Expert Provides Ways to Protect Finances from Cyber Threats

Last year, losses from cybercrime approached $21 billion, which has led Kurt Knutsson to alert the public about the rise of complex AI scams. During his appearance on a recent episode of ‘Fox & Friends Weekend,’ he examined FBI data, noting that investment fraud alone accounted for $8.65 billion in losses. To aid families in safeguarding their finances, Knutsson has organized a free live class focused on essential money protection strategies.

Identity theft often conjures thoughts of someone breaking into a bank account or making unauthorized charges on a credit card. However, there’s another, trickier form of identity theft where criminals might exploit your personal information—like your name, Social Security number, or birthdate—to open new accounts under your name. This issue is quickly becoming a significant concern. According to Javelin Strategy & Research, the number of victims experiencing new-account fraud surged by 31% in 2025, jumping from 4.2 million to 5.4 million, marking the fastest increase among different fraud types tracked by Javelin.

New fraudulent accounts could range from a credit card issued to an unfamiliar address to a utility account with a service you’ve never used. Worse still, someone could even attempt to create a buy now, pay later account with your identity. This kind of deception often goes undetected because the fraudster may never interact with the accounts you routinely monitor—so you might not see any unusual charges on your bank statement. Instead, you could become aware of the situation only when an unexpected bill arrives, a creditor checks your credit, a debt collector contacts you, or you discover an account that isn’t yours. Fortunately, there are ways to detect the early signs before things escalate.

How New-Account Fraud Usually Works

With fraud linked to accounts you already use, the likelihood of catching it early is relatively high. You might notice an odd purchase, receive an alert from your bank, or find that your card has suddenly stopped working. In contrast, new-account fraud tends to remain under the radar for a longer period. A scammer can apply for a fresh account using enough of your personal information to appear as you. If the application is approved, the account may be associated with an address, phone number, or email the fraudster controls. To the lender or service provider, it appears that you’ve opened the account. The first indicators might be a hard inquiry on your credit report, an unrecognized new account, or unsolicited welcome mail from a service you didn’t sign up for. But keep in mind that not every type of account shows up on all credit reports, and certain phone or utility accounts could be missing. Thus, monitoring credit reports is important, though it shouldn’t be your only method of oversight.

Why New-Account Fraud Keeps Growing

Criminals now possess more stolen personal information than they ever have. Countless data breaches have revealed names, Social Security numbers, addresses, and email addresses, which are all details that help impersonate individuals. A criminal could also piece together data from various breaches, phishing schemes, or data broker sources to create a detailed profile of your identity. Additionally, the ease of opening accounts online has made it incredibly convenient. You can apply right from your living room, often receiving a swift decision. While this is great for legitimate applications, it also allows fraudsters to exploit stolen identities without ever stepping into a physical bank or store. The Federal Reserve has raised alarms about how digital account creation has amplified opportunities for fraudsters, particularly as more sophisticated technology and personal data become available.

A Closer Look at How This Can Start

It’s not uncommon for a criminal to gather what they need from multiple data breaches rather than just one. For instance, they might find your name and email from one source, while another breach reveals additional personal details. A people-search site could offer an address or phone number. When all these fragments come together, it allows criminals to start testing your identity with different lenders, retailers, and service providers. Consequently, identity theft can feel quite sudden—the information used against you might have been circulating for months or even years before it was finally mobilized.

Where the Evidence Can Show Up

When it comes to new-account fraud, various signs may appear, and if you’re not vigilant, you could miss them.

