Taking care of your health after identity theft

Identity theft can impact more than just your credit or finances. Fraud victims often report feeling sad or ashamed, and can experience stress, anxiety, or even depression.

According to a 2023 survey by the Identity Theft Resource Center, 47 percent of victims experience sleep problems as a result of their incident, and nearly a quarter experience panic and anxiety attacks.

The World Health Organization also says that mental health problems including dementia and depression are often under-diagnosed in older adults—which may make seniors more susceptible to scams or make the recovery process particularly painful.

But whether you’re a young professional managing a growing family or a retiree enjoying your golden years, you’re not alone. Fraud is increasingly common, and it can happen to anyone.

Our specialists have been on the frontlines of that fraud wave, and they’ve seen the devastation firsthand. “First of all, understand that this isn’t your fault—scammers have gotten really, really good at making their ploys look real,” says April Melheim, Workforce Planning Manager at Allstate Identity Protection. “It could happen to anyone at any time—there’s no shame in it.”

How to cope if you’re a victim of a scam or identity theft 

Fraud can make you feel helpless, but there are ways to reclaim control. If fraud does happen to you, the first step to recovering, both emotionally and financially, is to report the crime. 

“Identity theft is not a problem that goes away on its own,” Melheim says. “The longer you let it go, the worse that it gets.”

If you’re an Allstate Identity Protection member, know that our specialists are here to guide and support you through the restoration process. They can also provide expert advice on how to shore up your digital safety.

“Education is a huge part of our restoration process. We make sure victims know how they can be better prepared if it happens again,” says Melheim.

When a member first reaches out to us about a possible case of identity theft, our team often advises them to go ahead and file a report with the Federal Trade Commission (FTC). Many merchants require an official identity theft report. Filing with the FTC is fast, free, and easy, and may help law enforcement track and fight back against scammers. 

Plus, it just feels good to be proactive. “Taking steps to reclaim your identity can help cut down on the stress and helplessness you may feel,” says Melheim. 

Once we’re on the case, rest assured—our team will stay with you until the issue you’re experiencing is resolved. In the meanwhile, consider taking these additional steps:  

• Confront any and all emotions. Lean on your community. You may find comfort in discussing your experience and worries with a friend or family member. For additional support—or if any mental health condition gets debilitating or life-threatening—reach out to a counselor, therapist, or psychologist.   

• Focus on the crime, not the criminal. Part of what makes digital fraud so tricky is that, in most cases, the criminal remains anonymous. Some victims report feeling paranoid and anxious after having their identity stolen, worried that they were singled out by someone they may know. But in many cases, says Melheim, scams are part of a crime ring, rather than a one-off attack on an individual.  

• Find ways to manage and reduce your stress.  Stress-relieving activities like journaling, yoga, walking in nature, or spending time with loved ones can help calm racing thoughts and restore balance. Don’t forget the basics: eat nourishing foods, get adequate rest, and exercise regularly. 

Finally, give yourself grace as you navigate this tricky time. “It’s normal to feel a sense of violation, but don’t hesitate to call for help,” Melheim says.

The mental and emotional impact of fraud on older adults 

Older adults are often targeted by scammers—and the emotional toll can be especially heavy. In 2024 alone, the FBI received more than 147,000 fraud complaints from people over 60, a 46 percent jump from the previous year. And experts believe that’s just the tip of the iceberg.

Expericing fraud later in life can feel particularly devastating. It may compound existing challenges like grief, health issues, or social isolation. Research from the Centers for Disease Control and Prevention (CDC) suggests loneliness is common among older adults, especially after the loss of a spouse or close friends. That sense of isolation can make someone more vulnerable to scams—and more shaken by the aftermath.

It’s also important to recognize that elder fraud is a form of elder abuse. And for every case that’s reported, many more likely go unspoken. That’s why it’s so important for loved ones and caregivers to stay connected, check in often, and create space for open conversations about money and online safety.

Pride and independence can also play a role. Some older adults may hesitate to report fraud out of fear of seeming incapable or burdensome. But the truth is, anyone can fall victim to a scam. Offering reassurance—and reminding them that asking for help is a sign of strength—can go a long way in supporting their recovery.

A closer look at fraud's ripple effects 

Beyond emotional strain, victims may face long-term impacts on their physical health.

Chronic stress is known to contribute to conditions like high blood pressure, heart disease, and digestive issues. Anxiety and depression can also weaken the immune system over time.

In some cases, victims might avoid online banking, shopping, or social interactions out of fear, leading to increased isolation and decreased quality of life.

The emotional scars can linger, but the good news is, with support and proactive steps, recovery is absolutely possible.