Serving in the military means defending the nation, but service members are at an increased risk of a different kind of attack—identity theft. Frequent relocations, long deployments, and the need to share sensitive personal information create a perfect storm for scammers and credit reporting errors.

If you’re in the military, you could be vulnerable without even realizing it. At The Law Office of Matthew L. Collins, PLLC, we specialize in protecting service members from financial harm caused by identity theft and credit report errors. In this guide, we’ll uncover why military members are targeted, how identity theft can affect security clearances, and—most importantly—how you can defend yourself.

Why Are Military Members Prime Targets for Identity Theft?

According to the Federal Trade Commission (FTC), in 2021 alone, service members, veterans, and military families reported nearly 50,000 cases of identity theft. But why are military personnel such an easy target?

  • Frequent Relocations – Every time a military member moves to a new duty station, they must update personal information with banks, credit card companies, landlords, and utility providers. The more places your personal data is stored, the more chances identity thieves have to steal it.
  • Deployments Make Monitoring Difficult – When stationed overseas or on active duty, checking your credit report is not a priority. Thieves exploit this lack of monitoring to open fraudulent accounts in your name.
  • Government and Military Benefits Are Attractive to Scammers – Many military benefits, like the GI Bill and VA loans, are goldmines for fraudsters who use stolen identities to fraudulently claim these benefits.
  • Security Clearances Require Clean Credit – A common military requirement is maintaining a security clearance, which can be jeopardized by a poor credit history—even if it’s due to errors or fraud. A simple credit report mistake could threaten a military career.

Common Credit Report Issues for Service Members

Even if identity theft doesn’t happen, credit reporting errors can cause just as much financial damage. Some of the most common errors include:

  • Mixed Files – This happens when the credit reporting agencies mistakenly combine the financial information of two different people with similar names or Social Security numbers.
  • Duplicate Accounts – A loan or credit card account may be listed twice, making it look like you have more debt than you actually do.
  • Outdated Information – Negative marks like late payments or collections should be removed after seven years, but sometimes they linger on reports longer than they should.
  • Fraudulent Accounts – If a thief has opened an account in your name, it can wreck your credit until it’s removed.

Mistakes like these can lead to denied loans, higher interest rates, and even career consequences for those needing security clearances.

Best Practices for Identity Theft Protection for Military Members

  1. Freeze Your Credit While Deployed
    A credit freeze prevents anyone from opening new accounts in your name without your permission. This is one of the most effective ways to stop identity theft. You can freeze your credit for free with Equifax, Experian, and TransUnion.
  2. Check Your Credit Reports Regularly
    By law, you’re entitled to free annual credit reports from all three major credit bureaus. Military members should check their reports before and after deployments to catch any fraudulent activity.
  3. Use Active-Duty Credit Alerts
    The Fair Credit Reporting Act (FCRA) allows deployed service members to place an active duty alert on their credit reports. This makes it harder for identity thieves to open new accounts in their name.
  4. Be Cautious About Sharing Personal Information
    Scammers often pose as government officials or military benefit providers to trick service members into handing over their Social Security numbers. Always verify who you’re speaking with before providing sensitive information.
  5. Use Military-Specific Identity Theft Protections
    The Servicemembers Civil Relief Act (SCRA) offers protections that can help military members dealing with credit issues, including identity theft. Additionally, the Consumer Financial Protection Bureau (CFPB) has resources specifically for military consumers.

What to Do If Your Identity Is Stolen or Your Credit Report Has Errors

If you’ve noticed fraudulent accounts or errors on your credit report, act quickly:

  • Step 1: Dispute the Errors – Contact the credit bureaus (Experian, Equifax, TransUnion) and formally dispute any fraudulent activity.
  • Step 2: Report the Identity Theft – File a report with the FTC at IdentityTheft.gov and notify the CFPB if credit agencies fail to act.
  • Step 3: Get Legal Help – If errors persist or if the credit bureaus refuse to fix the issue, you may be entitled to compensation under the Fair Credit Reporting Act (FCRA).

Experiencing Military Identity Theft? We Can Help!

The Law Office of Matthew L. Collins, PLLC will utilize our expertise to work with you to provide personalized legal assistance, guidance through any claim resulting from the theft of your identity, and counsel based on what is best for you. My office is located in Lawrenceburg, Kentucky, and serves the surrounding Central Kentucky area, including Anderson County, Woodford County, Scott County, and Fayette County.