If you’ve experienced identity theft, try not to panic. Instead, take the right steps to remedy the problem and prevent further damage. You may even be able to recover any lost funds.
Learn how to report identity theft to the Federal Trade Commission (FTC) and the police as well as how to protect your accounts from this crime. We’ll also provide some expert tips on how to prevent identity theft so you can avoid losing money and facing stressful situations in the future.
Key Takeaways
- Identity thieves gain access to your personal financial information to steal your money.
- You should report identity theft to the FTC and the police as soon as possible.
- If someone opens a new account with your Social Security number, contact one of the credit reporting agencies immediately to avoid damage to your credit score.
- If you’ve been the victim of identity, protect your personal information, change your passwords, and freeze your credit report.
What Is Identity Theft?
Identity theft happens when someone uses your personal information for financial fraud. There are several ways identity theft can be damaging. A fraudster may:
- Use your name and credit card number to make a purchase or get a cash advance
- Use your Social Security number to open a credit card account or take out a loan
- Use your Social Security number to apply for social service programs or tax refunds
- Use your Medicare number to access health services
- Rent an apartment in your name
According to the latest data from the Bureau of Justice Statistics, identity theft victims lost an average of $880 as a direct result of identity theft incidents in 2021. But when thieves used the victim’s personal information to open a new account, the average losses were much greater, at nearly $3,500. About one in 10 of all victims also experienced severe distress due to the violation.
How to Check If Your Identity Has Been Stolen
If you experience any of the following, you should suspect identity theft.
- Bills or account statements that include items you didn’t purchase
- A call from a debt collector regarding an account that isn’t yours
- Hard inquiries or accounts on your credit report that you didn’t open
- A loan application denial letter
- Missing mail that never makes it to your address
- Alerts from your credit card company about suspicious activity
- Warnings your information may have been leaked in a data breach
By the time you notice these signs of identity theft, the thief may have already stolen from you. That’s why John Wilson, Senior Fellow of Threat Research at Fortra, recommends checking your credit report monthly or signing up for a credit monitoring service. “Most banks offer this for free,” he says.
Note
How to Report Identity Theft to the FTC
To file a report with the FTC, head to IdentityTheft.gov and click “Get started.” Answer the questions in detail, and then the FTC will generate an Identity Theft Report, which you’ll need to provide proof of the incident to law enforcement. You’ll also get a personalized recovery plan. The FTC provides resources that may save you time, such as sample letters and forms to send to credit bureaus. If you’d like to report identity theft by phone, call 1-877-438-4338.
How to Report Identity Theft to the Police
Go to your local police station or file a police report online. Make sure you:
- Attach your FTC Identity Theft Complaint
- Attach this cover letter to explain why a police report is important
- Provide other documents that show evidence of identity theft, such as your credit report or a debt collection letter
- Ask the police officer to include the FTC complaint in their police report, so you can file disputes with credit bureaus and lenders
Other Steps to Take If Your Identity Was Stolen
Add a Fraud Alert or Credit Freeze to Credit Reports
You can place a fraud alert on your credit report to prevent creditors from issuing new credit without first verifying your identity. You only need to contact one of the three major credit bureaus, since they’re legally required to notify the other two. The credit bureaus are:
Adding a fraud alert is free and lasts for a year. You can also submit a request for an extended fraud alert, which lasts seven years, by mail. You’ll need to include your police report and documents proving your identity and address.
You may also decide to freeze your credit, which precludes credit reporting agencies from releasing your credit report unless you provide approval. The law requires credit bureaus to freeze your credit within one business day. It’s free and won’t impact your credit score. But you’ll need to contact all three agencies and follow their individual rules.
“Keep your unlock code in a safe place,” Wilson says. “If you are applying for a loan, ask which bureau they use and unfreeze your credit at that bureau just long enough to obtain your loan.”
Contact Your Banks and Credit Card Companies
Immediately alert your bank or credit card issuer about any existing fraudulent charges and let them know your identity has been stolen. You can also freeze your credit cards until you can get replacement cards or turn on fraud alerts to be notified of any suspicious account activity. Some credit card companies allow you to do this online or via a mobile app.
Wilson recommends avoiding debit cards to make purchases and instead relying on your credit card. “If you must use your debit card, use it through a payment service such as Apple Pay or Google Pay,” Wilson says. “These services generate a unique code for each transaction, so even if your details are stolen at the point of purchase, the thief cannot use the information to make additional purchases.”
Update Account Passwords and Security Settings
It’s possible a fraudster has accessed one of your accounts to get your personal information, so go ahead and change your passwords for all online accounts that contain personal information, starting with your email account, online banking website, and loan platforms. If you have Gmail, Google can help you identify weak passwords and those that may have been exposed in a data breach.
“Wherever possible, use multifactor authentication for logging in to sensitive accounts and keep a record of all passwords in a password manager app,” Wilson says. “Use strong passwords and never the same one twice.”
How to Prevent Identity Theft
Once you resolve your identity theft incident, you’ll want to take steps to prevent it from happening again.
- Don’t share any personal financial information. Only use encrypted websites for banking and online shopping when using a public Wi-Fi network. Shred important documents before tossing them.
- Don’t answer calls from unknown numbers, and don’t respond to or click links in unsolicited texts and emails.
- Don’t keep your Social Security card in your wallet.
- Regularly collect your mail or place a hold with the U.S. Postal Service if you’ll be away.
For extra protection, Wilson suggests:
- Sign up for credit monitoring: A credit monitoring service lets you know when a new account is opened in your name. That way, you can investigate immediately. For even more protection that comes at a cost, consider an identity theft protection service.
- Set up a “My Social Security” account: Create a free “My Social Security” account so you can keep an eye out for fraud using your SSN.
- Set up an IRS Identity Protection Pin: You can request this six-digit code from the IRS. You’ll use the code to verify your identity when filing your taxes, so no one can get fraudulent tax refunds using your Social Security number or taxpayer identification number.
How Should You Report the Theft of Your Identity?
What to Do If Someone Steals Your Identity?
If you’re a victim of identity theft, consider freezing your credit report and locking your credit cards. Report the incident to the FTC and the police, change your passwords, and dispute fraudulent charges as soon as possible.
How Do I Check to See If Someone Is Using My Social Security Number?
Sign up for a credit monitoring service and check your credit report at least monthly, looking for accounts that aren’t yours. To check for government benefits fraud, create a My Social Security account.
The Bottom Line
Identity theft can have a significant negative impact on your financial life. Taking the right steps to report identity theft can minimize the damage and help you prevent further financial harm. The key to reporting identity theft correctly is to report any indication of identity theft to the FTC and law enforcement as soon as possible.
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