Dealing with Identity Theft

March 10, 2009

by Ryan Smith

Identity theft is one of the easiest crimes to commit for many thieves. In most cases, they never even have to come face to face with you. The risk is low for them, making your risk of becoming a victim of identity theft very high.

The U.S. Department of Justice defines identity theft as a crime in which “someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain.” Basically, someone uses your information or credit to purchase things that they won’t have to pay for – you will.

In 2008, an estimated 9.9 million U.S. consumers were victims of identity theft, according to Javelin Strategy and Research. In order to clear up the mess left behind by the thief, the victim spent an estimated 25 hours trying to resolve the fraudulent charges and lost an additional $500 in the process.

Victims of identity theft don’t only have to deal with the damage done to their credit and pocketbooks. The emotional toll of becoming a victim of the crime can be devastating in many cases. One of the most overpowering feelings is one of simply not knowing what to do. Here is where you should start.

Contact the Credit Reporting Agencies

As soon as you realize that your identity has been stolen, you should contact the 3 major credit reporting agencies. You don’t have to contact each agency separately, the law requires the agency you call to contact the other two with your report. A flag will be placed on your account requiring any business that tries to view your credit report to verify your identity first. You will then receive 2 free reports from the 3 agencies over the next 12 months. You can reach the credit reporting agencies at:

Equifax 800-525-6285 Experian 800-397-3742 TransUnion 800-680-7289

Call Your Creditors

If you have had your credit cards stolen or any unauthorized charges on your accounts, you should contact the credit card companies. Ask to talk with someone in the fraud department. Make sure that you write down when you call and the name of each representative that you speak with. The law gives you 60 days from the date you normally receive your bill to dispute any charges on your account. If you are within this time frame, your losses for unauthorized charges are capped at $50. Hopefully, your credit card issuer will work with you so that you aren’t liable for anything. Contacting your issuers as soon as possible will allow you to have new accounts set up and stop any further unauthorized charges to your accounts.

It is a good idea to keep a record of all conversations with agency, name, phone number, date, and time called. You will want to follow up all of your phone conversations with a letter that outlines who you spoke with and a summary of the conversation. Remember, if it isn’t in writing, it may not legally exist. Always mail letters using certified mail, return receipt requested.

Notify Your Bank

Closely go through your bank accounts and look for any suspicious debits or withdrawals that cannot be accounted for. If you believe that the security of your bank account has been breached, you should immediately ask your bank to close your account and notify its check verification service. This service notifies retailers and asks them to not honor checks written on this account number. If you are unsure whether or not someone is writing bad checks in your name you can contact the Shared Check Authorization Network at 800-262-7771.

You can also contact the Chex Systems at 800-428-9623 or www.chexhelp.com and ask for a free copy of your consumer report. This service is used by many banks and can help you find out if someone has opened a new checking account in your name.

Contact the Police

As soon as you have safeguarded your finances from any further damage, you should contact your local police or sheriff’s department. Make sure that you ask to receive a copy of the police report; your creditors and banks may want to see it. In many cases, creditors who have been victimized by an identity thief using your name will ask for a police report. You may also find it beneficial to report the crime to your state law enforcement agency. Be prepared to give the police copies of all the documents that prove you are a victim of identity theft. Keep all of your original documents. The Federal Trade Commission has an ID Theft Affidavit that you can fill out and submit to law authorities. It is available for download at www.consumer.gov/idtheft.

You may have to contact the police where the crime was committed, not just your local police. Be prepared to talk with law enforcement officials in other localities and states if necessary. Your local law enforcement or creditors affected should be able to tell you if you need to contact other agencies.

Other Agencies That Can Help

There may be other agencies that you need to contact given your individual situation. When in doubt, call anyway. It is amazing how having your wallet stolen can go from losing cash, to having your credit cards charged up, to having utilities being opened in your name. Having your mail stolen can lead to someone wiring money from your checking account or opening new credit cards in your name. The best way to prevent further losses is to act first.

You can contact these agencies for more help:

-Social Security Administrator’s Fraud Hotline at 800-269-0271 -U.S. Postal Inspection Service at 888-877-7644 -Internal Revenue Service at 800-829-0433 -Federal Trade Commission at 877-IDTHEFT

It will take time to repair the damage caused by identity theft. It won’t be cleared up overnight; you must be both patient and persistent. But by taking action quickly, you will prevent further damage to your credit, your finances, and your good name.

About the Author
Ryan Smith: Credit and personal finance blogger for www.spendonlife.com. Focusing on credit reports, credit scores and identity theft.

Posted in Identity Theft