You've heard about identity theft. You've probably even thought you were doing everything right to protect yourself. Still, it takes on a whole new meaning when you're the victim of this horrible crime. Immediately, you'll feel violated in a profoundly personal way. Not only has someone stolen your money, but they've also robbed you of your name, reputation, self-confidence, and overall sense of self. While you might want to take a step back to let it all sink in, you don't have time for that. You must fight to retake your name and restore your sense of self and financial independence. These are the steps you need to take if you're a victim of identity theft.
Immediate Actions to Take
If you discover you're a victim of identity theft, you must act quickly. Some actions are more urgent than others. Taking prompt measures can limit the damage criminals do in your name, saving you time and money and helping you restore your reputation faster.
Reporting to Authorities and Financial Institutions
The first thing you need to do is to let the right people know. It isn't a problem you can ignore. The longer you allow it to continue, the worse it will become – and the more difficult it will become to climb out of. The first step is to inform the police in your community.
You'll need to fill out a report, and they will investigate. That will help you discover the full extent of the crimes against you and provide you with evidence to provide to financial institutions. Your next step will be to inform various financial institutions of the identity theft committed against you. It includes your bank and credit card companies and those where the identity thieves created accounts and accrued debt in your name. Your local police will also work with you to help you determine your next steps, usually filing with the Federal Trade Commission, so they can also begin an investigation.
Initiating a Fraud Alert and Credit Freeze
These can protect you from further damage by those who stole your identity. It won't undo the damage, but it can prevent the criminals from committing crimes against you and your good name. To initiate a credit freeze, you only need to contact the three primary credit reporting agencies and ask them to freeze your credit. The credit freeze will remain until you contact them to unfreeze your credit.
What does it do for you?
It prevents new credit from being acquired in your name until you remove the credit freeze.
A fraud alert works similarly. In this case, however, you only need to contact one of the three credit bureaus rather than all three. Notify them that you suspect fraud and ask them to place a fraud alert on your credit report. While people can open new accounts in your name with a fraud alert, it is much more difficult for them to do so.
Navigating the Recovery Process
The harsh truth about identity theft is that recovery is a lengthy process. You often need to undo what the criminals did in your name and restore your reputation. It's neither fair nor enjoyable, but it's essential for recovery. Following these steps can help.
Filing a Report with the FTC
Your local police will recommend this action and help you get started. You want to do this early in the recovery process as it will help clear the path for you in some regards, especially with financial agencies that are reluctant to cooperate.
Correcting Your Credit Report
That is another extended step in the recovery process. Ensure your credit report only displays credit applications and accounts you've initiated. It will require you to contact each credit bureau about any inaccuracies in the report.
Closing Fraudulent Accounts
You will also need to act quickly to ensure that all the fraudulent accounts are closed and that the bad actor can no longer use those accounts to accrue more debt in your name.
Dealing with Debt Collectors
Once you receive your first collection letter from a debt collector, you must contact them in writing within 30 days to notify them that you are the victim of identity theft and that this is not your debt. You may need to provide them with copies of the police report or documentation from the FTC investigation. Notify them that they need to stop reporting the debt to credit bureaus. Ask for their cooperation in identifying the debt and how it happened (this is information they must provide if you request the information).
Resources for Victims
In addition to your local police and the FTC (Federal Trade Commission), you can also turn to your state's attorney general and IdentityTheft.gov for more resources to help as you recover from identity theft.
Takeaways
Identity theft is a crime against you that makes you feel alone. The sad truth is that you are not alone. Millions of people find themselves facing the same intimidating recovery process each year. These resources will help as you pick up the pieces after identity theft happens to you.