October is Cybersecurity Awareness Month, arriving just as online shopping activity begins to ramp up for the holidays. Between promotional emails, delivery notifications, account alerts, and online purchases, identity thieves have plenty of opportunities to disguise fraudulent messages as legitimate communications.
According to the Federal Trade Commission, more than 1.3 million identity theft reports were filed in 2025. As fraud tactics continue to evolve, now is a good time to review how identity theft occurs, recognize warning signs, and take steps to protect your personal information.
What Information Is Most at Risk?
Identity theft happens when someone uses your personally identifiable information (PII) without your permission. A thief doesn’t need access to your wallet or physical Social Security card to cause financial damage.
Examples of sensitive information include:
- Social Security numbers
- Driver’s license or state identification numbers
- Passport numbers
- Financial account information
- Biometric data
When combined with other details such as your birth date, address, email address, or phone number, this information can be used to open accounts, apply for credit, access benefits, or commit other forms of fraud.
How Identity Theft Happens
Criminals may obtain personal information through:
- Data breaches
- Stolen mail or documents
- Malware or compromised devices
- Phishing emails, texts, and websites that impersonate trusted organizations
During the holiday season, fraudulent messages often appear to come from retailers, shipping companies, financial institutions, or government agencies. A message may ask you to verify a delivery address, investigate a suspicious purchase, or pay a small fee for package redelivery. In reality, the link may lead to a fake website designed to collect usernames, passwords, or payment information.
Once personal information is compromised, criminals may:
- Take over existing accounts
- Open loans or credit cards in your name
- Apply for government benefits
- Seek employment using stolen identifying information
Warning signs can include unfamiliar charges, collection notices for debts you don’t recognize, missing mail, unexpected account changes, or unusual activity on your credit report.
Tax-Related Identity Theft
Identity theft can also affect your tax filings. One common scheme involves someone using a stolen Social Security number or Individual Taxpayer Identification Number (ITIN) to file a fraudulent tax return and claim a refund.
Potential warning signs include:
- An e-filed tax return being rejected because a return has already been submitted under your Social Security number
- IRS correspondence regarding a return you did not file
- Tax transcripts or refunds you did not request
- Notification that an IRS Online Account was created in your name
The IRS offers an Identity Protection PIN (IP PIN), a six-digit number that helps prevent fraudulent federal tax filings. The program is available to eligible taxpayers who complete the IRS identity verification process.
If you receive IRS correspondence regarding potential identity theft, carefully follow the instructions provided and contact your tax professional if you need assistance determining the appropriate next steps.
Protecting Children’s Identities
Children are often attractive targets for identity thieves because misuse of their Social Security numbers may go undetected for years.
Potential red flags include:
- Bills addressed to your child
- IRS notices regarding tax liabilities
- Denial of benefits because a Social Security number is already in use
Parents and guardians can request credit freezes for minors through Equifax, Experian, and TransUnion, helping prevent accounts from being opened in a child’s name.
Identity Theft After a Loved One’s Death
Identity theft can continue even after someone passes away. Criminals sometimes use information gathered from obituaries or public records to access accounts, apply for credit, or file fraudulent tax returns.
If a family member has recently died, consider:
- Limiting personal details included in public obituaries
- Confirming the death has been reported to the Social Security Administration
- Notifying financial institutions promptly
- Contacting the major credit bureaus to report the death and monitor for suspicious activity
Seven Ways to Strengthen Your Defenses
1. Use Strong, Unique Passwords
Avoid using the same password across multiple websites. A password manager can help create and safely store complex passwords.
2. Enable Multifactor Authentication
Whenever available, require a second form of verification in addition to your password, especially for financial, tax, email, and social media accounts.
3. Think Before You Click
Be cautious of unexpected emails or text messages regarding purchases, deliveries, account issues, or urgent requests. Instead of clicking links, visit the organization’s website directly or use its official app.
4. Keep Devices Updated
Install operating system and software updates promptly. Updates often contain important security fixes that help protect against new threats.
5. Freeze and Monitor Your Credit
A credit freeze can make it more difficult for criminals to open new accounts in your name. Regularly reviewing your credit reports can also help identify suspicious activity early.
6. Secure Important Documents
Store Social Security cards, tax records, and other sensitive documents in a secure location and shred documents you no longer need.
7. Limit the Information You Share
Be mindful about posting personal details online and question requests for sensitive information whenever possible.
If Identity Theft Happens
If you believe your identity has been compromised, act quickly:
- Contact affected financial institutions immediately
- Change passwords for impacted accounts
- Monitor accounts for additional suspicious activity
- Place a fraud alert or credit freeze with the major credit bureaus
- Report the incident through the FTC’s IdentityTheft.gov recovery portal
- Respond promptly to any IRS notices involving your tax account
Keeping detailed records of communications, account numbers, case numbers, and actions taken can help streamline the recovery process.
Additional Resources
While no one can eliminate the risk of identity theft completely, staying informed and taking proactive steps can significantly reduce your exposure.
For additional information about identity theft prevention and recovery, visit the Federal Trade Commission’s IdentityTheft.gov website, review guidance available from the https://www.irs.gov/identity-theft-central center, and consider consulting qualified cybersecurity, legal, or financial professionals when specialized assistance is needed.
For educational purposes only. Nothing in this article is intended as individualized investment advice. PKS Investment Advisors, LLC (“PKS”) is a registered investment advisor with the Securities and Exchange Commission. Reference to registration does not imply any particular level of qualification or skill. PKS does not provide tax or legal advice; you should consult with your trusted tax or legal professionals before acting on any suggestions in this article. Examples and illustrations are purely hypothetical in nature, and do not represent actual PKS clients. Past performance is no guarantee of future performance.
