Identity theft is a serious and growing crime. It happens when a criminal steals your personal information and uses it to commit fraud. A thief can use data—such as your name, date of birth, Social Security number, driver’s license number, bank account number, or credit card number—to wreak havoc on your finances. An identity criminal can open new phone accounts, credit cards, or loans in your name, then go on a spending spree and leave you with a huge bill. Thieves have even filed fictitious tax returns and applied for driver’s licenses in their victims’ names.

Many insurance companies offer identity theft insurance to cover expenses that you may incur as a victim, such as lost wages, attorney fees, and certified mailing costs. You may have the option to add this protection to your homeowner’s or renter’s policy.

There are also companies that specialize in identity theft protection, credit monitoring, and identity restoration. These services may be sold through insurance agents, credit card companies, credit reporting agencies, or banks and credit unions. Be sure to read the fine print of these policies before signing up so you understand if do-it-yourself safeguards may be just as effective.

It’s impossible to completely prevent identity theft; however, if you catch it early, you can stop it quickly and with less potential hassle and expense.