Technology

Why physical ID theft is harder to fix than credit card fraud

Published

2 weeks ago

February 15, 2026

Why physical ID theft is harder to fix than credit card fraud

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It started with a voicemail from a Hertz rental car location in Miami, Florida. A 57-year-old woman in Los Alamitos, California, was asked when she planned to return a Mercedes-Benz she had never rented. A thief had stolen her driver’s license, replaced the photo with their own and used it to rent the vehicle. The same identity was used to open a credit card account, book airline tickets and reserve hotel stays. By the time she learned what happened, the fraud involved businesses in multiple states.

Clearing her name required police reports in two jurisdictions, written disputes with the credit card issuer and repeated contact with the rental company and hotels. Her accounts were frozen while she submitted notarized copies of her identification and signed fraud affidavits. The process lasted more than a week. She reported losing $78,500 and spent nearly 10 days dealing with the fallout from one stolen ID.

Credit card fraud is usually limited to a single account number. Physical ID theft gives someone the ability to act as you in the real world. As a result, the cleanup process is longer, more intrusive and often tied to your legal record.

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5 MYTHS ABOUT IDENTITY THEFT THAT PUT YOUR DATA AT RISK

A stolen driver’s license can allow someone to rent cars, open accounts and sign contracts in your name. (Photo by Silas Stein/picture alliance via Getty Images)

How credit card fraud recovery works

Under the Fair Credit Billing Act, you report unauthorized charges to the card issuer within 60 days of the statement date. Federal law limits your liability to $50, and most major issuers waive that entirely. The bank cancels the compromised card number, issues a replacement and removes the disputed charges after an investigation. You may need to confirm transactions and sign a fraud affidavit. The account number changes. Your name, driver’s license and Social Security number stay the same. In most cases, fraud is resolved within one or two billing cycles. That structure gives consumers clarity. There is one issuer, one investigation and one account to correct.

Why physical ID theft recovery is more complicated

Physical ID theft creates problems that go far beyond one financial account. When someone uses your driver’s license, they step into your legal identity. Start with reporting requirements. Most states require you to file a police report before the DMV will issue a replacement linked to fraud. That report number becomes part of your official record. If the misuse happened in another state, you may need to file a second report there.

Next, understand what replacing the card actually does. A new physical card does not erase prior activity. Rental contracts, utility accounts, hotel stays, or police interactions tied to the stolen license still carry your name and license number. Fixing those records takes work. You must contact each business directly and submit documentation. No central agency reverses everything at once. Each company sets its own rules and timeline.

The stakes can rise quickly. For example, if someone abandons a rental car or commits a crime using your stolen ID, law enforcement databases may record your name. At that point, the situation shifts from financial inconvenience to legal exposure.

HOW TO PROTECT A LOVED ONE’S IDENTITY AFTER DEATH

Police reports and formal disputes are often required before businesses will remove fraudulent records. (Kurt “Cyberguy” Knutsson)

How to prove physical ID theft was not yours

With credit card fraud, the issuer investigates the charge. With physical ID theft, businesses and agencies often require you to prove that you did not authorize the activity. That process usually starts at IdentityTheft.gov. The FTC generates an Identity Theft Report, which serves as an official statement of fraud. Most banks, collection agencies and rental companies will not proceed without it.

You may also need:

A local police report
A copy of your driver’s license
A notarized identity affidavit
Proof of residence tied to the date of the fraud

When thieves open fraudulent accounts in your name, dispute each one separately. Act quickly. Send a written response within 30 days of the first collection notice to protect your rights under federal law. Fraud that appears on your credit report requires another step. Contact Equifax, Experian and TransUnion individually and submit formal disputes with supporting documentation. The credit bureaus then have up to 30 days to complete their investigations. No central agency manages these corrections for you. Instead, every company sets its own documentation rules and timeline. Therefore, you must track deadlines, follow up consistently and keep detailed records of every communication.

