5 types of family identity theft and how to protect yourself

What is family identity theft?

Family identity theft, also known as familial fraud, is a type of identity theft that occurs when a family member steals a relative's personal information and uses it fraudulently, particularly for financial gain. The stolen data may include name, address, date of birth, or Social Security number (SSN).

Someone with poor credit scores may struggle to get housing, jobs, credit cards, or loans. In a last-ditch effort to improve their circumstances, they might resort to exploiting a family member's identity to secure loans, pay bills, get government assistance or medical care, or even apply for housing—especially if the relative’s personal information is easily within reach.

Of course, some family members may steal your identity for nothing more than personal gain, possibly using your identity to buy luxury items or evade arrest. But no matter the motive, many of the warning signs of family identity theft are the same. Keep reading to learn five main types of family identity theft and how to spot them.

5 types of family identity theft

There are several types of family identity theft, but generally the target is someone in the care of an authority figure or a family member who simply doesn’t keep a close enough eye on their credit. The five most common types of family fraud include:

1. Child identity theft: A child has a blank credit history and likely won’t check their credit for years, which can make them enticing targets for identity thieves seeking to gain credit. It seems sinister, but many victims of child identity theft actually know the perpetrator personally, suggesting a family member or close friend. In these cases, the child often won’t learn about the theft until they apply for credit themselves after they turn 18.
   
2. Elder identity theft: Elder identity fraud typically involves stealing from elderly parents or grandparents. Because older adults tend to have savings and good credit, younger family members may steal funds or open accounts in their name.
   
3. Sibling identity theft: Siblings may have access to one another’s Social Security numbers, personal documents such as passports and driver’s licenses, and contact information. They also likely share some personal information, such as addresses, family details, or even bank accounts. If the siblings look alike, one can steal the other's ID for fraud or medical identity theft.
   
4. Spousal identity theft: Spousal fraud usually consists of opening accounts and running up debts in your spouse’s name. Spouses also may have access to each other’s retirement accounts and financial assets.
   
5. Deceased family member identity theft: Fraudsters can steal a dead family member’s personal information and identity to try to exploit their credit or carry out deceased person identity theft.

What happens when relatives commit identity fraud?

When relatives commit identity fraud, victims often experience severe financial consequences, including ruined credit scores, unpaid debts, and stolen funds. Additionally, the emotional toll of betrayal can be devastating, leading to strained family relationships and a loss of trust.

Some family members can cover up their identity theft for a while, but not forever. In cases of child identity theft, the minor might not discover their damaged credit for several years until they apply for a student loan, a credit card, or their first job.

Eventually, the crime can also catch up to the offending family member. If found out, the offending family member can be held criminally liable—leading to fines, imprisonment, or both.

Warning signs of family identity theft

With family identity theft, multiple warning bells may ring in unison, alerting you to the potential fraud. Unfortunately, many of the signs can be subtle and you might not notice right away, especially if you trust the person.

To help catch the fraud early, here are some signs of identity theft to look out for:

• Newfound money: A relative with persistent financial problems may suddenly appear to have plenty of cash out of nowhere, without an obvious explanation such as a new job.
  
• Caller ID inconsistencies: If an incoming call from one relative shows another family member’s name on the caller ID, it could mean they used fraudulent information to get phone service.
  
• Track records of fraud: Someone with a history of misusing Social Security numbers, including a relative’s SSN, might do it again. They may even resort to using their child’s Social Security number.
  
• Credit report changes: Newly opened accounts, inquiries, sudden score drops, and newly registered addresses on a family member’s credit report may point to fraud.
  
• Strange invoices or collection notices: These letters indicate that someone opened accounts in your or a relative’s name. Contact the company sending the invoices for more details if you’re getting notices you don’t recognize—especially if these collections are affecting your credit. Just ensure that the letters or packages you’re receiving aren’t part of a brushing scam.
  
• Unauthorized transactions on bills: Fraudsters with access to a family member’s account will likely leave evidence of their purchases on credit card or bank statements. Regularly check your statements for signs of misuse.

