5 Steps to Take Immediately If You've Been a Victim of Identity Theft

5 Steps to Take Immediately If You’ve Been a Victim of Identity Theft

Identity theft has topped the list of consumer complaints filed with the FTC for 13 consecutive years and there’s no evidence that this year it won’t make the list for the 14th. Just how many victims of identity theft are there each year? While we don’t yet have the figures for 2013,  a Javeline report puts the numbers from 2012 at 12.6 million. Factor in the more than 70 million Americans impacted by the recent Target and Niemen Marcus data breaches, and it’s clear why identity theft is a major concern for many Americans.

Identity theft takes many forms. Some of the most common include:

·         Credit card fraud

·         False applications for new credit

·         Fraudulent withdrawals from a bank account

·         Fraudulent use of telephone calling cards

·         Fraudulent use of an IP address in order to engage in illegal acts online

·         Fraudulent use of medical care

·         Social security fraud (for tax and employment fraud)

If you know or suspect that you are the victim of identity theft, there are steps you should take immediately to stop the theft and minimize the damage.

1. Put a Fraud Alert on Your Credit Reports 

A fraud alert puts a red flag on your credit report and notifies lenders and creditors that they should take extra steps to verify your identity before extending credit. To place a 90-day fraud alert on all three of your credit reports, you only need to contact one of the three credit reporting agencies (Experian, Equifax, or TransUnion). When you place the initial alert, they will automatically notify the other two agencies for you.

Another option—and a more effective identity theft prevention measure—is to place a security freeze on each of your credit reports. A freeze prevents creditors (except those with whom you already do business) from accessing your credit report(s) at all. New applications will automatically be declined. With a security freeze in place, you will need to take extra steps if you wish to apply for new credit. Each agency has a procedure for temporarily “thawing” your file in order to allow a legitimate application to be processed and unlike a fraud alert, you’ll need to contact each agency individually to place a freeze on each of your reports. See more information about security freezes here: Experian, Equifax and TransUnion.

When you place a fraud alert on your credit reports, you’re entitled to a free copy of your credit report from each of the three agencies. Be sure to obtain them. If you find fraudulent items on your credit report(s), the simplest way to begin the dispute process is to click the item while viewing your credit report online. Some items must be disputed in writing and with supporting documentation. Hard inquiries cannot be disputed, but may give you a clue as to where a thief has applied for credit in your name.

Initial fraud alerts are free and remain in place for 90 days. In some cases, security freezes and extended fraud alerts incur a small fee, but these services are free to victims of identity theft.

2. Contact Any Institution Directly Affected

For example, if you know your credit card was stolen, report the theft to the credit card issuer. If your checkbook was stolen, contact your bank.

For this step it’s really helpful if you’ve prepared a list of institutions and phone numbers in advance. You don’t have to write account numbers down on the list – that would be just one more way for a thief to gain access to your personal information. But do keep a list of what’s in your wallet, along with the contact information for each item.

3. Contact the Federal Trade Commission (FTC)

File an Identity Theft Affidavit and create an Identity Theft Report. You can file your report online, by phone (toll-free): 1-877-ID THEFT (877-438-4338); TDD (toll-free): 1-866-653-4261, or by mail — 600 Pennsylvania Ave., Washington DC 20580.

The FTC will provide you with information about what to do next, depending on what type of fraud was (or may have been) committed.

4. File a Police Report

To complete the Identity Theft Report, you’ll need to contact your local law enforcement office and report the theft. Be sure to get a copy of the police report and/or the report number. Both your police report and the FTC Identity Theft Affidavit combine to create your Identity Theft Report. Your Identity Theft Report will help you when working with the credit reporting agencies or any other companies the identity thief may have used to open accounts in your name.

5.  Protect Your Social Security Number

If your social security number was or may have been compromised, contact the Social Security Administration (800-269-0271) and the Internal Revenue Service (800-829-0433).

It’s important to talk to the SSA if you have reason to believe your social security number has been compromised, even if you don’t yet see any evidence of financial fraud. A thief could be planning to swipe your tax refund, or to obtain employment in your name.

In addition to these five steps, if you have reason to believe the identity thief may have submitted a fraudulent change-of-address to the post office or has used the U.S. mail to commit the fraud against you, contact the Postal Inspection Service, which is the law enforcement and security branch of the post office. Fill out the online form.

