Your day starts out like any other day. You have some breakfast, catch up on the news and then the phone rings. “Hello,” you say. “Is this Mr. So-and-so”? a voice asks. ”Yes, it is,” you reply. “This is Visa calling to verify you made a charge yesterday in the amount of $2,650.” “What?,” your yell. “I never made a charge for $2,650.”
And so it starts. Your identity has been stolen.
Join the gang
This will probably come as no consolation but if your identity is hi-jacked, you’re certainly not alone. According to Wiki Answers, about 17% of all Americans were victims of identity theft, which cost consumers and businesses over $50 billion. However, only 28% of those people were victims of financial identity theft. The rest had to do with medical, Social Security, drivers license and character/criminal identity theft
What to do if you you’re victimized
If you find that you have been the victim of identity theft, there are three things you must do immediately.
• Place a fraud alert
• Order your credit reports
• Create an identity theft report
How to place a fraud alert
You need to contact one of the three credit reporting bureaus (Experian, Equifax and TransUnion) and ask it to put a fraud alert on your report. It doesn’t matter which one you contact because that bureau must report this to the other two bureaus. The reason to do this is because it will make it more difficult for the thief to open more accounts in your name. This alert will last 90 days and, if necessary, you can renew it. You will have to provide proof of your identity but once you do, the credit reporting bureaus are required to verify your identity before it issues any more credit.
How to order your credit reports
Once you place a fraud alert and ask for a return receipt so that you can prove that you have reported the theft., the three credit reporting bureaus are required to give you your credit reports free. Whichever of the three you call will explain how you can get a free copy. When you order your report, ask the credit bureau to use only the last four digits of your Social Security number. In order to get all three of your reports, you’ll have to contact all three credit-reporting bureaus.
If you are able to determine which of your accounts has been tampered with, contact that business immediately and ask to speak with someone in its fraud department. Be sure to follow up this conversation with a letter. Send it by certified mail and request a return receipt. This will create a record of your conversation and prove that you had reported the theft.
When you get your credit reports
When you have your three credit reports in hand, you need to sit down and review them very carefully. You may find other items that you believe are not yours. In this event, you’ll need to contact the appropriate bureau and dispute the charge or charges. The three credit bureaus all have online forms you can use to do this. You will need to have documentation supporting your dispute. If so, the bureau is required by law to contact the company that reported the item and ask that it be verified. If the company cannot prove the item is legitimate or fails to respond within 30 days, the credit bureau must remove it from your credit report. You have the right to dispute part of the debt, the entire debt, and request the name of the original creditor.
Creating an identity theft report
Step three is to create an identity theft report. This will not only help you deal with the credit reporting bureaus, it will help you deal with businesses that permitted the identity thief to open fraudulent accounts in your name or that gave him credit.
How to create the report
There are three steps to creating an identity theft report.
• Submit a report about the theft to the Federal Trade Commission (FTC). When you complete the report, be sure and make a copy, which will be called an identity theft affidavit.
• Take the affidavit with you when file a police report.
• File a police report and get a copy of it or the report number. Together your Theft Affidavit and your police report make up your identity theft report.
Reporting the identity theft is fairly easy in that the FTC has an online form for reporting this type of fraud. There are four things you will need to do to report the fraud.
• Complete it with as many details as possible
• Review the form to make sure it is complete and then click Submit
• Be sure to write down and keep the complaint reference number that will appear once you submit your information.
• Finally, click on the words “Click here to get your Identity Theft Affidavit.” Make sure that you have printed or saved your affidavit before you leave this screen. You cannot print or save it once you leave that screen.
When you file your police report
When you go to the police to report your identity theft, you will need to make sure you take the following with you.
• A copy of your FTC Identity Theft Affidavit
• Proof of your address (rental agreement, pay stub or utilities bill)
• A government-issued ID with a photo
• Any other proof of the theft
How to avoid identity theft in the first place
If your want to know how to protect yourself from identify theft, check out this video from the IRS.