Identity Theft: It is an awful feeling when you find out that
your name has been tarnished by a thief. If that has
happened to you, don't panic, it may take a little
effort, but things can be corrected and set right.
I know, I speak from experience. I was surprised that
my bank denied me for a simple
loan. I thought I had great credit, but when
I
investigated the situation I found that there was a
bounced check for a pizza I bought in a state
I hadn't lived in for over six years. It turns out
that someone had
copied the information from an old checking account of
mine and had forged my name to buy pizza.
Maybe you never opened
that account, but someone else did...someone who used your name and
personal information to commit fraud. When an imposter co-opts your
name, your Social Security number (SSN), your credit card number, or
some other piece of your personal information for their use—in
short, when someone appropriates your personal information without
your knowledge-it's a crime, pure and simple...
The biggest problem? You may not know your identity's been stolen
until you notice that something's amiss: you may get bills for a
credit card account you never opened, your credit report may include
debts you never knew you had, a billing cycle may pass without your
receiving a statement, or you may see charges on your bills that you
didn't sign for, didn't authorize, and don't know anything about.
First Things First
If someone has stolen your identity, the Federal Trade Commission
recommends that you take three actions immediately.
First, contact the fraud departments of each of the three
major credit bureaus. Tell them to flag your file with a fraud alert
including a statement that creditors should get your permission
before opening any new accounts in your name.
At the same time, ask the credit bureaus for copies of your credit
reports. Credit bureaus must give you a free copy of your report if
it is inaccurate because of fraud. Review your reports carefully to
make sure no additional fraudulent accounts have been opened in your
name or unauthorized changes made to your existing accounts. In a
few months, order new copies of your reports to verify your
corrections and changes, and to make sure no new fraudulent activity
has occurred.
Second, contact the creditors for any accounts that have been
tampered with or opened fraudulently. Ask to speak with someone in
the security or fraud department, and follow up in writing.
Following up with a letter is one of the procedures spelled out in
the Fair Credit Billing Act for resolving errors on credit billing
statements, including charges that you have not made.
Third, file a report with your local police or the police in
the community where the identity theft took place. Keep a copy in
case your creditors need proof of the crime.
Take Control
Although identity thieves can wreak havoc on your personal finances,
there are some things you can do to take control of the situation.
Here's how to handle some of the most common forms of identity
theft.
If an identity thief has stolen your mail for access to new credit
cards, bank and credit card statements, pre-approved credit offers
and tax information or falsified change-of-address forms, (s)he has
committed a crime. Report it to your local postal inspector.
If you discover that an identity thief has changed the billing
address on an existing credit card account, close the account. When
you open a new account, ask that a password be used before any
inquiries or changes can be made on the account. Avoid using easily
available information like your mother's maiden name, your birth
date, the last four digits of your SSN or your phone number, or a
series of consecutive numbers. Avoid the same information and
numbers when you create a Personal Identification Number (PIN).
If you have reason to believe that an identity thief has accessed
your bank accounts, checking account or ATM card, close the accounts
immediately. When you open new accounts, insist on password-only
access. If your checks have been stolen or misused, stop payment. If
your ATM card has been lost, stolen or otherwise compromised, cancel
the card and get another with a new PIN.
If an identity thief has established new phone or wireless service
in your name and is making unauthorized calls that appear to come
from-and are billed to-your cellular phone, or is using your calling
card and PIN, contact your service provider immediately to cancel
the account and calling card. Get new accounts and new PINs.
If it appears that someone is using your SSN when applying for a
job, get in touch with the Social Security Administration (SSA) to
verify the accuracy of your reported earnings and that your name is
reported correctly. Call (800) 772-1213 to check your Social
Security Statement.
In addition, the SSA may issue you a new SSN at your request if,
after trying to resolve the problems brought on by identity theft,
you continue to experience problems. Consider this option carefully.
A new SSN may not resolve your identity theft problems, and may
actually create new problems. For example, a new SSN does not
necessarily ensure a new credit record because credit bureaus may
combine the credit records from your old SSN with those from your
new SSN. Even when the old credit information is not associated with
your new SSN, the absence of any credit history under your new SSN
may make it more difficult for you to get credit. And finally,
there's no guarantee that a new SSN wouldn't also be misused by an
identity thief.
If you suspect that your name or SSN is being used by an identity
thief to get a driver's license, report it to your Department of
Motor Vehicles. Also, if your state uses your SSN as your driver's
license number, ask to substitute another number.
Stay Alert
Taking the steps outlined here should, in most cases, resolve your
identity theft problems, but identity theft or related credit
problems may reoccur. Stay alert to new instances of identity theft.
Notify the company or creditor that's involved immediately. Follow
up in writing.
Finally, order a copy of your credit report from the three credit
bureaus every year to check on their accuracy and whether they
include only those debts and loans you've incurred. This could be
very important if you're considering a major purchase, such as a
house or a car. A credit bureau may charge you up to $8.50 for a copy of your report.