This list is not exhaustive. These are only some of the first few steps. Indeed, clearing the wreckage of identity theft can be a laborious and complex process. For more information about how to prevent or recover from identity theft, the U.S. Department of Justice and the Federal Trade Commission offer a wealth of information and will walk you through the steps.

How to Check Your Child's Credit Report

How to Check Your Child’s Credit Report

I’ve just obtained my 4-year old’s first passport, complete with adorable photo. We’re planning a family vacation in Nova Scotia, Canada this fall to enjoy the changing colors and attend a Celtic music festival. We’ll also visit a working farm where she’ll help milk a cow and churn butter. But while I plan our hikes and hayrides, something else entirely is on my mind…My child’s identity.

You see, her original birth certificate never came back to me from the Passport office. I didn’t request expedited service since we had plenty of time and there seemed to be no need to incur the additional cost. So her documents – a U.S. passport, a U.S. passport card and her original birth certificate – were returned to me in three separate first-class mailings. No tracking numbers. No signatures required for delivery. No evidence whatsoever that any of the three were ever sent or received.

To me, this is a deeply disturbing shortcoming in the Passport office’s process. At the time we submitted the passport application, I was not offered any option to have the documents returned with tracking numbers or I would have gladly taken it. Now, there is simply no way for me to know if her birth certificate was lost or simply set aside for later use by an enterprising identity thief.

Child identity theft

Children are perfect candidates for identity theft.  With a beautifully clean credit history, the sky is the limit for an intelligent and careful scam artist. In most cases, the perpetrator is a friend or family member. But many cases involve enterprising strangers who count on the probability that the theft won’t be detected for many years.

Child identity theft is much harder to detect and resolve than adult identity theft. Where adults are often made aware of fraudulent activity on the same day it happens, children can be victimized for a year or longer before any fraud is detected. And the fraud can begin many years after the initial opportunity (like the chance to pocket a birth certificate) presented itself. Adults spend an average of 12 hours over the course of a couple of weeks to resolve identity fraud against them, but child identity fraud can take nearly a year to detect and at least 44 hours over several months to clean up.

It’s wise to periodically check your child’s credit. It is critical to do so if you have reason to believe your child’s identity may have been compromised. If you have listed your child as a joint account holder at a financial institution, he or she may have a credit report. Otherwise, your child should not have a file at all.

How to check your child’s credit report

For adults, a copy of your credit report is only a click away. Simply visit AnnualCreditReport.com and verify your identity to receive a free copy every 12 months from each of the three major credit reporting agencies. For children, it’s not so simple.

Equifax, Experian and TransUnion allow parents and guardians whose identities have been verified to view a minor’s credit file. Here are the steps to find out if your child has one:

TransUnion: When it comes to checking your child’s credit, TransUnion is the friendliest. Simply complete the Child Identity Theft Inquiry form online. TransUnion will investigate and let you know whether any credit data exists. If a file exists for your child, you’ll need to provide some documentation to proceed. TransUnion’s email will tell you what to do next.

Experian: Mail a written request for information about your child’s credit report to Experian, P.O. Box 9554, Allen TX 75013. Your request must include:

·         A copy of your driver’s license

·         Proof of your address (bank statement, utility bill, etc.)

·         A copy of the child’s birth certificate

·         A copy of the child’s social security card

·         The child’s full name, including any suffix (Jr., III, etc.)

·         The child’s date of birth

·         Previous addresses for the last two years

All copies must be legible. Read more here. You can verify the above process by calling 1-888-397-3742. The phone prompts for this task are not terribly intuitive. To get the information, I pressed:

·         2 (I don’t need information about Experian Credit Educator)

·         2 (I don’t need to hear my rights as a California resident)

·         2 (I want to learn about fraud prevention services)

·         1 (I believe my information is being used fraudulently)

·         1 (I am calling about my minor child)

Equifax: Mail a written request to Equifax Information Services LLC – Minor Child, P.O. Box 105139, Atlanta, GA 30348-5139, and include the same items (listed above). Read more here.

Keep copies of all correspondence for your records.

If your child is found to have a credit report and it’s not the result of financial accounts you were aware of, you will need to place a fraud alert on his or her file. You’ll also need to take steps to remove fraudulent data from the report and notify any creditors. If you haven’t done so already, contact the police and file an identity theft report with the Federal Trade Commission. Finally, you may wish to freeze your child’s credit report.