Identity theft is more rampant than most people think. In fact, in 2020, there were about 1.4 million identity theft cases, with a third of them being repeat cases. If you’re not too careful, you too could be a victim of identity theft.
Sadly, there’s nothing you can do to guarantee absolute immunity from identity theft. At any moment, anyone can steal your identity, and you won’t even know it. This can be quite a nerve-wracking experience, but it’s important that you keep calm.
Knowing what to do if someone steals your identity will go a long way in finding the perpetrator and clearing your name. Unfortunately, most people don’t have a clue what to do after someone steals their identity. If you happen to be one of them, don’t worry; we’re here to help.
Today, we’ll be looking at everything you need to do should you fall victim to identity theft.
What Is Identity Theft?
Identity theft or identity fraud is when someone masquerades as someone else by using their personal information. This information includes their social security number, address, bank account, and credit card number, among others. The assailant then uses the information for malicious intentions like transacting fraudulently.
Identity theft is a serious crime that can land the convicted up to three years in prison, but what about the victim?
What to Do If Someone Steals Your Identity
It’s important to act fast if you notice someone has stolen your identity. Here’s what to do if you fall victim to identity theft.
Contact the Police
The first thing to do when someone steals your identity is to contact the police. You can do so via a phone call or physically. The police will guide you on the best way forward and help you file an identity theft report.
As a rule of thumb, always file the police report where the crime took place. A police report helps keep your records straight. Most businesses and institutions also require a police report to validate your identity fraud claims.
Report to Your Bank and Affected Creditors
After filing your police report, the next step is to notify your bank and creditors of the incident. Credit card issuers will be quick to ensure that the culprit doesn’t make any unauthorized purchases. The company will put your credit card on hold until you resolve the whole matter.
Credit cards companies are known for being super lenient with identity fraud victims. In fact, most credit cards have a zero-liability policy for identity theft cases. A zero-liability policy means that the credit card company won’t be responsible for any charges they didn’t authorize.
In cases where the company doesn’t have this policy, the Fair Credit Billing Act will come to your rescue. The act states that credit cardholders should pay no more than $50 liability in case of identity theft. If you’re having trouble with your credit card company over liability, you can get help from financial justice now; they’ll help iron out the situation
There’s a chance that someone may want to open up accounts using your name and social security number. To be on the safe side, contact other companies and financial agencies and put them on high alert. That way, they can notify you of any suspicious activity involving your name or personal details
Report to the Federal Trade Commission
The Federal Trade Commission or FTC keeps a detailed record of identity fraud cases. While the FTC won’t carry out any investigations, they’ll provide useful information to the relevant authorities. This information will help the police and FBI apprehend the people behind your stolen identity.
What’s more, filing a report with the FTC is as easy as visiting a website. Head over to identity theft.com, and you’ll get instructions on how to file your report. You can even get a recovery plan and forms that you can use to aid police investigations.
It’s worth noting that you should only report identity fraud to the FTC. This doesn’t include a stolen credit card or stolen social security number. Your case only qualifies as identity theft if the perpetrator uses your personal information for financial gain.
Request a Fraud Alert on Your Credit Report
Next, you’ll have to ask for a fraud alert from the major credit bureaus, Equifax, Transunion, and Experian. If they grant your request, you’ll have a fraud alert on your credit report for an entire year. The alert will notify any company that requests your credit report that you may be a victim of identity theft.
This puts the creditor on high alert whenever you apply for a loan. The creditor will dig deeper to ensure that the person taking out the loan is you.
Initiate a Credit Freeze
A credit freeze precludes access to your credit reports. This means your credit report is off-limits to everyone except the credit bureaus.
To freeze your credit, you need to get in touch with all the credit bureaus. Freezing your credit will cost you absolutely nothing. You should also consider freezing your childrens’ credit because identity fraud may trickle down to them.
Enroll in a Credit Monitoring Service
A credit-monitoring service, as the name connotes, is a service that keeps an eye on your credit report for any suspicious activity. Most credit card companies offer this service for free as an incentive to attract clients. However, if yours doesn’t, you can sign up for a third-party credit monitoring service.
Check Your Credit Reports for Suspicious Activity
You’ll want to check your credit reports for suspicious activity to make sure you’re in the clear. You can get at least one free credit report from the credit bureaus. In fact, after the pandemic, credit reports are free.
As mentioned above, a good number of identity fraud cases are repeat cases. Ensure you stay extra vigilant to sidestep another identity theft occurrence.
Reclaim Your Identity in a Snap
Now that you know what to do if someone steals your identity, the ball is in your court. Remember, you can always reclaim your identity and put an end to the funny business. Everything will check out as long as you follow the above steps.
If you liked this piece, be sure to check out the other posts on the site for more informative content.
