Identity theft can be financially ruinous if not handled quickly. Looking at your credit reports annually is one way to monitor for potential identity theft. If your report contains account information you don’t know, or if your score surprises you, you may need to investigate the possibility of identity theft.
Your credit score is the equivalent of your financial identity when it comes to buying a home, securing credit, or making other important financial decisions. Credit scores have the ability to affect interest rates, premium payments, and the ability to obtain loans. Having your score altered by someone else’s illegal use of your information can prevent you from living your life.
Be on the lookout for these warning signs as indicators of identity theft.
1. Unauthorized charges to your accounts. While annoying, it’s incredibly important to reconcile all of your financial statements each month. Many banks and credit card companies monitor suspicious activity, but you must be the first line of defense for your own finances. Any suspicious activity or unauthorized purchases should be reported to your financial institution immediately.
2. Your credit report shows information that doesn’t add up. Whether it’s a debt or an account number you don’t recognize, your credit report contains valuable information about who you are. Sometimes identity thieves open accounts with your information that you wouldn’t otherwise know about. Review your credit reports at least once a year and pay attention to all the information that is presented about you.
3. Debt collection agencies have contacted you. If you get a call about an account you don’t know about, you may be a victim of identity theft.
4. You receive false medical bills. Identity thieves will use your insurance information to obtain medical treatment. Unpaid medical bills will definitely affect your overall credit score, and you may be responsible for paying for treatments you never received.
5. Unexpected approvals are in your mailbox. If you see a notice that your mail is being forwarded, or credit card and loan information you’ve never requested, chances are you’re under attack by an identity thief. Calls from the IRS about unreported wages you’re not familiar with are also red flags.
What to do if you suspect identity theft.
1. Alert Experian, TransUnion or Equifax about the fraud. They will put an alert on your account and inform the other agencies. This step will make it more difficult for an identity thief to continue using your information for financial activities.
2. Get copies of your credit reports. Please review all information and contact any business that has inaccurate account information. They will be able to stop activity on the accounts. Always follow up with a written letter to the company.
3. Create a fraud report. The report must include detailed information about the fraud.
4. File a report with the police. Take your created fraud report, which will be known as an “identity theft affidavit.” The police station will be able to help you file the complaint.
5. File a report with the FTC (Federal Trade Commission). You will need your identity theft affidavit and a copy of the police report to file an FTC report.
Taking these steps as soon as you become aware of fraudulent activity can help protect your account and allow you to take further steps to protect your information. After your report has been filed, you can use a copy of it to help reporting bureaus remove fraudulent information from your file, prevent collection agencies from contacting you for payment, and learn more about the activities of the report. identity thief.
Identity Theft Recovery
You may need to take several more steps to make sure your data is protected and any inaccuracies are resolved after you discover the identity theft. From writing dispute letters to canceling and changing credit card accounts, you’ll need to take every precaution to make sure the identity thief no longer has access to your information.
Alert all banks and financial institutions with which you have accounts. You never know what information an identity thief has accessed. Track all information about your communications with companies. Keep copies of every letter you send and file every response you receive. It’s always a good idea to follow up any verbal communication with written letters.
You may need to take legal action to repair your identity, and having records of all correspondence and steps you have taken to repair your financial records will be admissible as evidence. Contact a credit repair agency for help with documentation and contacting credit bureaus and other companies to repair your information.
Prevent identity theft
The best way to handle identity theft is to prevent it from the start. Keeping an eye on all your accounts will keep you aware of any suspicious activity. Here are some other tips to prevent identity theft.
- Always delete personal information on the Internet. Logins and passwords should not be left open on any public computer.
- Change passwords frequently. Use strong passwords that do not contain personal or easily identifiable information about you. Change them frequently in financial accounts.
- Use a credit card in public and online. Credit cards can be relatively easily repaired if they are compromised by fraudulent activity. Other payment methods, such as debit cards, are not guaranteed in the same way as credit card payments.
- Use anti-spyware and spam-blocking software. Security features on your computer are good investments to prevent a hacker from getting your information through malware or spam.
- Destroy personal documents. Historically, the trash has been a popular place for identity thieves to collect sensitive information. Any documents that contain personally identifiable information, such as social security numbers, account numbers, and routing numbers, should always be shredded.
- Maintain and verify your mailing address. Make sure your mailing address is regularly updated with financial institutions. If you move, contact the postal service and other companies to make sure your address is changed. Confidential information sent to the wrong address can make an identity thief’s actions a crime of convenience.
Identity theft isn’t just a hassle to fix. It is harmful and can lead to unnecessary legal action and difficulty in recovering your legitimate credit score and financial information.
