For many young adults, graduation marks the start of adulthood; with it come adult jobs, adult finances, and, unfortunately, adult-sized challenges. But some people at the start of their lives and careers may also feel a false sense of invincibility, especially when it comes to identity theft. After all, why should you be concerned about people stealing your identity when you don’t have much money to your name? Right?

Wrong. Though identity theft might seem like a problem only older, more established adults need to worry about, the truth is that you can still have a lot at stake when you’re young, especially when it comes to your ability to have the life you want in the future. Keep reading to learn more about why you should be concerned about identity theft as a young adult, how it can affect your life and future, and how long it may take to recover if you do become a victim.

Why should I be concerned about identity theft if I don’t have much money or assets?

When you’re just starting out, it’s understandable why you may not see identity theft as a major concern, especially if you don't have a lot of money. However, identity theft can have serious consequences that could impact your future financial stability and personal life.

Here are some reasons why you should still be concerned about identity theft even if you’re young:

1. Damage to your credit score

   Even if you don't have a lot of credit or loans, your credit score is still important. Identity thieves can open credit cards or take out loans in your name, which can damage your credit score and make it difficult to get credit in the future. This might make it harder to buy a car, rent an apartment, or get a mortgage later in life.

2. Stolen tax refunds

   If identity thieves get a hold of personal info like your Social Security number, they could use it to file a fraudulent tax return in your name and steal your refund. This might cause delays in receiving your refund and result in a headache when you try to resolve the issue with the IRS.

3. Legal issues

   Because identity theft is very difficult to track (and often even more difficult to fix), you could be held accountable for crimes committed using your identity, even if you weren’t the one responsible. This could result in a number of legal issues and potentially have a negative impact on your future career prospects.

4. Emotional distress 

   Understandably, becoming a victim of identity theft can be very stressful. Victims often experience emotional distress and anxiety, which can impact their overall mental health and well-being.

What are common ways you may expose my personal data online without realizing it?

Many young adults today have been digital natives since childhood and may feel overly comfortable sharing personal information online. As a result of that false sense of security around online safety, you might be putting yourself at greater risk of identity theft unintentionally. 

Here are some examples of risky cybersecurity behaviors:

1. Sharing personal information with strangers

   When you grow up with social media, sharing sensitive personal info on social media and other public spaces online may seem completely normal. In some cases, like multiplayer online games, you may even get so comfortable interacting with strangers that you feel like you know them.

   But sharing too much personal info with strangers online could give cybercriminals the tools to steal your identity. To help keep your data out of their hands, avoid sharing identifying details like your full name, birth date, address, or phone number, and never post photos of your driver's license, ID cards, credit cards, Social Security card, passport, or other sensitive documents. 

2. Online shopping with debit cards

   Most young adults are no strangers to online shopping — but you may not realize that the way you pay could be a risk factor for fraud. Shopping with a debit card means the money for your purchases comes directly out of your bank account. If that info is compromised, that means your money is on the line, and you might not be able to recover the funds from unauthorized purchases.

   Instead, opt for a credit card when shopping online. Credit card issuers tend to offer stronger fraud detection features, and there are laws that limit your personal liability for fraudulent credit card charges. If you use a digital wallet, some credit card issuers even offer virtual credit card numbers — uniquely generated, anonymized numbers tied to a card you already have.

3. Practicing poor password hygiene

   For young adults who grew up with the internet, having a large number of different accounts and logins is almost a fact of life; there may even be some you don’t remember creating. With all those different login credentials to remember, it may be tempting to use short, simple passwords or repeat the same password across multiple accounts — but the potential consequences are not worth the risk of identity theft. 

   Cybercriminals have many different techniques for obtaining passwords, from social engineering scams to brute force attacks. Using weak passwords makes it easier for identity thieves to access your accounts and steal your personal information. And if you recycle the same password over and over, all of those accounts could be vulnerable if the password is compromised.

