Red flags
Red flags--like being denied credit, or refused a loan—are a tip off that someone out there is likely compromising your personal information.
Imagine this scenario:
You speak with the bank about why you were denied a loan--despite your solid financial history--only to find out that you are a victim of identity theft. Now what?
You'll need to act quickly, but DO take the time to organize your response! Don’t start calling or emailing creditors, or other financial institutions, until you’ve collected your evidence and reviewed this step-by-step guide to reporting identity theft.
1. Call all three credit bureaus fraud departments.
Ask each to put a fraud alert on your file so that no new credit can be issued in your name until they call you at a specified number. Remember to let the bureaus know that you are an identity theft victim: having an affidavit stating this will allow you to have alerts placed on your accounts for seven years, instead of the standard 90 days.
When you report identity theft fraud, the credit card bureaus must send you a free copy of your credit report. Report identity theft and all fraudulent or suspicious accounts that you want to dispute.
Contact the credit reporting bureaus:
Equifax: www.equifax.com. 800-525-6285.
Experian: www.experian.com. 888-397.5742
TransUnion: www.transunion.com. 800-680-7289
2. Close all compromised accounts.
• Eliminate all accounts, old and new, opened in your name. Be sure to include not only credit card companies but also service providers like your phone, cable TV, Internet, and utilities.
• Follow up these calls to report identity theft in writing for extra security. Ask them to classify the account closings as “closed at the customer’s request.â€
• The best way to close accounts and erase the changes you never made is by filing the ID Fraud Affidavit you can download from www.ftc.gov. (The FTC keeps a close eye on credit card identity theft.)
• Reopen your accounts with new numbers and fresh passwords. (Remember: it’s good practice to change your passwords frequently—and avoid using birthdays, your Social Security number or other personal information as your password.)
On each account your maximum liability is $50 on any false charges made by an identity thief.
• Credit fraud alerts cannot protect against the creation of fraudulent address, or phone changes that thieves use as the foundation for other illicit activities. You need to enroll with a service which can help you identity any fraudulent information of this type—then you can work with police and other agencies to address the problem.
2. File a police report.
You can stop the criminal’s actions, but it’s unlikely that he will be caught. Local police have neither the budget, nor the training to investigate.
Non-violent crimes against property are not seen as priorities. So they may be unable to help catch the criminal—and often the criminals are overseas, far beyond the reach of local authorities.
• But be patient and persistent. Remind the officer that without a police report you cannot stop the thief, or repair your credit.
• Help the investigating offer by giving him copies of your disputed credit report, collection letters, and your FTC ID Theft Affidavit.
• List every instance of credit fraud that you know.
• Get a copy of the police report. Make sure you only send copies to your creditors—keep the original in your files.
• Write down the investigating officer’s phone number and contact information, along with the dates, times and notes about any conversations which you had with them.
4. Keep good records of every detail.
Send all letters where you report identity theft by certified mail, return receipt requested. Keep copies of every one of them. Keep a dated log of all phone calls: time and date, your contact and what they told you.
5. File a complaint with the FTC.
The FTC’s got a useful Identity Theft Affidavit for you to fill out. Use this to help convince the police to fill out a report. Send it to creditors for clearing your account. It will also expedite expunging false information on your credit reports
To report identity theft, call their toll-free hotline at 877.IDTHEFT (438-4338) or visit www.consumer.gov/idtheft your information enter the “Consumer Sentinel,†which is monitored by civil and criminal law enforcement agencies worldwide.
