WHAT TO DO IF YOU SUSPECT IDENTITY THEFT

A person can follow all the rules and recommendations for keeping their personal information secure, and still become the victim of identity theft. Consumers were powerless in the Experian data breach of 2017 and the Target hack of 2015. No one is completely safe, so you must be prepared.

If you think you may be the victim of identity theft – even if you just misplaced your wallet or were part of a data breach like the Target customers, it’s important to act swiftly and carefully. Taking measures to protect yourself even before you spot suspicious activity can save you a world of trouble. Follow these steps in any situation in which your personal information may have been compromised:

STEP 1: NOTIFY LENDERS AND THE BANK

Alert all financial institutions where you do business, starting with your bank and credit cards.

Dealing with your credit card companies should be relatively easy, as long as you alert them to the fraud as quickly as possible. The Fair Credit Billing Act specifies that a victim’s maximum liability for unauthorized charges to a credit account is $50, but many credit card companies are insured so well that their customers assume no liability in cases of fraud.

The aftermath of an identity breach can be a little more stressful when dealing with the banks. According to the Electronic Fund Transfer Act, you have two days to report unauthorized activity for the $50 maximum liability limit. After two days, the maximum liability increases to $500 for up to 60 days after the last mailed statement (or the statement which should have alerted you to the fraud). If you wait longer than 60 days, you may not have any protection.

STEP 2: CONTACT A CREDIT BUREAU

Contact any of the three credit reporting bureaus and alert them that you may be the victim of identity theft. Contacting just one bureau will lead to all bureaus placing a fraud alert on your credit report. The fraud alert lasts one year and makes it difficult for thieves to open accounts in your name. For instance, if you attempt to get a new credit card when a fraud alert is on your credit report, the lender is required to contact you directly to complete a verification check.

STEP 3: CHECK YOUR CREDIT REPORTS

When you place a fraud alert on your credit report, you receive access to one free report from each of the bureaus. Over the course of the next six months to a year, get at least one of these free reports from each of the bureaus and check for the following:

• unauthorized activity on any of your accounts
• new accounts that you didn’t open
• hard inquiries
• personal information that isn’t yours
• new employers listed

If you spot suspicious activity on your credit report, you have a pretty good idea you’ve been a victim. At this point, you’ll want to take additional measures.

STEP 4: PUT A CREDIT FREEZE ON YOUR CREDIT REPORT

A credit freeze is like an amplified version of the fraud alert. With a credit freeze, the credit reporting bureaus are restricted from providing your credit report to lenders. This prevents new accounts from being opened in your name. This service costs about $10 per credit bureau (the fee may be waived with a police report – check your state rules for more details).

STEP 5: CONTACT THE FTC

The Federal Trade Commission helps consumers with the aftermath of identity theft. The FTC will generate an Identity Theft Report which you can use when dealing with any businesses to get your credit back on track. Print this report.

After filing the report, the FTC will help prepare a plan for recovery, assist you with next steps, and provide necessary contact information, forms and templates. You can do all of this online at https://www.identitytheft.gov or by calling (877) 438-4338.

STEP 6: CONTACT THE POLICE

Although it may not be necessary depending on the nature of the theft, it’s recommended that you file a report of stolen identity with your local police station. You will need the FTC Identity Theft Report and any documents that reflect the theft (such as credit reports, communications with lenders, or statements).

The police will file a report on your behalf. Ask for a copy of this report. If they cannot give it to you, write down the police report number and officer in charge’s name on your FTC Report. Then, ask them to sign the form.

STEP 7: CONTACT LENDERS AND FINANCIAL INSTITUTIONS AGAIN

Use the letter templates provided by the FTC to contact all necessary financial institutions. In addition to this letter, you will need to provide copies of the FTC report, police report, and any additional documentation that pertains to the identity theft and your specific account through that financial institution.

Ask that the financial institutions provide you with copies of any documentation they have regarding fraudulent activity.

STEP 8: RECONTACT CREDIT BUREAUS

Send all relevant documents (especially the FTC and police-issued reports) to the credit report to get any fraudulent activity removed from your account.

STEP 9: RESET YOUR PASSWORDS

It’s a good idea to reset your passwords on all your accounts if there has been a data breach. Doing so will provide extra protection against continued attempts of theft.

STEP 10: CONSIDER OTHER STEPS

Depending on the level of theft, you may want to consider taking the following additional steps:

• Contact the Social Security Office
• Replace missing personal identification
• Contact telephone and utility companies
• Contact any organization which provides government benefits, investments, or students loans

CREDIT MONITORING SERVICES

Another option is to sign up with a credit monitoring service. As the name implies, credit monitoring services will perform routine checks on your credit history and alert you of any changes or suspicious activity. There are many credit monitoring services online, including LifeLock, PrivacyGuard, and IdentityGuard.

These companies will often entice you with offers of free credit reports or scores, but they are not truly free. Once you sign up, you will be required to pay for the monitoring services. Despite the cost, if you are currently working to improve your credit rating, or if you’ve been the victim of identity theft, signing up for a credit monitoring service may be a good idea.