Let’s talk about identity theft and what to do if you or someone you know falls victim to identity theft.
First, What is Identity Theft?
Identity Theft occurs when an unauthorized party:
1. Accesses and uses your personal information to set up new accounts without your knowledge.
2. Uses your existing accounts to purchase items unknown to you.
3. Misuse of your personal information to commit fraud.
Many of these problems are found on your credit report as:
· Unfamiliar accounts on your credit report
· Unfamiliar personal information. Personal identification information can include addresses, Social Security number, phone numbers, date of birth, and bank account numbers. PII = Personal Identification Information.
· Unfamiliar inquiries on your credit report
· Unknown credit card charges
· Unknown tax filings
· Notification that your data was compromised
Step 1:
Get your three credit reports from http://www.annualcreditreport.com for free. You can now ask for a new copy every week.
The three credit bureaus:
· Experian www.experian.com
· Transunion www.transunion.com
· Equifax www.equifax.com
Make sure you get reports from each bureau because there may be discrepancies between reports.
Step 2:
Create a profile on www.IdentityTheft.gov. This site is part of the Federal Trade Commission.
The information you provide on www.IdentityTheft.gov will determine if you are a victim of identity theft by creating a recovery plan.
Step 3.
If www.IdentityTheft.gov recommends it, you should complete an Identity Theft Affidavit.
The Identity Theft Affidavit will serve as a legal document that is sent to your credit reporting agencies and creditors.
Step 4:
Determine if you need to file a police report. Get a police report if you know the identity thief. If an identity thief used your identity in a traffic stop, or one of your creditors or debt collectors requires it.
Step 5:
Create a fraud alert on your credit reports. Contact one agency and they update the other two agencies. You can use www.transunion.com/fraud-alerts.
Step 6:
You should initiate a credit freeze on your credit reports. Credit freezes must be placed with each credit bureau. A credit freeze is a security freeze placed on your credit file. This prevents anyone, including you, from opening a new credit account in your name without your unique (to each credit reporting agency) PIN. A credit freeze also prevents potential creditors from accessing your credit report. When you need to apply for new credit, it will be necessary for you to lift the freeze. Please plan for this and realize there should be no charge for establishing or lifting a credit freeze.
1. Equifax
1-888-298-0045
2. Experian
1-888-397-3742
3. TransUnion
1-800-916-8800
Step 7:
Blocking information is the ability to hide fraudulent accounts and activities from your credit reports. The requirements to block include your proof of identity, your copy of the completed FTC Identity Theft Affidavit, and a list of your fraudulent accounts.
The credit bureaus have four business days to block fraudulent data after receiving the blocking request. The credit bureaus will alert your creditors that you are a victim of identity theft.
After blocking is complete, rerun your credit reports at http://www.annualcreditreport.com to make sure fraudulent activity is missing. If the fraudulent activity is not missing, you may have to contact creditors individually. The last resort is escalating to the Consumer Financial Protection Bureau’s consumer complaint database.
You have rights under the federal Fair Credit Reporting Act (FCRA). Please check out at https://www.ftc.gov/business-guidance/privacy-security/credit-reporting
If you have received one of countless “NOTICE OF DATA BREACH” Check out this site: https://www.identitytheft.gov/Info-Lost-or-Stolen
Here is a great communication resource for resolving identity theft. https://www.identitytheft.gov/Sample-Letters
If you have any questions, feel free to reach out to me at https://www.walletwise.org/plans to schedule a 30 minute conversation. Feel free to check out https://www.walletwise.org/general-5 on additional credit report information.
And see my video discussing Credit Reports and Credit Scores in general.
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