Consumer Protection Data Spotlight | May 2020 1 

Identity theft causing outsized harm to our troops

Our men and women in uniform take on unique 

hardships when they choose to serve. Identity theft 

shouldn’t be one of them. But the FTC’s Consumer 

Sentinel Network database shows that active duty 

servicemembers file reports about many forms of 

identity theft – and related problems with debt 

collection and credit reporting – at much higher rates 

than non-military consumers. 

Five years of identity theft data reported to the FTC on 

IdentityTheft.gov show that active duty 

servicemembers are 76% more likely than other adults 

to report that an identity thief misused an existing 

account, such as a bank account or credit card.1 Most 

notably, they are nearly three times as likely to report 

that someone used a debit card or some other 

electronic means to take money directly from their

bank account.2 This finding suggests that 

servicemembers are experiencing highly 

disproportionate instances of theft from their financial 

accounts compared to the general population. That’s 

not all. They also are 22% more likely to report that

their stolen information was misused to open a new 

account,3 especially new credit card accounts. 

Recovering from identity theft can be a challenge in 

the best of circumstances, and it can take months or 

even years to untangle the mess when not caught 

quickly. But keeping a close eye on credit reports, 

which can help someone spot early warning signs, can 

be difficult for active duty troops. They report that 

creditors often send notices to old addresses, which 

may delay their ability to act 

on warning signs, such as bills 

from unknown creditors or 

unexpected credit card 

charges.

4 In fact, one-fifth of 

active duty servicemember 

reports indicate that they have 

already experienced two or 

more types of identity theft. 

However, many active duty 

servicemembers report that 

they have taken protective 

steps. Nearly half tell us they 

have reviewed their credit 

reports and 40% say they have 

a fraud alert in place when they 

report identity theft. What the 

data doesn’t tell us is how 

many took these steps before 

learning of a problem. 

Securing personal information 

may also present special 

challenges for active duty 
Consumer Protection Data Spotlight | May 2020 2 

troops. Nearly 14% of their reports indicate that a 

family member or someone they know stole their 

identity, compared to just 7% of other adults who 

report. Reports suggest that this often happens when 

people have access to important documents or 

financial records left behind during military 

assignments. 

When identity theft happens, credit problems and 

collection calls often follow. Based on data provided 

by the Consumer Financial Protection Bureau, active 

duty servicemembers report problems with debt 

collectors and credit bureaus at more than twice the 

rate of other adults.5 More than 40% of the debt 

collection reports indicate that the debt was caused by 

identity theft, and more than 40% of the reports about 

credit bureaus indicate that information on a credit 

report belongs to someone else.

6

 And many say they 

worry that these problems could put their security 

clearances and their military careers at risk.

Frequent moves and overseas service are also 

associated with other kinds of credit reporting 

complaints. Military personnel have protections that 

can allow them to cancel housing contracts, vehicle 

leases, and some other accounts before they ship out, 

but reports show this doesn’t always go smoothly. 

Often, people learn of a problem only when they spot 

a ding (or worse) on their credit reports. 

MilitaryConsumer.gov is a resource for 

servicemembers, veterans, and their families to avoid 

scams and manage money. Here are a few things you 

can do now to protect yourself: 

• Check your bank account regularly. Report a

lost or stolen debit card or unauthorized

transactions immediately. Your bank may 

have a service to alert you to every transaction 

or transactions over a certain amount. 

• To prevent someone from misusing your debit

or credit cards, many banks will let you

temporarily lock or freeze your card online or

through their mobile app. You can quickly and

easily unlock the card at any time the same

way.

• Don’t give out authentication information –

including PIN numbers or verification codes –

to anyone who calls, emails, or texts you. If

you didn’t initiate the contact, you can bet it’s

a scam.

• Sign up for free credit monitoring, available to

active duty servicemembers, to get

notifications of activity on your credit reports.

• Put an active duty alert on your credit reports

if you’re deploying. Alerts last a year (you can

renew) and require creditors to take steps to

verify your identity before granting credit in

your name.

• Even if you’re not deploying, consider placing

a fraud alert if you suspect identity theft.

Consider a credit freeze if you want a bit more

protection and if it fits your situation.

• Know your rights under the Servicemembers

Civil Relief Act. Talk with a Personal

Financial Manager or your military legal

assistance office to learn more.

Go to IdentityTheft.gov to report and get a plan to 

recover from identity theft. 

1. This and other identity theft figures are based on 2015-2019 identity theft reports to the FTC classified as the following theft subtypes: checking\savings account –

existing, credit card – existing, debit cards, electronic funds transfer, or ACH, ITAC - account takeover, landline telephone – existing accounts, mobile telephone – existing

accounts, utilities – existing accounts. The comparison of active duty servicemembers with other adults is normalized based on the number of reports per million

population. The population figure for other adults was obtained from the U.S. Census Bureau 2018 American Community Survey 1-year demographic and housing

estimates. The population figure for active duty servicemembers was obtained from the Defense Manpower Data Center December 31, 2019 file titled Number of Military
Consumer Protection Data Spotlight | May 2020 3 

and DoD Appropriated Fund (APF) Civilian Personnel Permanently Assigned. The FTC received 13,467 identity theft reports from 2015 through 2019 that indicated the 

consumer was an active duty servicemember. 

2 This figure is based on 2015-2019 identity theft reports to the FTC classified as debit cards, electronic funds transfer, or ACH. The comparison of active duty 

servicemembers to other adults is normalized based on the number of reports per million population as described in endnote 1.

3 This figure is based on 2015-2019 identity theft reports to the FTC classified as the following theft subtypes: checking\savings account - new, credit card – new, ITAC – 

new account, landline telephone – new accounts, mobile telephone – new accounts, utilities – new accounts. The comparison of active duty servicemembers to other adults 

is normalized based on the number of reports per million population as described in endnote 1. 

4 About 12% of the 1,842 2018 and 2019 debt collection complaints from active duty servicemembers in Sentinel that were contributed by the Consumer Financial 

Protection Bureau (CFPB) cited problems receiving proper written notification of a debt, often due to relocation.

5 This figure is based on 2018 and 2019 reports in Sentinel contributed by the CFPB and classified as credit bureaus, creditor debt collection, and third party debt 

collection. The comparison of active duty servicemembers to other adults is normalized based on the number of reports per million population as described in endnote 1.

6 This figure is based on 2018 and 2019 reports in Sentinel contributed by the CFPB and classified as creditor debt collection, third party debt collection, and credit 

bureaus. Nearly 43% of the 1,842 reports from active duty service members about debt collection indicate the debt is the result of identity theft, and nearly 43% of the 

3,301 reports about credit bureaus indicate the information belongs to someone else.