My Identity Was Stolen, Now What?

9 steps you need to take after identity theft

For victims of identity theft, the path to reclaiming and restoring their identity can be long and difficult. 

If you’re wondering how in the world this could have happened – you’re not alone.

In 2017, over 16 million individuals were a victim of identity theft. 

Typically, this happens when someone wrongfully obtains and uses another person’s personal information, usually for monetary gain. 

Other times, it can be for insurance or medical theft, criminal theft, driver’s license identity, social security, child or senior identity theft, among other reasons.

Often, this personal information can come from a social security number, birthdate, residential address, bank account number, credit card, passport number, or any number of identifying documents.

In an increasingly digital world, having your information compromised can happen with something as simple as an online purchase or malware that records keystrokes. 

Other times, phishing schemes are the culprit, or stolen mail and bank documents.

Maybe it was an odd charge to your bank account or a change to your credit report that tipped you off. 

Or, you received an unsettling call from a bill collector for medical treatment you never received.

Regardless of how you’ve found yourself in the throes of identity theft, the path forward doesn’t need to be daunting. 

There are several ways to tackle identity theft as soon as it happens, as well as ways to safeguard yourself against further damage. 

1) KNOW THE DIFFERENCE 

While the term identity theft and identity fraud are used interchangeably, there are some key differences between the two.

Identity theft occurs when personal, private or financial information is stolen. Think: name, social security number, birth date, address, passwords, credit card numbers, or bank account information.

Typically, this is to make fraudulent purchases, open a line of credit or a bank account. 

This can affect healthcare claims, taxes and even criminal records for an extended period of time.

Identity fraud is similar in the sense that personal, private or financial information is stolen, but this information is typically used by the thief to impersonate someone else. 

Sometimes, this is to create a fake ID or passport, false credit card accounts, bank accounts, loan applications, withdrawals or transactions. 

This type of theft is particularly egregious because it can have a lasting impact on an individual’s credit score.

Both can happen in a variety of ways, with the most common being driver’s license identity theft. 

Mail identity theft, debit or credit card fraud, online shopping fraud, and social security number identity theft are just among the few ways criminals can take advantage. 

Here are some ways individuals can fall victim to identity theft:

TYPES OF IDENTITY THEFT

2) LOCK DOWN YOUR ACCOUNTS

For those who have identity theft protection, the first step is to contact the company immediately. 

Some companies require clients to notify them within a certain time frame in order to be covered by insurance.

For those who don’t have identity theft protection, you’ve likely been alerted via a financial institution or credit card that something is awry. 

The next step would be to dispute the charge, lock down, or close the account entirely. 

Even if you think you’ve pinpointed the problem account, it’s still a good idea to contact other accounts to check on them or give them a heads up.

This prevents those responsible from gaining further access to your accounts and alerts the bank or credit card to keep an eye out for any more mysterious charges. 

It’s important to change the login username and PINs for those accounts. 

3) CONTACT THE CREDIT BUREAUS 

Placing a free, one-year fraud alert to your accounts by contacting one of the three credit bureaus is the next, most important step.

A fraud alert is essentially a flag on your credit report, which notifies potential lenders that further steps need to be taken to verify the identity of the person requesting the line of credit. 

In other words, it will make it more difficult for someone to open new accounts in their name.

The three credit bureaus that can be contacted are Experian, TransUnion, or Equifax. 

It’s worth noting that you only need to contact one of the three credit bureaus to do this, as they are obliged by law to inform the other two if you report identity theft. 

Later, you’ll receive a letter from each credit bureau confirming they placed a fraud alert on your file.

Keep in mind that a fraud alert only warns potential lenders to confirm identification. 

This means the credit bureaus are not legally bound to take any additional steps, as it’s left to their discretion.

Another option is to freeze your credit, which will make it impossible for other lines of credit to be authorized. 

However, you’ll need to reverse this and remove the freeze yourself if you’d like to open a new line of credit, which can take up to three business days.

4) KNOW YOUR RIGHTS

After reporting identity theft to a credit bureau, they will inform you of your rights, which include getting a free credit report.

