The Hidden Link Between Hacked Emails and Identity Theft Debt

Table of Contents

1. Identity Theft is On The Rise

a. Could One Hacked Email Lead To Thousands In Debt?
b. How Can You Stay Protected?
c. What Steps Can You Take To Protect Your Digital Footprint From Fraudsters?

It is more important than ever to secure your assets as part of your debt-free journey. With your finances accessible anytime and anywhere, there is a heightened vulnerability to email hacks that can devastate your financial stability from cybercriminals. A data breach or stolen information can lead to further identity fraud, and your personal data and sensitive information can be made available to scammers. High-interest debt and inflation may already be obstacles you are navigating; how can you avoid these additional threats? 

Identity Theft is On The Rise

In 2024, the Federal Trade Commission (FTC) received over 1.1 million reports of identity theft through its IdentityTheft.gov website, revealing a significant increase in reported cases compared to the previous year by almost 100,000 reports. The number of scams directly related to financial information has also increased. Scammers are looking for more than just your personal information, their goal is to infiltrate your finances as well. Identity thieves only care about obtaining your sensitive information, and these criminals have no regard for who they are taking it from. 

Back in Season 1 of our podcast, Making it Count, we investigated how the COVID-19 Pandemic caused a rise in identity theft and fraud. The episode features expert guests Kevin Schmick and Brian Stevens from the Network Security Services department at Addition Financial as they covered the common scam red flags so listeners can spot and avoid malicious attacks and keep their finances secure. Unfortunately, the trend has continued upwards. Scammers are continually advancing the strategy and technology around identity theft and accessing your personal resources. It is an omnipresent threat that you should treat seriously, taking daily action to stay ahead of the game. 

Could One Hacked Email Lead to Thousands in Debt?

Absolutely – and it happens more often than you might think. A single compromised email can unlock a floodgate of personal information, from saved passwords to bank logins and credit card details. Cybercriminals use this access to open fraudulent accounts, rack up charges, or even commit full-blown identity theft. Before you know it, your inbox becomes the entry point to debts you didn’t create – and a credit mess you’re left to clean up. That’s why protecting your email isn’t just a tech issue – it’s a financial one, too. Some examples of links from hacked emails and your finances include:

• Applications: Thieves can apply for credit cards or loans in your name using info found in your inbox. 
• Bank Login Information: Credentials stored in emails can lead to drained accounts or wire fraud.
• Your Financial Identity: Bills, tax forms, and financial statements give criminals everything they need to impersonate you.
• Credit Score: One fraudulent account can hurt your credit score and take months to dispute and repair.
• Sold Information: Hackers often sell your information on the dark web, multiplying the risk of repeated attacks.

These impacts can be long-lasting, but the information can be taken quickly so it is important to be vigilant. Now that you understand the potential impact and some background on the problem, let’s talk about preventative measures. 

How Can You Stay Protected?

In this case, we are focusing on identity theft. You might not initially think your account is vulnerable to being taken over, but you would be surprised how quickly it can happen. First and foremost, keep an eye on your bank account and credit card transactions to spot signs of fraud early. Do a daily check-in of your accounts and turn on notifications for whenever money moves, whether it is an email or a text message, so you can catch anything you don’t recognize. These notifications can be set up once, and you will have the peace of mind, knowing you have full visibility 24/7 to who might be trying to get your personally identifiable information. 

Now is a great time to incorporate identity theft protection services into your financial plan. Consider budgeting for reputable services that offer credit monitoring, dark web monitoring, and restoration services, and also prioritize strong passwords, shredding sensitive documents, and social media privacy settings. Many of the companies offering an identity theft resource center have affordable plans that will provide continuous monitoring. Invest in one of these services now, and the benefits will be well worth it long term. 

Keep your eyes on the prize! If you are focused on your goals and have a plan, you will be less susceptible to scams preying on vulnerabilities and phishing. 

What Steps Can You Take to Protect Your Digital Footprint from Fraudsters?

If you are the unfortunate victim of an email scam (or think you might be), you can take action quickly to lessen the impact. There are a few easy steps you can take today to be protected ahead of an identity theft event and audit your account. 

1. Change your password: Utilize a strong password that does not have any personally identifiable information or repetition. Use a variety of special characters, numbers and letters that would be hard to guess, but that you can remember. 
2. Multi-Factor Authentication: Take the time to set up MFA, adding an extra layer of protection to your account from unauthorized access. Think of it as an extra gate before someone reaches the safe that holds your data. Having MFA set up can help you to feel confident that you are making it more difficult for unauthorized users to access your account. 
3. Check your account for abnormalities: New folders not made by you, registered or active devices that are not yours, or strange email forwarding settings should all be removed. If you see something suspicious, this may be the start of an impostor scam. If you are accessing your email every day, you should be able to see if something is out of the ordinary. 
4. Make sure suspicious messages are gone: While many will think that deleting the message is enough, take the extra step to clear it out of your email trashcan. This also goes for your “sent” messages folder and any others that might be hiding in plain sight. An identity thief might start small with items you might not notice if you are not paying attention. 

What do you do if you have already fallen victim to a threat? Check out our Step-by-Step Guide to Report Financial Identity Theft and Fraud. We walk you through a 9-step process to lessen the impact of the identity theft event and work to safeguard your accounts for the future. This guide answers the questions of what immediate actions you should take, who to contact, and how to move forward in the future. 

Addition Financial is Your Defense Ally

Here at Addition Financial, we have a comprehensive Security Center so you can be informed and safe when protecting your accounts and being mindful of identity theft protection. You’ll find answers to common questions and strategies to avoid common mistakes so you can focus on your debt-free journey, not wasting time recovering your stolen information – or worse – your hard-earned money! And if you have already been a victim, see how we can support you as your trusted credit union. When you are paying attention to potentially fraudulent activity, that is a great foundation to build on. Our goal is to provide resources to set you up for success as your own financial security superhero.