How to Respond to Identity Theft
You've just received that stomach-churning call from a bank asking you to repay a loan you never took out. Or your credit monitoring service sends you an urgent warning about a new account opened in your name. What do you do now?
If despite all your precautions you become a victim of identity theft, it's vitally important that you have the right answers quickly, because the hours and days you can save immediately after you discover you've been a victim could translate into dollars and heartache saved down the road. It's also very important that you remain calm so that you can think straight. One of the good things to come out of the focus of the media on identity theft is that most organizations understand what you're going through and should be very sympathetic.
The first thing you need to do is implement that response plan that I hope you created. Or at least plan to create in the near future!
The plan should include things like the contact information for all the main credit reporting agencies; the types and numbers of all credit cards in your name; contact information for all bank and credit card accounts; and copies of blank identity theft affidavits. Most victims panic when they discover they've been a victim, and will probably forget much of the really important information. So a simple personal plan with a clear set of rules to follow should be a great help.
1. Place A Fraud Alert
Notify any of the three main credit reporting agencies - Experian®, Equifax®, and TransUnionSM, that you suspect you have been a victim of identity theft, and ask that a fraud alert be placed on your credit file.
This should help prevent further damage if an identity thief has successfully applied for credit in your name, and help prevent further credit abuse.
The three main credit reporting agencies are aware of the problem of identity theft and usually act quickly to such requests. The fraud alert can last up to 90 days but can be extended by request.
2. Complete An Identity Theft Affidavit
You will need to complete an identity theft affidavit form. This form can be used to halt any hasty action by creditors and debt collectors, and can be downloaded from the Federal Trade Commission (FTC) web site at http://www.ftc.gov/idtheft/.
The affidavit has two parts: Part 1 asks for information about you and the thefts. Part 2 asks for information about each specific fraudulent account in question.
You'll need this form when working with creditors and others who may need evidence that you are the victim and not simply trying to avoid paying your debts.
You will probably also be required to send a copy of the affidavit to each affected creditor, along with any information about the accounts fraudulently opened in your name, as well as a copy of the police report.
And be sure to always send an id theft affidavit by certified mail and request a return receipt.
3. File A Police Report
You should also file a report with your local police department. Make sure you file a report with the police department in the city where you live, and not where you work, traveled to, or where you think the crime was committed.
And make sure you keep a copy of the completed police report and a name and number to contact.
4. Contact Your Bank and Credit Card Companies
Contact all affected bank and credit card companies and if necessary close any affected accounts. If checks have been misused, place a stop order on any outstanding checks that you're not sure about.
Contact any creditors, such as stores or utility companies, with whom your name has been used fraudulently. You should explain the circumstances, offer to provide a copy of the ID theft affidavit, and request copies of any documentation such as loan applications and transaction records.
If theft from a bank account is involved, ideally you should close that checking account immediately and open a new one, as well as cancel your ATM and credit cards and request new ones. And make sure you always create a new (and strong) password for any new accounts.
5. Keep a Record
Keep copies of all fraudulent transactions and of all correspondence with banks and creditors concerning these transactions.
6. Contact the Postal Inspectors
If mail has been stolen or a mailing address has been fraudulently used by an identity thief, you should report it to the postal inspectors. You can find the contact information for your nearest office on the USPS web site at www.usps.gov.
7. Contact the IRS
If you suspect that your Social Security number has been misused, you should report it to the Social Security Administration, and contact information can be found at www.irs.gov.