You cannot simply replace your driver’s license number after identity theft

When a credit card number is stolen, the bank issues a new one. When a driver’s license is stolen, the number usually remains the same. In California, if your driver’s license is lost or stolen, you can request a replacement card through the DMV online system or at a field office. The official process gets you a new physical card. No new license number is automatically assigned when the card is stolen.

If there is identity misuse tied to the license number, the DMV fraud review process allows you to submit documentation, including police reports, to support an identity theft claim before they take further action. A Social Security number is even harder to change. The Social Security Administration approves new numbers only in cases involving continued harm. Applicants must provide extensive documentation and appear in person.

A stolen physical ID, such as your license, includes:

Full legal name
Date of birth
Address
Driver’s license number
Signature

That information is sufficient for in-person identity checks, rental contracts, certain loan applications and travel-related transactions.

Credit monitoring alerts can help you detect identity misuse before it spreads across multiple accounts. (Kurt “CyberGuy” Knutsson)

Why ongoing identity protection matters

There is no single agency that tracks misuse of your driver’s license across rental companies, lenders, collection agencies and law enforcement systems. That burden falls on you.

Identity theft services monitor your identity across all three credit bureaus and alert you to new credit inquiries, account openings and changes to your credit file. If fraud appears, you are assigned a dedicated U.S.-based case manager who helps:

File disputes with Equifax, Experian and TransUnion
Prepare and submit FTC Identity Theft Reports
Contact creditors and collection agencies
Track documentation deadlines and responses
Assist with reimbursement claims when eligible

Plans can include identity theft insurance of up to $1 million per adult to cover eligible expenses such as lost wages, legal fees and document replacement costs related to identity theft recovery.

No service can prevent every misuse of a stolen ID. But when the issue involves police reports, credit bureaus, tax agencies and collection accounts, having structured support can make all the difference.

The California woman in this case was not enrolled in an identity theft protection service. Some businesses may reverse fraudulent charges, but it is unclear whether she recovered the full $78,500.

See my tips and best picks on how to protect yourself from identity theft at Cyberguy.com

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Kurt’s key takeaways

Credit card fraud follows a defined path. You report the charge, the issuer investigates and your account number changes. In most cases, the disruption ends there. Physical ID theft moves differently. It spreads across rental companies, hotels, credit bureaus and sometimes law enforcement databases. Instead of one dispute, you may face several. Instead of replacing a number, you must protect a permanent identity marker tied to your name. That shift matters. A stolen driver’s license carries your legal identity into the real world. Therefore, recovery demands documentation, patience and persistence. Each business sets its own rules. Each agency runs its own timeline. You coordinate the process. The lesson is clear. Protecting your financial accounts is critical. However, protecting your physical identification may be even more important. Once someone uses it in person, the cleanup becomes personal, procedural and time-consuming. Layered monitoring, early alerts and fast reporting reduce long-term damage. The faster you respond, the more control you keep.

Have you ever dealt with physical ID theft, and did the recovery process take longer than you expected? Let us know your thoughts by writing to us at Cyberguy.com

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Kurt “CyberGuy” Knutsson is an award-winning tech journalist who has a deep love of technology, gear and gadgets that make life better with his contributions for Fox News & FOX Business beginning mornings on “FOX & Friends.” Got a tech question? Get Kurt’s free CyberGuy Newsletter, share your voice, a story idea or comment at CyberGuy.com.

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Technology

Defense secretary Pete Hegseth designates Anthropic a supply chain risk

Published

12 hours ago

February 27, 2026

Press Room

Defense secretary Pete Hegseth designates Anthropic a supply chain risk

This week, Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon.

Our position has never wavered and will never waver: the Department of War must have full, unrestricted access to Anthropic’s models for every LAWFUL purpose in defense of the Republic.

Instead, @AnthropicAI and its CEO @DarioAmodei, have chosen duplicity. Cloaked in the sanctimonious rhetoric of “effective altruism,” they have attempted to strong-arm the United States military into submission – a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives.

