Yes, your driver's license is a common tool for identity theft
A thief who has your driver's license can open credit accounts, take out loans, rent apartments, or file tax returns in your name. Your license contains your name, address, date of birth, and often a signature — enough information for someone to impersonate you in many situations. The risk is real whether the license is lost, stolen, or photographed without your knowledge.
The damage depends on what else the thief has. If they have only your license number and name, the harm is limited. If they also have your Social Security number, they can do far more. If they have your license plus financial account numbers or access to your email, they can move quickly and cause serious damage before you notice.
Key Takeaways
- A thief with your driver's license can open credit accounts, rent housing, or file taxes in your name because your license serves as proof of identity.
- The damage is worse if the thief also has your Social Security number, bank account details, or access to your email or phone.
- You should report a lost or stolen license to your state's Department of Motor Vehicles right away, and also monitor your credit reports for unauthorized accounts.
- If you discover identity theft, place a fraud alert with the three major credit bureaus and file a report with the Federal Trade Commission.
- You can reduce risk by not carrying your Social Security card, not writing your Social Security number on checks, and being cautious about who you show your license to.
What a thief can do with just your driver's license
With your license alone, a thief can open a cell phone account, sign up for utilities, or rent a car or apartment. Many businesses accept a driver's license as the primary form of identity verification. The thief may not be able to access your existing bank accounts, but they can create new ones in your name.
The thief cannot easily access your existing credit accounts or bank accounts with only a license, because those institutions usually require additional verification — a password, a PIN, or answers to security questions. However, they can use your license to open new accounts that you will not know about until you check your credit report or receive a bill.
Why your Social Security number makes the damage much worse
If a thief has both your driver's license and your Social Security number, they can do serious financial harm. They can open credit cards, take out personal loans, get a mortgage, or file a false tax return claiming refunds that belong to you. Your Social Security number is the key that unlocks most financial accounts.
This is why you should never carry your Social Security card in your wallet. Keep it at home in a safe place. Do not write your Social Security number on checks, and do not give it out unless you are certain you are dealing with a legitimate business that actually needs it — your doctor's office, your employer, your bank, or a government agency.
Steps to take if your driver's license is lost or stolen
Contact your state's Department of Motor Vehicles when ready. You can usually do this online, by phone, or in person. Report the license as lost or stolen and request a replacement. The DMV will issue you a new license number, which prevents the thief from using your old number to rent a car or open accounts in your name.
After reporting to the DMV, contact the three major credit bureaus — Equifax, Experian, and TransUnion — and place a fraud alert on your credit file. A fraud alert tells lenders to verify your identity before opening new accounts in your name. You can place a fraud alert for free by calling one bureau; they are required to notify the other two.
Check your credit reports from all three bureaus at annualcreditreport.com, which is the official free source. Look for accounts you did not open. If you find fraudulent accounts, contact the creditor and the credit bureau in writing to dispute them.
What to do if you discover identity theft
If you find unauthorized accounts on your credit report or receive bills for things you did not buy, act quickly. File a report with the Federal Trade Commission at reportidentitytheft.ftc.gov. The FTC will create an Identity Theft Report, which you can use to dispute fraudulent accounts with creditors and credit bureaus.
Contact each creditor whose account was opened fraudulently. Tell them you are a victim of identity theft, provide your FTC Identity Theft Report number, and ask them to close the account and remove it from your credit report. Keep records of every conversation and every letter you send.
Consider placing a credit freeze with all three bureaus. A credit freeze prevents anyone — including you — from opening new accounts in your name without unfreezing the file first. This is stronger protection than a fraud alert, though it requires you to unfreeze temporarily when you want to open a legitimate account.
How to reduce the risk of identity theft with your license
Do not carry your Social Security card, passport, or birth certificate in your wallet. Carry only the documents you actually need on a given day. If you lose your wallet, a thief will have less information to work with.
Be cautious about showing your driver's license to people you do not know. Retail workers, restaurant staff, and others may photograph or write down your license number. You do not have to provide your license for a credit card purchase — only for age verification or as a form of payment.
Monitor your credit reports regularly, even if you have not lost your license. You can check your reports for free once per year at annualcreditreport.com, or you can stagger the three bureaus and check one every four months. Many banks and credit card companies also offer free credit monitoring to their customers.
The difference between a fraud alert and a credit freeze
A fraud alert is a note on your credit file that tells lenders to verify your identity before opening new accounts. It lasts one year and is free. A lender can still open an account, but they must take extra steps to confirm you are really you. A fraud alert is a good first step if you suspect identity theft but have not yet found fraudulent accounts.
A credit freeze locks your credit file so that no one can open new accounts without your permission. You must unfreeze it temporarily when you want to open a legitimate account. A freeze lasts until you remove it, and there may be a small fee in some states, though many states now offer freezes for free. A freeze is stronger protection but requires more work on your part.
Frequently Asked Questions
Can someone use my driver's license number to get a loan?
Yes. A thief with your license number and other personal information — your name, address, date of birth, and ideally your Social Security number — can explore for personal loans, car loans, or credit cards. Lenders use your license number as one way to verify your identity. The loan will appear on your credit report and damage your credit score.
What if I find my license after reporting it stolen?
Destroy it. Do not try to use it. You already have a replacement from the DMV with a new number. Using the old license could create confusion with lenders and creditors who may have records under both numbers. Cut it up or shred it.
How long does it take to fix identity theft?
It depends on how much damage was done. Closing one fraudulent account might take a few weeks. Clearing your name from multiple accounts, disputing false information on your credit report, and resolving tax fraud can take months or years. Start when ready and keep detailed records of every step.
Will my credit score recover after identity theft?
Yes, but it takes time. Once fraudulent accounts are closed and removed from your credit report, the damage to your score will gradually fade. Negative information typically falls off your credit report after seven years. Your score will improve faster if you keep your legitimate accounts in good standing and keep your credit utilization low.
Do I need to buy identity theft insurance?
Identity theft insurance can help cover costs like legal fees or lost wages while you fix the problem, but it does not prevent theft or restore your credit. Many homeowners and renters insurance policies include identity theft coverage at no extra cost. Check your existing policies before buying a separate plan.