• Your credit reports: Begin by checking here for unfamiliar accounts or hard inquiries. Make sure to check Equifax, Experian, and TransUnion, as the information can vary. Right now, you can access free reports from all three bureaus weekly via AnnualCreditReport.com. Note that just because your credit report looks clean doesn’t mean you’re entirely safe—some accounts might not be reported to the major bureaus.
• Unexpected mail and email: Be on the lookout for welcome letters, account statements, verification messages, and any application-related notices for accounts you didn’t open.
• Debt collector communications: Don’t dismiss a collection notice out of hand if it doesn’t ring a bell. Inquire about the origin of the account and look into it further.
• Phone, utility, and buy now, pay later accounts: These types of accounts can often go unseen, as they may not show up on traditional credit reports. Monitoring services may provide alerts specifically for these accounts.
• Unfamiliar addresses or details: Your credit report might include addresses and other identifiers. If something seems out of place, especially alongside an unrecognized account or inquiry, it warrants further investigation.

5 Steps to Check Right Now

You don’t have to wait for a strange bill or collection call to uncover potential fraud. A few simple checks can help identify signs of new-account fraud before it becomes a more significant issue.

1) Pull all three credit reports

Visit AnnualCreditReport.com and review your reports from Equifax, Experian, and TransUnion. You can access free reports weekly, so decide whether to review them all at once or stagger your checks throughout the year.

2) Look for anything unfamiliar

Pay careful attention to any accounts, inquiries, addresses, or details you don’t recognize. If something seems off, don’t dismiss it as unimportant.

3) Consider freezing your credit

Placing a credit freeze can significantly hinder someone from establishing a new account in your name, as lenders typically can’t view your frozen report. Freezes are free to set up and remove, don’t affect your credit score, and stay in place until you choose to lift them. To fully freeze your credit, you’ll need to contact Equifax, Experian, and TransUnion separately.

4) Check your mail and email

Look for unexpected messages about accounts you didn’t open, including welcome notices, bills, and password-reset emails.

5) Turn on monitoring and alerts

Your bank and credit card companies likely offer free account alerts. Consider adding identity theft monitoring services to watch for certain credit inquiries or newly opened accounts, helping you keep tabs on any unauthorized use of your personal information. Prompt detection is key—notice something off and you can investigate right away.

What to Do If You Find a Fraudulent Account

If you discover an account that’s not yours, act quickly. Here are six crucial steps to manage the situation, minimize damage, and rectify your records.

1) Contact the company where the account was opened

Reach out to the company’s fraud department and explain that you did not open the account. Request that they close or freeze it and keep any confirmation they provide.

2) Report the identity theft

Head to IdentityTheft.gov and generate an FTC Identity Theft Report along with a recovery plan. This report can be useful when challenging fraudulent information.

3) Place a fraud alert or credit freeze

A fraud alert prompts businesses to verify your identity further before approving new credit. The initial fraud alert is free and lasts one year; just contact one of the three major credit bureaus, which will notify the others. A credit freeze provides stronger protection by restricting access to your credit report, and you must contact each bureau separately for this.

4) Dispute fraudulent information

If a fraudulent account appears on your credit report, contact the bureau showing that account to request blocking the identity theft information. To utilize the FTC’s blocking procedure, furnish the bureau with a copy of your FTC Identity Theft Report and proof of your identity.

5) Turn on monitoring and identity theft alerts

Your bank and credit card companies might offer alerts at no cost—activate those right away. Adding identity theft monitoring can help watch for specific inquiries and new accounts that may indicate unauthorized use of your information.

6) Keep a paper trail

Document who you spoke to, when, and what they said. Retain letters, emails, case numbers, and copies of anything you send. This record can save you a lot of hassle down the line.

Kurt’s Key Takeaways

New-account fraud can be particularly hard to detect, as scammers often bypass your regular bank accounts and credit cards. That’s why checking all three of your credit reports regularly is crucial—don’t wait for an unexpected bill or collection call. Free reports are available, and they can help you catch any odd accounts or inquiries. You might consider freezing your credit if you’re not actively applying for new credit. Also, enabling alerts or identity monitoring adds an extra layer of security. The key takeaway here? Speed is critical. An unnoticed fraudulent account can lead to damaged credit and an extensive cleanup process. Spot it early, and you have a much better chance of stopping it before any significant damage occurs.

When was the last time you checked your credit reports for suspicious accounts? Feel free to share with us.