Make sure to ask them to show only the last four digits of your social security number on the report. 

Confirm with them that they will contact the other two bureaus on your behalf.

Also, record all interactions regarding your identity theft resolution, including you who spoke to, the time of the call or sent mail correspondences, and keep all email communications in a place where you can locate them later should you need to back up any verbal communication with written verification.

It’s also important to store any receipts or documents you may receive for later reference.

5) REVIEW YOUR CREDIT REPORT

Further assess the damage by requesting copies of your credit report from the three major reporting agencies, Experian, Equifax and TransUnion to see if there have been any changes to your credit score. 

Sometimes, your score can go down slightly if a new lending agency – like a utility or new line of credit – does a “hard” credit check.

Also, make notes of any accounts or transaction you don’t recognize as this can help with the theft report to the FTC and police. 

Make sure to speak to someone in the fraud department to confirm any activity on your account that was completed without your consent, then contact the lenders or banks directly.

If your social security number has been compromised, it’s not a bad idea to notify the Office of the Inspector General and similarly request a copy of a personal earnings and benefits statement.

Send your communications via certified mail so you can keep the receipts for your records. 

Again, record all communication with representatives from every lender to ensure your credit is repaired.

6) CREATE AN IDENTITY THEFT REPORT WITH THE FEDERAL TRADE COMMISSION (FTC)

The FTC offers consumers the ability to file a report online. 

Through this, you’ll have to identify what information the thief used to steal your information (such as a utility account, credit card, stolen driver’s license, etc.), how it was misused, and then provide specific details to file the identity theft report. 

The FTC will also provide a handy recovery plan that can further help mitigate damage.

7) OBTAIN AN IDENTITY THEFT AFFIDAVIT

The FTC offers an Identity Theft Affidavit that many businesses will accept when reviewing claims that your identity was used to open fraudulent accounts or make purchases.

These affidavits are meant to be included in your theft report and recovery plan when you report your identity theft to the FTC. 

This can come in handy to dispute future, fraudulent accounts or activity on existing accounts.

However, if your identity was used to file a fraudulent tax return then you’ll also need to file an IRS Identity Theft Affidavit, otherwise known as an IRS Form 14039.

8) TAKE THE IDENTITY THEFT AFFIDAVIT TO THE POLICE

Once you’ve completed the affidavit, take the document to the police to create a file for your identity theft. 

In a survey of identity theft complainants, 41% reported that they contacted law enforcement.

Of those victims, 74% notified a police department, and 61% indicated that a the police took a report. 

Make sure to get a copy of the report or the report number for your records to prove that all of the necessary steps were taken to reclaim your identity.

9) TAKE PREVENTIVE STEPS

By now, you’ll already be dealing with the fall out of identity theft. 

That might mean opening new accounts or getting a new driver’s license. 

In the worst-case scenario: this could be disputing a sudden bill from the IRS, a hospital, or fighting off criminal charges you didn’t commit.

Either way, you’ll be looking to make sure this never happens again. 

Fortunately, there’s plenty of steps you can take moving forward:

• Sign up for credit monitoring services. Identity theft protection services can offer not only monitoring but expert support, insurance and more.
• Store personal information in a safe place.
• Don’t carry your social security number and only give it out when absolutely necessary.
• Don’t give out personal or financial information unless you’ve initiated contact and know the company you’re dealing with.
• Leave extra credit cards or forms of identification at home.
• Collect the mail every day or place a hold on it when you’re away.
• Install firewalls and virus software. Make sure both are active when on public wi-fi.
• Review your credit card and bank statements each month.
• Shred documents or receipts that contain personal information such as, credit offers, account statements, bills, and expired credit cards.
• Destroy labels on prescription bottles before throwing them out.
• Wipe computers and mobile devices fully before disposing of them.
• Review credit reports at least once a year.
• Only purchase from trusted online companies.
• Use encryption software that “scrambles” the information you send over the internet.
• Don’t overshare on social media.
• Make sure passwords are private and complex.