If your identity is stolen, the first thing you need to do is report the crime to the Federal Trade Commission (FTC). The sooner the authorities are aware of identity theft, the faster you can get your name back and resolve any damages.
The problem is that most victims aren’t aware of any crime until it’s already occurred.
It’s not until they find an unexplained drop in credit scores, an unusual charge on their credit card statement, or otherwise that they suspect something is awry.
No one expects to be a victim of identity theft, so when it does happen, people are often unsure what to do. This article aims to address that issue by outlining the key steps to take when reporting identity theft.
The first action you should take is to report the identity theft to the FTC and obtain an Identity Theft Report. You can provide that report to creditors and businesses to prove you are indeed a victim of identity theft. In fact, you can even use the report instead of a police report in many cases.
The Identity Theft Report enables you to:
Many victims of identity theft instinctively feel it is appropriate to notify the police. However, the FTC, the principal law enforcement agency for identity theft, says that victims should file a report with local police only three times. Contact the police when:
If you do file a police report, show th
em a copy of your Identity Theft Report and give them as many details as you can.
You have a right by law under the Fair Credit Reporting Act (FCRA) to put a fraud alert on your three credit reports (Equifax, Experian, and TransUnion). Alternatively, you might consider freezing your credit reports to limit access to them and make it harder for thieves to open new accounts in your name.
Here’s what you need to know to determine whether you should put a fraud alert or a freeze on your credit reports:
Fraud alerts help protect your credit from unauthorized account openings. With a fraud alert in place, lenders must confirm your identity before approving new credit that is associated with your Social Security number.
There are two types of fraud alerts:
To enable an extended fraud alert, contact one of the three major credit reporting agencies using the contact information below. The credit bureau you contact will notify the other two credit bureaus on your behalf.
The credit bureau may ask you to complete a request form, and you’ll need to submit a copy of your FTC Identity Theft Report.
While a fraud alert allows companies to access your credit reports as long as they verify your identity and you grant them access, a credit freeze restricts most access to your credit reports, whether or not your identity can be verified. A credit freeze is the best way to ensure your credit isn’t used without your permission. It provides a mechanism to stop bleeding when identity theft occurs and helps prevent the creation of new credit accounts.
A fraud report requires an actual case of fraud. A freeze, on the other hand, is about preventing access to your account. A freeze may not be beneficial if you are already a victim of fraud, but it is an excellent preventive measure.
Keep in mind, a credit freeze helps stop thieves from opening new credit accounts, but it may not stop unauthorized use of your existing accounts. Additionally, companies you already do business with may still be able to access your credit reports.
Equifax
Equifax Consumer Fraud Division
P.O. Box 740256
Atlanta, GA 30374
1-800-525-6285
Experian
National Consumer Assistance
P.O. Box 9554
Allen, TX 75013
1-888-397-3742
TransUnion
Fraud Victim Assistance Department
P.O. Box 2000
Chester, PA 19016-2000
1-800-680-7289
Contact your creditors and any other companies affected by the identity crime immediately.
Fortunately, most credit cards offer zero-liability policies that protect their members who are victims of identity theft. But when it comes to credit card fraud, you are also covered by the Fair Credit Billing Act (FCBA), which limits your financial liability for fraudulent charges to $50.
Meanwhile, debit cards and electronic transfers are protected under the Electronic Fund Transfer Act (EFTC). This law stipulates that you must report unauthorized charges within two days of learning about any such losses or you could be on the hook for a maximum of $50. Reporting the loss between two and 60 days increases your liability up to $500, and reports made after 60 days can result in unlimited liability.
You will also want to cancel your credit and debit cards and have new replacement cards sent to you.
If a scammer opens a new account in your name, contact customer service to help close it. The company may require a written letter; in that case, you can use the sample letter the FTC provides on its website. It’s a good idea to keep records of the dates and times of your calls, as well as who you spoke with and the actions they advised.
If you are a victim of identity theft, the sooner you take the steps above the better. These steps are necessary to help stop criminals from continuing to inflict financial harm on you through the fraudulent use of your identity.
Settling identity theft issues can take several weeks or months. That’s why it’s important to act quickly to resolve the issues stemming from identity theft so you can get your identity back and put the ordeal behind you.