We've all heard horror stories about identity theft.  Organized groups of individuals use your name, address, social security numbers credit cards to order new credit cards, expensive cell phone packages, credit lines, computers, and almost everything imaginable.  These are often organized networks.  You wallet may be stolen in Tennessee one day and the next day charges will appear in Arizona and Florida.

If your identity is stolen, we seriously recommend:

Step 1: Protect Your Finances

Contact the fraud departments at any one of the three major credit bureaus.  Ask the bureau to place an “Initial Fraud Alert” on your file immediately and to include a “Victim’s Statement” in your file that requests all future creditors to contact you at a specific phone # before granting any new credit lines or increasing any existing credit limits. By law you are only required to contact one of the three bureaus to place an alert on your file because they are required to contact the other two bureaus for you and they will also place alerts on their files. Don’t hesitate to contact each if you so desire. The initial fraud alert will only remain on your file for 90 days and entitles you to one free credit report in the next 12 months to help monitor your file for fraud.  But don’t stop there because that is just step #1.

Credit Bureaus

Equifax : www.equifax.com; 1-800-525-6285
Experian: www.experian.com; 1-888-397-3742
TransUnion: www.tuc.com; 1-800-680-7289

Step 2: File a Police Report & ID Theft Report

You will need a police report to dispute unauthorized charges and for any insurance claims. Be persistent; your local police department may suggest that this isn't necessary, because they don't want the paperwork hassle.  Download from the Federal Trade Commission web site, http://www.ftc.gov Consumer section an “ID Theft Affidavit” which is a nationally accepted legal affidavit in which you are claiming to be an ID Theft Victim. You may use this affidavit in conjunction with your police report to block those accounts which, were opened up using your identity without your consent, from appearing on your credit file. It will help you prevent creditors from selling those accounts to collection companies and gain your release from financial responsibility because you are the “Victim” of Identity Theft. While on the Federal Trade Commission web site fill out an Online ID Theft Complaint. This will enter your information into “Secure Sentinel” an Internet database available to hundreds of civil and criminal law enforcement agencies worldwide that are trying to track and combat Identity Theft. The Federal Trade Commission web site is a great resource of information and guidance for Identity Theft Victims. You may also contact them via phone by calling 1-877-ID-THEFT.

Step 3: Close All Compromised Accounts

The list may be wider than you realize. This includes accounts with banks, credit card companies and other lenders, and phone companies, utilities, ISPs, and other service providers. Dispute all unauthorized charges and monitor your file for changes or additions you did not authorize. Be aware that closing all accounts even those not compromised my cause you difficulty in establishing new credit. Don’t close accounts unless you suspect fraud and when opening up new credit cards with the same creditors, request they report your previous history on the new card. You don’t want to lose your 5 years good payment history to a “Lost or Stolen Card” and have it replaced with an account that was just opened up yesterday. Send the creditor copies of your police report or at least case # along with the FTC Affidavit as proof of your claim as an Identity Theft Victim.

Step 4: File an “Extended Fraud Alert”

Once you have filed a police report and have filled out an FTC ID Theft Affidavit you can request an “Extended Fraud Alert” be put on your file at the Credit Bureaus. This alert remains on your file for 7 years and entitles you to 2 additional free copies of your credit file from each bureau during the next 12 months. Use these free copies to watch for any unauthorized activity on your credit files. By placing an “Extended Fraud Alert” on your file the bureaus are required to remove your name from their marketing list that they sell for prescreened credit and insurance card offers along with trigger leads.

Step 5: Keep a Log and Copy of all Papers

It is very important to keep accurate records of conversations regarding your Identity Theft case. Create a log or chart to record whom you spoke to and when your conversation and correspondence took place. This will help you solve your case more quickly and with less duplication.  Identity Theft is the fastest growing crime in the United States and with that means there are more “Victims” of Identity Theft each year. There are now organizations created by victims along with government agencies whose sole purpose is to assist Identity Theft Victims get through the process of regaining their financial health and credit identity. Below is only a partial list of some of the organizations that may be able to offer you some assistance.