4. Using public Wi-Fi

   When you need to get online somewhere like a café or airport, connecting to a public Wi-Fi network may seem like a good alternative to using up your cellular data for the month. However, it’s not the best idea when it comes to cybersecurity, especially if you’re inputting sensitive personal info.

   That’s because public Wi-Fi networks are often unsecured, meaning your online activity could be vulnerable to anyone else with access to the network. To help avoid cybercriminals stealing your personal data, avoid using public Wi-Fi whenever possible. 

   If you do choose to connect to public Wi-Fi, avoid making sensitive transactions that could expose personal info like your full name, address, or financial details and consider using a virtual private network (VPN).

5. Ignoring security updates and settings

   As a digital native, you may have a tendency to be less stringent about following cybersecurity protocols than your older counterparts because the internet feels so familiar to you. To help avoid creating vulnerabilities to hackers and cybercriminals, pay close attention to security settings and mandatory IT updates and be sure that any apps you download are legitimate.

How long does it take to recover from identity theft?

The amount of time it takes to recover from identity theft can vary depending on the extent of the damage and what you do to address it, but in some cases the process could take months or even years. You may need to spend time contacting financial institutions, credit bureaus, and law enforcement agencies to report the theft and take steps to address the damage. You may also need to provide evidence of the theft, such as police reports or affidavits, and monitor your credit reports and financial accounts regularly to ensure that no new fraudulent activity occurs. 

What should you do if you suspect your sensitive information has been exposed online?

If you’re concerned that your information may have been compromised and you could be a victim of identity theft, acting quickly may help you minimize the damage.

Here are a few actions you can take as soon as you suspect your personal info may be compromised:

1. Contact your bank, credit card company, and the credit bureaus

   First, reach out to your bank and credit card issuers and let them know that you suspect you may be a victim of identity theft. Ask them to cancel any contested charges and restore the missing funds to your account immediately. If the transaction has already gone through, don’t panic. You should still be able to dispute fraudulent charges and attempt to get your money back after the fact, especially if the fraud occurred via credit card.

   You should also contact the three major credit bureaus to place a fraud alert and ask that they block or remove any fraudulent debts.

2. File a report

   File a report with the FTC, the FBI’s Internet Crime Complaint Center (IC3), and your local police station. Identity theft is a form of a cybercrime, so if you suspect your personal info has been stolen, it’s important to report it to the relevant authorities. Reporting your situation to law enforcement may help them investigate similar cases and address the issues of fraud on a larger scale. 

3. Freeze your credit

   In addition to a fraud alert, you can try to minimize potential damage to your credit score by contacting the three major credit bureaus to request a credit freeze. Freezing your credit blocks inquiries into your credit record, which prevents cybercriminals from opening new accounts in your name. It’s completely free and easy to do, and the process of freezing/unfreezing can take as little as a few minutes. 

   When you want to unfreeze your credit again (for example, if you’re planning to apply for an apartment or a new line of credit), you can do so by logging onto each individual credit bureau website using the same account you used to freeze it. If you don’t have access to the internet, you may also be able to freeze and unfreeze your credit by phone or by mail, provided you supply sufficient identifying information.

Scammers have all kinds of tricks to try to get their hands on your sensitive personal information. Once they have info like your full name, address, phone number, date of birth, and Social Security number, they can use it to steal your identity and target you with sophisticated social engineering scams.  To learn more about student loan forgiveness scams and how to help spot and avoid them, check out our post on student loan forgiveness scams.  

What next?

Keeping track of your personal information is an important part of helping to protect yourself against identity theft — but it can be intimidating to handle on your own. Sign up for credit monitoring and identity theft protection from PrivacyGuard to help track changes in your credit scores and other sensitive information.

Sources: 

Consumer Sentinel Network Data Book 2022, Federal Trade Commission, Feb. 2023, https://www.ftc.gov/system/files/ftc_gov/pdf/CSN-Data-Book-2022.pdf.