IdentityTheft
Identity theft has earned the attention of both consumers and the media in recent years. It is such an important topic that I will address it in 3 parts. First, I will explain identity theft and its outcome. Next, I will discuss prevention. Finally, I will provide instructions for identity theft victims to report identity theft and prevent further damage.
What is Identity Theft and how does it affect me?
Identity theft is defined as the fraudulent use of a person’s personal information. For example, a social security number, mother’s maiden name, date of birth, or account number can be used by a thief to open fraudulent new credit card accounts, charge existing credit card accounts, write checks, open bank accounts, or obtain new loans. Thieves obtain this information through your mail, trash, and internet transactions, as well as by stealing wallets, purses or stealing personal identification information from workplace records.
The outcome of identity theft is a destroyed credit score. Victims can spend countless hours, even years, resolving fraudulent issues and damaged accounts. A bad credit report can affect your ability to qualify for a mortgage or lower interest rate, so protecting yourself from identity theft is of utmost importance. For more information, call Marc.
How do I protect myself from being a victim of identity theft?
According to the Federal Trade Commission, nearly 10 million Americans fall victim to identity theft each year. To avoid being part of this statistic, take the following precautions to ensure that your personal information is safe:
· Be aware of billing cycles and statements. Thieves may try to divert your mail to obtain account information, so you will need to watch carefully for the arrival of personal mail. Once you receive your statement, review it carefully to make sure all transactions were authorized.
· Safeguard your mail. Collect your mail promptly. Don’t alert thieves by leaving bill payments in your mailbox with the flag up. Deposit your bill payments directly into a post office collection box.
· Shred old credit card receipts, ATM receipts, old account statements, and unused credit card offers.
· Do not give personal information, such as social security numbers or account numbers, over the telephone, Internet, or through the mail, unless you initiated the communication and know with whom you are dealing.
· Monitor your credit. You can order a free copy of your credit report once a year to ensure that it is accurate. Some people prefer to monitor their credit more often. In this case, you can hire a credit monitoring company to alert you of changes to your credit as they occur.
Taking every precaution to protect your identity is worth the effort. In the event of a new purchase or refinance, damaged credit can prevent you from qualifying for a loan or lower interest rate.
I believe I might be a victim of identity theft. What should I do?
If you think that someone has stolen your identity, you should take the following five steps:
1. Request a free copy of your credit report. If you have reason to believe that your credit report is inaccurate due to fraud, you can submit a request in writing for credit bureaus to provide a free copy of your report. Once you receive the report, review it to make sure that unauthorized changes have not been made to existing accounts or that additional fraudulent accounts have not been opened in your name. Also, remember to check the “Inquiries” section of your report and request that the creditor remove any fraudulent inquiries.
2. Call the fraud department of each credit bureau to report the identity theft. Ask that a fraud alert be placed in your file to put creditors on notice that you have been the victim of fraud. Additionally, ask that a victim’s statement be placed in your file to request that creditors not open additional accounts without contacting you first. The telephone numbers for the fraud departments of the three major credit bureaus are:
· Trans Union: 1-800-680-7289
· Equifax: 1-800-5256285
· Experian: 1-888-397-3742
3. Contact all banks and creditors where you have an account. Advise them that you have been a victim of identity theft. Ask them to restrict access to your account, change your account password, or close the account, in the event that there is evidence that your account has been compromised by criminal activity. When appropriate, have new credit, debit, or ATM cards reissued as well as new checks.
4. File a report with your local police department.
5. Report your identity theft to the Federal Trade Commission. The information you provide will be placed in a secure database to be shared with local, state, and federal law enforcement agencies. 1-877-ID-THEFT.
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