What's the First Thing an ID Theft Victim Should Do? The Answer Will Surprise You
Becoming a victim of identity theft is never easy, but try not to panic. Just because one credit or bank account has been compromised, it doesn't mean that they all have been. Identity theft doesn't mean that one account has been compromised, it means something far more dangerous and scary. So how can you tell the difference and, more importantly, how can you go about fixing the damage that's been done?
First Things First: Were You Actually a Victim?
"People confuse getting your credit card information stolen with identity theft," says Ken Chaplin, a senior vice president with TransUnion. He notes that there are a number of ways that people can get your credit card that have nothing to do with stealing your identity.
In fact, fraudulent charges on your credit card are much more common and innocuous. Chaplin notes that "you've probably gotten calls or text messages from your bank asking if your card is being used legitimately, or you might see charges on your statements that you don't recognize." Neither of these are necessarily indicative of identity theft. So what is?
Identity theft means just that: someone has gotten enough of your personal information that he can start opening new accounts in your name. That might mean new credit cards, new health accounts or even a new mortgage. "You wouldn't know until the creditor comes to collect," Chaplin says. "Identity theft is very serious and far reaching."
Then Report The Theft to the Proper Authorities
If you've become a victim of identity theft, before you even call your credit card company and file a report with the local police and the Federal Trade Commission. The FTC lets you file a report right online. Steve Weisman, proprietor of Scamicide.com and a professor at Bentley University in Boston, is very up front about why you should do this. "Don't expect the criminals to be caught," he says. Instead, you're doing this to protect yourself and create a record of the identity theft. This will come in useful when you take the next step.
Only then is it time to report the theft to the credit bureaus, as well as your credit card companies and bank. Weisman says that a fraud alert usually isn't the right choice. "They're generally ignored anyway," he says. "Instead, you want a credit freeze." That makes it so that no one can access your credit report without your PIN. "The credit freeze is the best preventative measure, but it's something that you should absolutely do if you're a victim," he adds.
Look Into Your Current Credit Report
After you've reported the identity theft to your credit card companies, bank, the credit reporting bureaus and the proper authorities, you want to pull your credit report. The best thing you can do is pull the credit report online so that you can look at it immediately. Any unfamiliar accounts are probably due to the identity theft.
"You can inform all of those companies if you've been a victim," says Weisman. Now your reports to the FTC and the local police are going to come in handy. "If there's a debt collector that's harassing you, you need to let them know that you're a victim," he adds.
Weisman notes that things get really messy if you've had your medical information stolen as well. "The thief's information is going to get mingled with yours in your medical records," he says. This means that if you need a blood transfusion, for example, you might not get the right kind of blood. Because of how HIPPA laws are written, it can be difficult to impossible to get the incorrect information off of your medical records. Weisman says that you need to include a note saying that you've become a victim and saying what your real information is.
Another highly problematic area of identity theft is criminal identity theft. This is where someone uses your information to commit crimes. "If you're a victim of this kind of theft, you need to notify your local DA and prove that you are who you really are," he says. You'll then get a letter that you need to carry with you -- otherwise a simple traffic stop can turn into a major problem.
Identity theft is a serious and damaging crime. You can protect yourself, but if you do become a victim, how you deal with it can make all the difference in the world. Approach the matter aggressively and in the right order. That's going to make a huge difference when it comes to getting your life -- and your credit -- back on track.