MILWAUKEE — Scams are designed to either steal your money or your identity to steal your money later. Scammers have all kinds of techniques to collect personally identifiable information (PII). Once they have it, they can become you, using your identity to open accounts, file taxes, or obtain medical coverage. The Better Business Bureau (BBB) offers tips on how to spot and avoid identity theft.

How this scam works

How do people steal your identity? With enough personal information, a scammer can pretend to be you and commit many crimes. They can make false applications for loans and credit cards, withdraw money from your bank account, or obtain services in your name. They can also sell your information to others on the Internet.

Identity theft may take a long time to detect. Scammers ensure that bills and statements for new accounts are not sent to your address. You may notice what is happening once the scammer has already inflicted substantial damage on your assets, credit, and reputation.

If you believe you are a victim of identity theft, it is essential to act quickly. In the U.S., visit identitytheft.gov for information on how to stop and recover from identity theft. In Canada, the Anti-Fraud Centre has information on identity theft.

How can you spot this type of scam?

Look for unexplained withdrawals, charges, and accounts. Review your bank account and credit card statements regularly. Look for unfamiliar charges, accounts, or withdrawals. Know when your bills are due; one tip-off for identity theft is when you stop receiving certain bills. This can happen because scammers have changed the address associated with your bank account or credit card. If bills don’t arrive on time, follow up with your creditors. Debt collectors may call you about debts that aren’t yours. You can also set up automatic alerts on your accounts so you are notified every time a transaction is made.

Check your credit reports regularly for unauthorized inquiries and accounts. In the U.S., you can check your credit report with each of the three major credit bureaus once per year at AnnualCreditReport.com. This is the only free crediting reporting service authorized by the Federal Trade Commission. Space these checks out throughout the year, and you will quickly know if something is wrong. 

For more information

If a company you do business with has experienced a data breach, BBB has information on what to do after a data breach. Also, see how to protect your identity from a data breach.

To report a scam, go to BBB Scam Tracker.

To learn more about how to protect yourself, go to “10 Steps to Avoid Scams.”

Want more of these emails? Subscribe to BBB’s weekly Scam Alerts. 

For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on Facebook, Twitter, Instagram and YouTube.