Additional Resources:

More detailed 17-step plan to follow if your ID is stolen: www.privacyrights.org/identity.htm

"When bad things happen to your good name" - FTC document full of sample dispute letters and other recovery procedures: www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm

U.S. Department of Justice ID Theft kit: www.usdoj.gov/criminal/fraud/idtheft.html

Identity Theft Resource Center: www.idtheftcenter.org

ID theft laws vary by state - here's a list of state laws: www.consumer.gov/idtheft/federallaws.html#statelaws

Michigan State University School of Criminal Justice ID Theft page: www.cj.msu.edu/~outreach/identity

Identity Theft Prevention and Survival: www.identitytheft.org

Here are some additional phone numbers you can try:

• Equifax: (800) 685-1111, www.equifax.com
• Experian (formerly TRW): (888) 397-3742, www.experian.com
• TransUnion: (800) 888-4213, www.transunion.com

Each of these agencies has specific methods of reporting and dealing with identity fraud.

How to Avoid Becoming a Victim of Identity Theft:

Limit the potential for Identity Theft if your credit cards are lost or stolen:

• Keep a list of the names, account numbers and expiration dates of your credit cards in a safe place. This will aid you when alerting your credit grantors of lost or stolen cards.
• Call your credit grantors immediately after discovering your cards are missing.  Most have a 24 hour toll-free number for this purpose.  If your reopen the account be sure they have your correct address.
• Carry only identification and credit cards you need when traveling - whether locally or out of town.
• Do not carry credit cards in your checkbook.
• If your checkbook is lost or stolen, call your bank. Tell the bank the check numbers that are missing.
• If your Social Security card is missing, contact the Social Security Administration.
• If your driver's license is missing, contact the appropriate agency in your area.

 Limit the Potential for Identity Theft When Using Your Credit Cards:

• Sign your credit cards in permanent ink as soon as your receive them.
• When making a purchase, keep your card in view at all times.  Retrieve it as soon as the transaction is complete and make sure it is yours.
• Do not sign a blank charge slip.  Draw a line through the lines above the total line.
• destroy the carbons.
• Always save your receipts.  Never leave them behind.
• If requested to show a credit card as identification when cashing a check, do not let the sales clerk write down the account number.
• Avoid saying your account number if others can hear.
• Only provide your ID and credit card information over the phone to companies when you have initiated the call.  Never provide it to a solicitor.  If you are interested in a product, ask them to send you information.  Any legitimate company will be happy to comply.

Limit the Potential for Identity Theft by Reviewing Your Credit Card Statements:

• Check your statements as soon as it arrives to ensure the charges are correct.
• Keep statements in a safe place.  They contain sensitive information.
• Before discarding old statements, even closed accounts, rip them into small pieces or shred them.
• If your statement does not arrive, call your credit card issuer.
• If called by your issuer and the caller asks for your account number, do not provide it.  If the caller is the issuer, they will know your number.

Limit the Potential for Identity Theft When Using ATMs and PINs:

• Shield your number while using the ATM.
• Never leave your receipts behind.  Choose a PIN that is unique.  Use a number other than your birthday, social security number, or other obvious number.
• Never write down your PIN in your checkbook or on your cards.  It is best to memorize it.

Limit Identity Theft When Using Mail Services:

• If your mail stops, check with Post Office.  Sometimes a fraud perpetrator  submits a change of address in an attempt to get your mail.
• If you apply for a new card and it does not arrive, contact the issuer.

Keep Your Personal Information Safe:

• Check your credit report every year with all three credit bureaus. See Checking Your Report.
• Never carry your Social Security card in your purse or wallet.
• Don't write your Social Security number or Driver's License number on your checks.
• Shred any paper with sensitive of identifying information.
• Install a locking mailbox and send mail directly to the Post Office.

Click Here for the Glossary.

The information on this page and in this website is derived from sources that we believe are reliable. This information is not guaranteed.  We are not offering legal or accounting advice and suggest that you contact a lawyer and an accountant before taking any action.