Identity theft is a serious crime that can have long term consequences on your finances and credit score. Unfortunately, most people don’t realize their personal information was stolen until weeks or months later. So, whether you fell prey to a scam or were a victim of a data breach, it’s important you act as soon as possible.
Use these six steps to get your finances back under your control and prevent further damage to your credit score.
Step #1: Contact Your Financial Institutions
To prevent thieves from continuing to access your accounts, you’ll want to notify all your financial institutions. Make a list of all your accounts and credit cards, including those that might not yet be affected.
Once you contact your financial institutions, they will typically close your account and open a new one. You will also receive new ATM, debit, and credit cards to prevent further fraud.
Step #2: Report the Crime to the FTC
The Federal Trade Commission (FTC) has a special website for identity theft victims. In addition to providing a wealth of resources, you’ll receive a personal recovery plan and access to letter templates to use when communicating with your financial institutions.
Step #3: File a Police Report
Many identity theft victims skip this crucial step. It’s essential to file a police report for two reasons:
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Identity theft is a crime, and a record needs to be created for future proceedings.
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An official police report can help you navigate any issues with financial institutions, credit card companies, lenders, or collectors when disputing fraudulent charges.
Step #4: Freeze Your Credit Reports
A security freeze prevents new lenders from accessing your credit reports. Without access to your information, they cannot issue new credit cards or loans. If you want to apply for credit, such as a car loan or credit card, you must unfreeze your credit report. When you place the security freeze, you will receive a login from each credit bureau. Simply log into your account to unfreeze your credit report
Alternatively, a fraud alert requires lenders to take extra measures to ensure the identity of the individual(s) applying for credit in your name.
You’ll need to place a freeze or alert on each of your credit reports from the major credit bureaus.
Step #5: Notify Other Parties
Sometimes fraud affects more than strictly your financial accounts. For example, if scammers gain access to your Social Security number, they could file fake tax returns or worse. If you believe your Social Security number is compromised, it’s wise to contact the Social Security Administration. They will help to determine if your number was stolen and detail steps to issue a new card if necessary.
Step #6: Monitor Your Accounts & Credit Reports
It’s always wise to check your accounts and transactions regularly, especially after being an identity theft victim. While many websites and apps allow you to check your credit score for free, it’s also important to review your entire credit report periodically.
You can obtain a free copy of your credit report from each major credit bureau annually at www.AnnualCreditReport.com. You can either request all three reports at once, or you can space them out throughout the year. For example, request your Equifax report in March, Experian in July, and TransUnion in November.
We’re Here to Help!
Identity theft is a rising crime, with fraudsters becoming more creative every year. It’s important to stay vigilant with your personal information and keep up to date with the latest scams. Knowing the steps to take if you are a victim is just as important.
If you believe you are a victim of identity theft, we’re ready to help. Please stop by any of our convenient locations or call 860•527•6663 today.