The Terms of Service of Anthropic’s defective altruism will never outweigh the safety, the readiness, or the lives of American troops on the battlefield.

Their true objective is unmistakable: to seize veto power over the operational decisions of the United States military. That is unacceptable.

As President Trump stated on Truth Social, the Commander-in-Chief and the American people alone will determine the destiny of our armed forces, not unelected tech executives.

Anthropic’s stance is fundamentally incompatible with American principles. Their relationship with the United States Armed Forces and the Federal Government has therefore been permanently altered.

In conjunction with the President’s directive for the Federal Government to cease all use of Anthropic’s technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service.

America’s warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final.

Technology

What Trump’s ‘ratepayer protection pledge’ means for you

Published

12 hours ago

February 27, 2026

Press Room

What Trump’s ‘ratepayer protection pledge’ means for you

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When you open a chatbot, stream a show or back up photos to the cloud, you are tapping into a vast network of data centers. These facilities power artificial intelligence, search engines and online services we use every day. Now there is a growing debate over who should pay for the electricity those data centers consume.

During President Trump’s State of the Union address this week, he introduced a new initiative called the “ratepayer protection pledge” to shift AI-driven electricity costs away from consumers. The core idea is simple.

Tech companies that run energy-intensive AI data centers should cover the cost of the extra electricity they require rather than passing those costs on to everyday customers through higher utility rates.

It sounds simple. The hard part is what happens next.

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At the State of the Union address Feb. 24, 2026, President Trump unveiled the “ratepayer protection pledge” aimed at shielding consumers from rising electricity costs tied to AI data centers. (Nathan Posner/Anadolu via Getty Images)

Why AI is driving a surge in electricity demand

AI systems require enormous computing power. That computing power requires enormous electricity. Today’s data centers can consume as much power as a small city. As AI tools expand across business, healthcare, finance and consumer apps, energy demand has risen sharply in certain regions.

Utilities have warned that the current grid in many parts of the country was not built for this level of concentrated demand. Upgrading substations, transmission lines and generation capacity costs money. Traditionally, those costs can influence rates paid by homes and small businesses. That is where the pledge comes in.

What the ratepayer protection pledge is designed to do

Under the ratepayer protection pledge, large technology companies would:

Cover the full cost of additional electricity tied to their data centers
Build their own on-site power generation to reduce strain on the public grid

Supporters say this approach separates residential energy costs from large-scale AI expansion. In other words, your household bill should not rise simply because a new AI data center opens nearby. So far, Anthropic is the clearest public backer. CyberGuy reached out to Anthropic for a comment on its role in the pledge. A company spokesperson referred us to a tweet from Anthropic Head of External Affairs Sarah Heck.

“American families shouldn’t pick up the tab for AI,” Heck wrote in a post on X. “In support of the White House ratepayer protection pledge, Anthropic has committed to covering 100% of electricity price increases that consumers face from our data centers.”

That makes Anthropic one of the first major AI companies to publicly state it will absorb consumer electricity price increases tied to its data center operations. Other major firms may be close behind. The White House reportedly plans to host Microsoft, Meta and Anthropic in early March to discuss formalizing a broader deal, though attendance and final terms have not been confirmed publicly.

Microsoft also expressed support for the initiative.

“The ratepayer protection pledge is an important step,” Brad Smith, Microsoft vice chair and president, said in a statement to CyberGuy. “We appreciate the administration’s work to ensure that data centers don’t contribute to higher electricity prices for consumers.”

Industry groups also point to companies such as Google and utilities including Duke Energy and Georgia Power as making consumer-focused commitments tied to data center growth. However, enforcement mechanisms and long-term regulatory details remain unclear.