Steps to protect against family identity theft

One of the best things you can do to protect you and yours from family identity theft is to take precautions before an issue arises. For instance, keep sensitive documents in a secure location for better data privacy. Avoid oversharing details about your financial situation, regularly monitor your accounts, and advise your kids not to post personal information online.

If you think a relative has personal information that doesn’t belong to them and might commit fraud, take proactive and decisive action.

Here are some things you can do to start protecting yourself against family identity theft:

• Freeze your credit: Credit freezes restrict access to credit reports and prevent the opening of new accounts.
  
• Secure your records: Store sensitive documents like birth certificates, Social Security cards, and passports in a locked safe. Also, make sure any online documents are password-protected.
  
• Destroy unneeded documents: Invest in a shredder to securely dispose of personal documents. That makes it much harder for identity thieves to go through garbage to dig up your or a family member’s information.
  
• Order and review your credit report: Looking over reports can help you spot fraud before it gets out of hand.
  
• Place a fraud alert on your credit report: A fraud alert is especially helpful after you’ve detected signs of identity theft. To request a fraud alert, contact any of the three main credit bureaus and that bureau will contact the other two.
  
• Use identity theft protection services: LifeLock family plans can alert you when potential fraud involving your or your child’s SSN is detected, so you can lock down your accounts and help prevent further harm.

What to do if a family member steals your identity

If you learn that a relative committed identity fraud, you need to act fast. You might not want to out of loyalty to family, fear of repercussions, or dependency, but it’s essential to protect yourself.

Here are the steps you should take if a family member steals your identity:

1. Reach out to lenders: Always tell lenders about cases of fraud. Ask them to close any fraudulent accounts and note the presence of identity theft.
   
2. Contact the three main credit bureaus: Reaching out to Equifax, Experian, and TransUnion helps protect a credit score from extra damage. Point out fraudulent purchases in your or your relative’s name to help reverse the fraud’s impact on your credit score.
   
3. Set up security measures: Change your passwords and PINs on all financial accounts. You can also freeze or lock your credit for added protection. Finally, you can subscribe to services offering identity theft protection for families, like LifeLock family plans, that can help you restore your identity in case of fraud and help protect your family’s sensitive personal info from theft.
   
4. Review your finances going forward: Every month, check any statements and invoices for new signs of fraud. You can also go online to monitor accounts in real time.
   
5. Report identity theft: File an identity theft report with the Federal Trade Commission online. To go the extra mile, file a police report with your local precinct to press charges for identity theft and help protect other family members and potential victims.
   
6. Get legal counsel: Depending on the severity of your circumstances, you might benefit from the help of an attorney, especially if you need to take legal action or recover damages.

How to report family identity theft

Whether you’re an adult dealing with the aftermath of familial identity theft or helping a child in your family report theft, you’ll likely need the help of law enforcement. In most cases, you can report family identity theft to the following agencies:

• Federal Trade Commission (FTC): Report identity theft online at reportfraud.ftc.gov.
• Local law enforcement: Contact your local police department to report the fraud.
• The U.S. Postal Inspection Service: Report mail fraud online or by calling 877-876-2455.
• The State Attorney General's office: Filter the State Attorney General website to find the division responsible for receiving fraud reports in your state.
• Relevant financial institutions: Contact any banks, credit unions, or credit card companies that were involved in the fraudulent activity.
• The National Elder Fraud Hotline: Call 833-FRAUD-11 (833-372-8311) for assistance in reporting elder fraud, especially if you or someone you know has experienced elder financial abuse.
• Your state’s Adult Protective Services (APS): Report suspected elder abuse, neglect, or elder identity fraud to your state's Adult Protective Services agency.

Help protect your family against identity theft

You may not be able to mentally prepare for the betrayal of family identity theft. But you can take preventive measures to shore up your personal information and help protect your (and your family’s) credit and financial future.

For starters, sign up for a LifeLock family plan. Our convenient identity protection plans scan the web for your family’s personal information and send alerts when suspected fraud risks are detected. We’ll help you monitor your family’s credit reports, set parental controls on family devices, and even help restore your identities should the worst happen.