Identity Theft By Family or Friends

Identity theft isn’t always committed by a stranger or a mystery hacker. Oftentimes, when your identity is stolen, it is taken by someone who know. In 2014, there were approximately 550,000 identity theft and fraud victims reported that was committed by someone they knew and the numbers have likely raised.


It is hard enough to deal with a stolen identity, let alone when it is perpetrated by someone you know.You may feel betrayed, violated, and your trust may be broke. It might be difficult to trust anyone again. These are valid feelings to have.


When the theft is by a family member or friend, you may have a hard time turning that person in or filing a police report because of the ramifications it will have for that person and the judgement by your other family members. They may even pressure you to let the matter go. It is even trickier when your spouse is the one who stole your identity. 


What is Identity Theft 

Identity theft happens when someone uses your identity for their own financial gain. It could be for making purchases, qualifying for a loan, or getting approved for a credit car, among other things. 

Parents may be under the impression that using their child’s information for financial gain is okay, but that is a form of identity theft. Some other examples include:

  • A family member uses your name and SSN to qualify for a credit card or loan.

  • A parent uses their child’s name and SSN to sign up for utilities or cable.

  • A family member uses another family members name and SSN to qualify and sign for a lease.

  • A spouse uses your name and income without your permission to open an account without you knowing.


Often, you may not know that it has happened until you have a delinquency on an account, an outstanding debt under your name, or an unfamiliar account on your credit report. It is still considered a crime that needs to be corrected even if it hasn’t gone into collections. 


What To Do

Once you realize that your information has been stolen you need to contact the creditor and business and explain that you are not responsible for the debt. You should also file a police report. This is the only way that you will be able to fix your credit report. You need to also place a fraud alert with the credit bureaus and report the theft to the Federal Trade Commission (FTC). It is difficult to file a police report on someone that you know, but it is a must if they have jeopardized your financial future. 


What if Friends or Family Do Not want you to File a Report?

If you are being pressured to let the situation go by friends or family members, you have to realize what is at stake if you do not report the theft. Your credit history is on the line, and you will ultimately be the one responsible for repaying the money owed unless you take the necessary steps to dispute the charges. If the person gets away with the theft, you might be putting others at risk as well. They may feel that they can get away with stealing someone else’s identity if they see it as an easy task. 


Other Ways to Protect Yourself

You will possibly need to change your bank account number as well as close all the accounts that you currently have open. You should take the time to set up alerts on your credit report. This will help protect you from identity theft in the future. 

If your credit card(s) are stolen, you are at an even greater risk of having your identity stolen. You will want to carefully monitor your statements. You should be requesting your credit report every few months to check over your information. Right now, credit reports are free weekly from www.annualcreditreport.com until April 2022. Many banks are now offering free credit report tracking as well. 


Dealing With Your Family After

You need to remind yourself that identity theft is not your fault, and you did not do anything wrong. You will likely be dealing with feelings of betrayal regarding the person who did this. You should take the time to seek advice on how to communicate with them, what boundaries you need to set up, and if it is possible to maintain the relationship.   You should always be cautious about how you share your information with friend and family members. 


Let us know if you have questions on dealing with this type of situation.