What to Do If Your Identity Is Stolen | Credit 101 Ep. 204

Identity theft can be a stressful and overwhelming experience. Acting swiftly and methodically can help minimize the damage and restore your financial security. Here’s a comprehensive guide on what to do if your identity is stolen:

1. Stay Calm and Assess the Situation

• Recognize the Signs: Unfamiliar charges on your accounts, missing bills, or notices about accounts you didn’t open can indicate identity theft.
• Gather Information: Collect all relevant documents, emails, or notifications that suggest your identity has been compromised.

2. Place a Fraud Alert on Your Credit Reports

• Contact One Credit Bureau: Reach out to any one of the three major credit bureaus to place a fraud alert. They are required to inform the other two.
  • Equifax: 1-800-525-6285 or Equifax Fraud Alert
  • Experian: 1-888-397-3742 or Experian Fraud Alert
  • TransUnion: 1-800-680-7289 or TransUnion Fraud Alert
• Duration: An initial fraud alert lasts for one year and can be renewed.
• Benefits: Creditors must verify your identity before opening new accounts in your name.

3. Obtain and Review Your Credit Reports

• Request Free Reports: Visit AnnualCreditReport.com or call 1-877-322-8228 to request free copies of your credit reports from Equifax, Experian, and TransUnion.
• Examine Carefully: Look for unfamiliar accounts, inquiries, or addresses that you don’t recognize.
• Document Findings: Note any discrepancies or fraudulent activities for reporting purposes.

4. Report Identity Theft to the Federal Trade Commission (FTC)

• File an Identity Theft Report: Visit IdentityTheft.gov to report the theft and create a personalized recovery plan.
• Receive a Recovery Plan: The FTC will provide an Identity Theft Affidavit and step-by-step guidance.
• Print Documents: Keep copies of your report and recovery plan for your records.

5. File a Police Report

• Contact Local Law Enforcement: Report the identity theft to your local police department.
• Provide Documentation: Bring your FTC Identity Theft Affidavit, proof of identity, and any evidence of the theft.
• Obtain a Police Report: A police report may be required by creditors as proof of the crime.

6. Notify Affected Companies and Institutions

• Contact Fraud Departments: Reach out to the fraud departments of each business where fraudulent activity occurred.
• Close or Freeze Accounts: Close compromised accounts and open new ones with new passwords and PINs.
• Dispute Unauthorized Charges: Provide copies of your FTC Identity Theft Report and police report if required.

7. Consider a Credit Freeze

• Place a Security Freeze: Contact each credit bureau to freeze your credit reports.
• Benefits: Prevents new creditors from accessing your credit reports, making it difficult for thieves to open new accounts.
• Manage Access: You can lift the freeze temporarily when applying for new credit.

8. Update Passwords and Security Measures

• Change Passwords: Update passwords for all your accounts, using strong, unique combinations.
• Enable Two-Factor Authentication: Add an extra layer of security to your accounts where available.
• Secure Personal Information: Be cautious about sharing personal information online or over the phone.

9. Monitor Your Accounts Regularly

• Check Statements: Review bank and credit card statements frequently for unauthorized transactions.
• Use Credit Monitoring Services: Consider enrolling in a credit monitoring service that alerts you to changes in your credit report.
• Stay Vigilant: Keep an eye on your mail and email for any suspicious activity.

10. Correct Your Credit Reports

• Dispute Errors: Write to the credit bureaus to dispute fraudulent information, including accounts or inquiries you didn’t initiate.
• Provide Documentation: Include copies of your FTC Identity Theft Report and police report.
• Follow Up: Ensure the credit bureaus remove or correct the fraudulent information.

11. Handle Specific Types of Identity Theft

• Tax Identity Theft: If someone used your SSN to file taxes, contact the IRS at 1-800-908-4490 and visit the IRS Identity Theft Central.
• Medical Identity Theft: Review your medical records and contact healthcare providers to dispute unauthorized services.
• Criminal Identity Theft: If your name has been used in legal actions, consult with law enforcement and legal professionals to clear your record.

12. Educate Yourself and Prevent Future Theft

• Learn About Scams: Stay informed about common identity theft schemes.
• Protect Personal Information: Shred sensitive documents, use secure mailboxes, and be cautious with personal details.
• Review Privacy Settings: Adjust privacy settings on social media and other online platforms to limit the exposure of personal information.

Conclusion

Acting promptly and thoroughly is essential when dealing with identity theft. By following these steps, you can mitigate the damage, restore your financial integrity, and protect yourself from future incidents. Remember to keep detailed records of all communications and actions taken during this process.