What is Identity Theft?                                                                                    

Identity theft isn’t something that only happens in films. It can happen to anyone. Criminals use many different methods, but they all want the same thing: your personal information. Stealing it is usually just the first step in their plan.

The next step is fraud. Once criminals have your details, they can pretend to be you. Your personal information is what banks and other companies use to confirm who you are. In the wrong hands, it lets a stranger act in your name, and you’re left dealing with the damage.

You might think it would never happen to you. But think about the last time you called your bank or mobile provider. They asked you a few questions to check your identity. If someone else knew the answers, they could pass those checks, get into your account and find even more information about you.

Criminals often only need one piece of information to get started. From there, they use phone calls, emails and social media to build up a full picture of you. This is known as social engineering, and it can be surprisingly convincing.

The information criminals most often target includes:

• Name and address
• Date of birth
• National Insurance number
• Bank details, such as account numbers and card details
• Passwords for online services, such as email, social media and PayPal
• Driving licence number
• Signatures
• Passport details
• PINs for bank cards and other services
• Answers to security questions, such as your mother’s maiden name or first school

Criminals get this information in many ways. Some methods are simple, such as going through household bins for old bills and bank statements, or stealing post. Others are more advanced, such as phishing emails and fake websites.

Banks and other trusted companies usually explain how they will and won’t contact you. Knowing this helps you spot when a request for your details doesn’t look right. Later in this article, we cover the warning signs of identity theft so you can act before it’s too late.

Identity Theft Definition

Identity theft is the act of stealing personal information that can be used to identify you. It can happen in person, for example when a pickpocket takes your wallet or bank card, or online. Identity theft is not the same as fraud, but it usually comes first. It becomes fraud when the criminal uses your details to pretend to be you.

Identity theft happens all over the world, and the damage can be minor or life-changing. Once criminals have your details, they may:

• Make payments from your bank or PayPal account
• Apply for loans, credit cards or phone contracts in your name
• Register vehicles or other assets in your name
• Run up charges on your credit or debit card
• Use your identity to cover up other crimes
• Access your financial and personal records for other illegal uses

Each of these is an example of fraud. Identity theft is how criminals get the information they need to commit it. Some outcomes, such as a single unauthorised payment, are easier to fix than others, such as being linked to a crime you didn’t commit. Banks often refund unauthorised payments, but you need to report the problem as soon as you notice it.

The damage can last for years. In 2013, the Telegraph reported on one of the most severe cases of identity theft in the UK. A British couple’s ordeal began in 2003, when Adrian Richards lost his passport, or had it stolen, while travelling. Years later, the couple received a £130,000 bill for unpaid taxes in Germany, a country where they say they had never done any business.

Online Identity Theft

The internet makes identity theft easier, because criminals never have to meet you face to face. They can hide behind fake names, websites and email addresses. Phishing emails, fake social media profiles and messages pretending to be from your bank are all common. The NCSC explains how to spot and deal with phishing scams. Watch out for these warning signs:

• A website that looks like a well-known company’s site but has small differences in design, spelling or contact details
• Someone you don’t know asking for personal information by email, text or phone
• An unknown sender asking you to open an attachment or click a link

Keep these in mind whenever you check your emails or browse online. Here are some common online scams to look out for:

• Inheritance scams. You receive an email from a “lawyer” saying a distant relative has left you a large sum of money. To release it, they ask for your bank details or a fee.
• Fake job offers. You’re offered easy, well-paid work, such as mystery shopping. One of the first tasks involves transferring money or sharing your bank details. This is a clear warning sign.
• Fake adverts. A seller asks for your personal details before letting you view a property, car or other high-value item. The price is often much lower than similar items. If they won’t let you see it in person, walk away.

If something seems too good to be true, it usually is. This is especially true when the offer comes from a person or business you don’t know. If you do fall for a scam, acting quickly can limit the damage.

How to Report Identity Theft

If you think your identity has been stolen, act straight away. These steps will help limit the damage and show that you are the victim:

• Contact your bank and other providers. Tell your bank, card provider, PayPal and any other affected services as soon as possible. They can block payments, protect your accounts and record what happened.
• Report it to the police. In England, Wales and Northern Ireland, report identity fraud to Report Fraud online or by calling 0300 123 2040. Report Fraud replaced Action Fraud in December 2025. In Scotland, call Police Scotland on 101. Give as much detail as you can, because criminals often use the same tricks on many people.
• Check your statements and credit report. Look for payments you don’t recognise and applications you didn’t make. Checking your credit report helps you catch fraud early and protect your credit score.
• Register with Cifas. Cifas is the UK’s fraud prevention service. Its Protective Registration adds an extra check whenever someone applies for credit in your name. Your own applications may take a little longer, but it makes it much harder for anyone else to use your identity.
• Report phishing. Forward scam emails to report@phishing.gov.uk and scam texts to 7726. Learn more on GOV.UK about reporting suspicious emails and websites.

How do you know if your identity has been stolen? The warning signs depend on the type of fraud. You might see payments you don’t recognise on your bank statements or PayPal account. You might receive letters about loans or credit cards you never applied for. Your bank might call about unusual activity. If you get a call like this, hang up and call your bank back on the number on your card, because the call itself could be a scam.

The best approach is to stop identity theft before it happens. You can lower your risk by:

• Only carrying ID, such as your passport or birth certificate, when you need it
• Never entering personal details on websites you don’t trust
• Never sharing personal details with unknown emails, callers or messages
• Using strong, different passwords and changing them regularly
• Shredding and destroying documents and bills that contain personal information

Identity theft can have serious and long-lasting effects, so it’s worth taking simple steps to protect your personal information. Read more about how residential shredding helps prevent identity theft and what types of documents require secure shredding.

Get a quote from Total Shred or call 0800 298 4009.