March 28, 2025

The Ultimate Guide to Preventing Identity Theft

From using card skimmers and dumpster diving to creating bogus websites and emails, fraudsters are creative in how they steal personal information. March is a good time to highlight the importance of protecting your confidential information, as the U.S. observes National Consumer Protection Week, and it is Fraud Prevention Month in Canada.

The latest identity fraud statistics reflect the seriousness of the issue. According to the Federal Trade Commission, there were more than 1.1 million reports of identity theft received through the agency’s website in 2024. Research from the Javelin 2024 Identity Fraud Study found that traditional identity fraud losses amounted to nearly $23 billion in 2023. This resulted in a 13% increase in overall losses for U.S. adult victims of identity fraud. The average amount of time consumers spent, it found, in 2022 resolving issues stemming from identity fraud clocked in at six hours, but in 2023, fraud resolution hours rose steeply, jumping to a nearly 10-hour average.

Types of identity theft

• Financial fraud: Financial fraud is defined in the National Crime Victimization Survey's Supplemental Fraud Survey as deliberate acts of deception intended to mislead victims. This occurs through misrepresentation, concealment, or omission of facts related to promised goods, services, or other benefits. These promises may be false, unnecessary, never intended to be fulfilled, or deliberately distorted, all with the aim of financial gain.
• Fraud: Fraud involves the deliberate misrepresentation of information or identity to deceive others. It includes the illegal use of credit or debit cards, ATMs, or electronic methods to transmit false information with the intent of acquiring money or other valuables. Fraud can be committed by individuals both inside and outside a business. This includes cases where a computer is used to unlawfully obtain money, property, financial documents, insurance policies, deeds, rental car access, or various services through forgery, identity misrepresentation, credit card fraud, or wire fraud. Embezzlement is not included in this definition.
• Identity Theft: Identity theft encompasses three types of incidents: (1) the unauthorized use or attempted use of an existing account, (2) the unauthorized or attempted use of personal information to access an existing account or create a new account, and (3) the misuse of personal information for fraudulent activities. Cases of identity theft at the individual level are documented in the Identity Theft Supplement (ITS) to the National Crime Victimization Survey (NCVS).

Consumers should be proactive in protecting their Personal Identifiable Information (PII). A recent Shred-it^® survey found that over 50% of consumers worry that their personal information can be used for identity theft.

Identity Theft Prevention Tips:

• Do not throw junk mail into the trash or recycling bins. These should be securely destroyed because "pre-approved" credit card offers, insurance mail, and other offers found in the mail contain valuable PII, such as names and addresses.
• Store personal information (including social security card, birth certificate, and passport) in a safe or locked cabinet.
• Run your free credit reports annually and report any problems right away.
• When providing PII to an organization, ask how sensitive documents are stored and discarded. Ask whether they use a secure document destruction service like Shred-it^®.
• When in public, make sure smartphones, laptops, and tablets are locked and protected when not in use.

How Does Shred-it® Help Contribute to Fraud Prevention?

• To further reduce the risk of fraud, opt for professional shredding services. Shredding is one of the most secure ways to dispose of unneeded or unwanted documents and items containing personal information.
• Secure document destruction services, like Shred-it^®, offer fast and convenient options, including:
• Residential shredding: Shred-it^® collects documents from residences.*
• Drop-off shredding: Drop off your documents at your local Shred-it^® office.*
• Free shredding events: A community Shred-it^® event is often free to residents to bring a box or two of confidential papers for secure destruction.

Download our info sheet for some more tips on how to help prevent identity theft.

*Some local regulations may require the recycling of all paper with your local municipality.

**This article is for general information purposes only and should not be construed as legal advice on any specific facts or circumstances.