybercriminals away.

1. Use strong, unique passwords for every account.

Never use weak passwords, because hackers now have AI powered software that cracks them in minutes. Use long, complex, and unpredictable combinations of upper- and lowercase letters, numbers, and special symbols, because strong passwords are much harder to crack. Furthermore, do not use the same password across all your accounts; either use different ones for every account, or equip yourself with a password manager to generate and store them safely, making it easy to stay secure without remembering them all.

2. Enable two-factor authentication (2FA).

Two-factor authentication adds another layer of protection by always requiring a code or token from your phone or app to log into your accounts. Choose authentication apps over SMS, as text messages can be intercepted. Most banks, credit card issuers, social media platforms, and other applications now support 2FA—enable it wherever available.

3. Monitor your credit reports and bank statements.

Monitoring your credit reports regularly is essential to catch identity theft in its early stage. It's not a time-consuming nor complex process; you just have to visit official credit bureaus to access your free credit report each year. So, review it closely for new accounts, or suspicious activity. Keep an eye on bank statements too, since cybercriminals often hide fraudulent charges among legitimate transactions.

At the end of the day, it is your responsibility to protect yourself. In case you see payments that weren't made by you or any other suspicious activity, contact your financial institution, notify the police, and report identity theft right away. That can save you many headaches and thousands of dollars.

4. Avoid public Wi-Fi for sensitive activities.

We've all done it. We log into our bank accounts or shop online while enjoying coffee at a café, only to realize too late that we were on public Wi-Fi the whole time. These networks are rarely secure, making it easy for hackers to intercept passwords, payment information, and other sensitive data. Avoid using public networks for any activity that involves entering personal or financial information.

5. Shred personal documents before disposal.

Old financial documents, bills, and medical papers can reveal far too much information about you. That's why you must always shred anything that includes your birth date, address, social security number, or any other personal information. Cross-cut shredders are best because they make it impossible to reconstruct the pieces.

6. Be cautious of phishing emails and phone scams.

Never provide your personal information in an email, even if it seems legit and comes from your bank or credit card company, because these institutions would never ask you for such information via email. Always double-check for grammar mistakes or urgent language; those are major warning signs. If you ever share information by mistake, contact the fraud department of your bank immediately and place a fraud alert with the credit bureaus to prevent further misuse.

7. Secure your devices with antivirus and encryption.

Our phones and laptops store enormous amounts of sensitive data, so ensure they are adequately protected by equipping them with reliable antivirus software to block malicious software and spyware. Moreover, enable full-disk encryption, so even if your device is stolen, your personal information remains safe. Last but not least, always keep your OS, third-party applications, and mobile apps updated, because these patches remediate vulnerabilities that cybercriminals can exploit to breach your devices.

8. Limit personal information shared online.

In your social media accounts, avoid sharing personal information online like birth dates, location, vacation plans, workplaces, and other sensitive details, because those small details help hackers guess passwords and take over these accounts. Another good practice is to review privacy settings and avoid giving away unnecessary identity details.

9. Freeze your credit if you’re not applying for loans.

Placing a credit freeze is one of the easiest ways to stop identity thieves from taking out loans or applying for other credit in your name without your knowledge. You can lift or remove it anytime when you actually need credit. Most credit bureaus offer free online tools to manage freezes with just a few clicks.

10. Use identity theft protection services.

Start using Identity theft protection software like Acronis True Image, which continuously scans the dark web for your sensitive information. It notifies you if your data appears in a breach and guides you through each step of the recovery process. Look for tools that offer credit monitoring, breach alerts, secure backup, insurance, and expert help.

How does Acronis True Image prevent identity theft?

Acronis True Image offers you built-in identity protection* that continuously monitors your personal data, including sensitive identity and financial details. You receive proactive, automated monitoring through an intuitive dashboard, eliminating the need to piece together alerts from multiple sources.

The software works by tracking potential threats to your identity and financial accounts in real time, like attempts to open new accounts in your name, take over your existing ones, or use your information for things like tax return fraud or even employment background checks.

If any suspicious activity suggesting identity theft is detected, you’ll be notified immediately. And this is extremely important, because cybercriminals take action fast. Once they have your information, they immediately try to drain your bank accounts or commit other fraud. The sooner you're notified that your personal information is being used, the sooner you can lock it down and minimize the damages.

If you have your identity stolen, you're not alone. You'll have access to trained identity protection specialists available 24/7/365 to help restore your identity and resolve fraud. The next benefit is that you also get up to 1 million dollars in identity fraud insurance**, which helps you cover financial losses if someone successfully abuses your information. That's not just monitoring but resolution and recovery.

Real-time anti-malware and ransomware protection

One of the best things about Acronis True Image is that it actively blocks threats trying to steal your data in the first place. The platform analyzes how data on your system is being accessed and modified; it monitors for any unusual behavior patterns and unauthorized activity that clearly indicate ransomware, spyware, or credential theft.