CHINA VS SPACEX IN RACE FOR SPACE AI DATA CENTERS

The White House plans talks with Microsoft, Meta and Anthropic about shifting AI energy costs away from consumers. (Eli Hiller/For The Washington Post via Getty Images)

How this could change the economics of AI

AI infrastructure is already one of the most expensive technology buildouts in history. Companies are investing billions in chips, servers and real estate. If firms must also finance dedicated power plants or pay premium rates for grid upgrades, the cost of running AI systems increases further. That could lead to:

Slower expansion in some markets
Greater investment in renewable energy and storage
More partnerships between tech firms and utilities

Energy strategy may become just as important as computing strategy. For consumers, this shift signals that electricity is now a central part of the AI conversation. AI is no longer only about software. It is also about infrastructure.

The bigger consumer tech picture

AI is becoming embedded in smartphones, search engines, office software and home devices. As adoption grows, so does the hidden infrastructure supporting it. Energy is now part of the conversation around everyday technology. Every AI-generated image, voice command or cloud backup depends on a power-hungry network of servers.

By asking companies to account more directly for their electricity use, policymakers are acknowledging a new reality. The digital world runs on very physical resources. For you, that shift could mean more transparency. It also raises new questions about sustainability, local impact and long-term costs.

ARTIFICIAL INTELLIGENCE HELPS FUEL NEW ENERGY SOURCES

As AI expansion strains the grid, a new proposal would require tech firms to fund their own power needs. (Sameer Al-Doumy/AFP via Getty Images)

What this means for you

If you are a homeowner or renter, the practical question is simple. Will this protect my electric bill? In theory, separating data center energy costs from residential rates could reduce the risk of price spikes tied to AI growth. If companies fund their own generation or grid upgrades, utilities may have less reason to spread those costs among all customers.

That said, utility pricing is complex. It depends on state regulators, long-term planning and local energy markets.

Here is what you can watch for in your area:

New data center construction announcements
Utility filings that mention large commercial load growth
Public service commission decisions on rate adjustments

Even if you rarely use AI tools, your community could feel the effects of a nearby data center. The pledge is intended to keep those large-scale power demands from showing up in your monthly bill.

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Kurt’s key takeaways

The ratepayer protection pledge highlights an important turning point. AI is no longer only about innovation and speed. It is also about energy and accountability. If tech companies truly absorb the cost of their expanding power needs, households may avoid some of the financial strain tied to rapid AI growth. If not, utility bills could become an unexpected front line in the AI era.

As AI tools become part of daily life, how much extra power are you willing to support to keep them running? Let us know by writing to us at Cyberguy.com.

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Technology

Here’s your first look at Kratos in Amazon’s God of War show

Published

24 hours ago

February 27, 2026

Press Room

Here’s your first look at Kratos in Amazon’s God of War show

Amazon has slowly been teasing out casting details for its live-action adaptation of God of War, and now we have our first look at the show. It’s a single image but a notable one showing protagonist Kratos and his son Atreus. The characters are played by Ryan Hurst and Callum Vinson, respectively, and they look relatively close to their video game counterparts.

There aren’t a lot of other details about the show just yet, but this is Amazon’s official description:

The God of War series storyline follows father and son Kratos and Atreus as they embark on a journey to spread the ashes of their wife and mother, Faye. Through their adventures, Kratos tries to teach his son to be a better god, while Atreus tries to teach his father how to be a better human.

That sounds a lot like the recent soft reboot of the franchise, which started with 2018’s God of War and continued through Ragnarök in 2022. For the Amazon series, Ronald D. Moore, best-known for his work on For All Mankind and Battlestar Galactica, will serve as showrunner. The rest of the cast includes: Mandy Patinkin (Odin), Ed Skrein (Baldur), Max Parker (Heimdall), Ólafur Darri Ólafsson (Thor), Teresa Palmer (Sif), Alastair Duncan (Mimir), Jeff Gulka (Sindri), and Danny Woodburn (Brok).

While production is underway on the God of War series, there’s no word on when it might start streaming.