Incarcerated People Are Frequent Targets of Identity Theft

January 27, 2025 — Press Release

New Resource Outlines Tools to Reduce Incidence of Identity Theft Behind Bars

WASHINGTON – As the Federal Trade Commission’s Identity Theft Awareness Week kicks off, a new issue brief from the National Consumer Law Center (NCLC) draws attention to one group of identity-theft victims who are often overlooked: people who are incarcerated.

“Federal and state agencies, including those in charge of correctional facilities, need to do more to prevent identity theft targeting incarcerated people,” said Andrew Pizor, senior attorney at the National Consumer Law Center. “Successful reintegration into society upon release from incarceration is in everyone’s best interest, and identity theft makes it significantly harder.” 

Identity thieves often target people who are incarcerated because they have limited credit histories, especially if they have been incarcerated for a long period of time. That means their personal information can be used to open new accounts more easily. Incarcerated victims are also less likely to discover the theft because they are typically walled off from the free world–they have limited access to the internet, mail, and telephones. And while some financial institutions will call their customers to alert them to suspected fraud, people who are incarcerated cannot receive such calls, and they are often prevented from easily checking their accounts online or requesting a copy of their credit report.

“People leaving incarceration are already extraordinarily economically disadvantaged, and identity theft can make it even harder for them get housing, a job, a cell phone, or open a bank account because they’re saddled with bad credit and someone else’s bad debt,” said Ariel Nelson, senior attorney at the National Consumer Law Center who also directs NCLC’s Criminal Justice Debt & Reintegration Project. “In short, identity theft can become yet another barrier to successful reentry,” said Nelson.

“Anyone worried about identity theft should consider placing a ’freeze’ on their credit report,” said Pizor. “A freeze will prevent bad actors from opening new accounts without your consent.” 

People who are incarcerated can work with a counselor at their facility or a trusted person who is not incarcerated. More information is available from https://www.usa.gov/credit-freeze. And anyone who has already been a victim of identity theft should look at the Consumer Financial Protection Bureau’s’s guide, What do I do if I’ve been a victim of identity theft? and the Federal Trade Commission’s comprehensive resource on identity theft. 

Related Resources

• Captive Concerns: Incarcerated People Face Obstacles to Reporting Consumer Abuses, July 22, 2024
• Sentenced to a Life of Debt: It Is Time for a Reassessment of How Bankruptcy Law Intersects with Fines and Fees to Keep People in Debt, Feb. 16, 2022
• The High Cost of a Fresh Start: A State-by-State Analysis of Court Debt as a Bar to Record Clearing, Feb. 1, 2022
• Broken Records Redux: How Errors by Criminal Background Check Companies Continue to Harm Consumers Seeking Jobs and Housing, Dec. 10, 2019