Moreover, Acronis successfully stops spyware and keyloggers that aim to collect your passwords quietly, account credentials, and any type of financial data. The software uses active protection that safeguards you from exactly that kind of behavior, like silent data harvesting, unauthorized attempts to encrypt your files, or sudden bursts of file modification, and blocks it immediately. This approach is highly effective in keeping identity thieves from gathering the details they need to impersonate you.

Secure backup and recovery for critical identity documents

The unpleasant truth is that everyone can fall victim to a cyberattack; it takes only one click on the wrong link in an email to download malicious software and open Pandora's box. If a cybercriminal steals your personal data, you’ll still need to prove who you are. That's where secure backup matters.

Acronis True Image lets you create backups of entire devices and of specific identity documents, such as ID cards, insurance records, and any financial documentation. This way, you can keep clean copies stored safely instead of leaving the only one sitting unprotected on your desktop or in your email. Should ransomware strike, you can immediately restore your documents from backup to prove your identity, even if your device is locked or compromised.

End-to-end encryption and zero-access storage

Acronis uses strong encryption and hardened data centers, plus self-defense mechanisms to protect your backup from falling into the wrong hands. The software encrypts your data before transmission, preventing unauthorized access to your backups.

It's well known that cybercriminals often try to target backup software first, because if they can corrupt both your live data and your backup, then they can fully lock you out and leave you with no other choice than paying the ransom demanded. Fortunately, the platform protects you from this kind of scenario and guarantees that your data stays both private and retrievable.

Protection for multiple devices under one platform

Nowadays, we all have computers, tablets, and smartphones, and all of them store sensitive personal information. Acronis hears you and offers protection across all of your devices in one place under one license. That's why the platform is ideal for families with shared accounts, because you can extend identity monitoring, active ransomware protection, and secure backup to all members of your household.

Additional tips for specific groups

• Protecting your child's identity from theft

Children’s clean credit records are valuable targets. Keep their social security cards and ID numbers private, freeze their credit, enable parental controls on their devices, and teach them early about protecting personal information.

• Seniors and identity theft

Older adults are frequent victims of phone or mail scams. Help them recognize suspicious phone calls and emails, ignore unsolicited requests for personal information, and use secure passwords on their accounts.

• Identity protection for remote workers

Remote work often means mixing personal and corporate data. Always use the company VPN, keep financial information separate, and back up work data to maintain privacy and compliance.

Frequently asked questions (FAQs)

How can I tell if someone is using my identity?

Watch for activity related to opening new accounts or social media profiles, denied loans, or unexplained unauthorized charges, these are all signs your identity was stolen. As we've outlined earlier, checking your credit reports regularly helps detect problems early.

How can Acronis True Image help prevent identity theft?

The software uses a combination of different approaches to protect your identity, like monitoring for data breaches containing your sensitive information, encrypting your backups, and alerting you when your personal information is at risk.

Does using a password manager make me a target?

No. Password managers effectively create and store your passwords in an encrypted vault; this is one of the best ways to prevent credential theft. These tools employ robust security features that make it nearly impossible for cybercriminals to steal your passwords.

Is credit monitoring enough to protect my identity?

No. While credit monitoring is helpful, it's not sufficient for complete protection. To protect your identity apart from credit monitoring, you must use strong passwords, two-factor authentication and equip yourself with reliable cybersecurity software that provides you with encrypted backup and other security features for full identity protection.

Are free identity protection services reliable?

No, free tools offer limited security features compared to paid premium versions, which include the full arsenal of tools and solutions for identity protection, like dark web monitoring, insurance, and recovery help.

Conclusion

Nowadays, identity theft has become one of the fastest-growing cybercrimes. From phishing emails to data breaches, hackers exploit every single opportunity to steal your personal information and commit crimes, such as draining your bank accounts and credit cards, taking loans in your name, and using your social security number to pay for medical care without your knowledge. This means no one is completely safe from these destructive threats, but the good news is that we can each take small, effective steps to avoid becoming victims.

These include using strong, unique passwords; enabling multi-factor authentication (MFA); monitoring your credit reports; avoiding public Wi-Fi networks; shredding personal documents before disposal; staying alert to phishing emails and phone calls; using trusted antivirus software; encrypting sensitive information; limiting the personal data you share online; freezing your credit when you’re not applying for loans; and using reliable identity theft protection services.

However, if you want the best possible identity theft protection, you must equip yourself with Acronis True Image, which is the perfect software that gives you more than just backup functionality; it offers you full control of your digital life. With over 20 years of innovation and more than 5.5 million users worldwide, the platform combines proven backup and recovery capabilities with advanced cybersecurity and identity protection*. With it, you can securely back up entire systems or individual files to the cloud or local drives, clone disks, and restore everything with a single click. Active protection blocks ransomware, spyware, and zero-day threats before they can reach your data, while AES-256 encryption ensures that only you can access your files.

Identity Protection* continuously monitors the dark web to ensure your personal information isn’t being sold or misused. On top of that, you’re covered by up to $1 million in identity fraud insurance**. The result is an all-in-one security solution that protects you and your family from data loss, cyberattacks, and identity theft. With Acronis True Image, every part of your digital world stays private, secure, and always recoverable.* Only available in the U.S. for Advanced and Premium subscriptions.

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