Identity Theft: The First Steps to Take

Signs your identity may have been misused

Identity theft is not always obvious. Common signs include:

• Charges or withdrawals you do not recognize.
• Bills, statements or collection calls for accounts you never opened.
• Being denied credit, or offered unusually poor terms, because of something in your credit report you do not recognize.
• Bills or statements that suddenly stop arriving, which can mean someone changed your address.
• A notice from the IRS that more than one tax return was filed in your name, or that you had income from an employer you do not work for.
• Medical bills or insurance statements for care you did not receive.

If you see one of these, do not wait to see whether it happens again. The steps below follow the order that consumer protection agencies generally recommend, and most of them can be started the same day.

Step 1: Contact the companies involved

Call the fraud department of each business where you know fraud occurred, such as your bank, card issuer, phone carrier or a store where an account was opened in your name. Use the phone number on your card, statement or the company’s official website. Explain that your identity was stolen and ask them to close or freeze the affected accounts so that nothing new can be charged without your permission. Change the passwords, PINs and security questions on your existing accounts, and ask each company to confirm in writing what it has done.

Step 2: Place a fraud alert, and consider a freeze

A fraud alert tells businesses that check your credit to take extra steps to verify your identity before opening a new account. It is free, and you only need to contact one of the three nationwide credit bureaus: Equifax, Experian or TransUnion. The bureau you contact is required to tell the other two. An initial fraud alert lasts one year and can be renewed. If you have an Identity Theft Report, you can ask for an extended fraud alert, which lasts seven years.

A credit freeze goes further. It restricts access to your credit report, which prevents most new creditors from opening accounts in your name. Freezes are free under federal law, but you must contact each bureau separately. You can lift a freeze temporarily when you need to apply for credit, and your existing creditors can still see your file.

Step 3: Report it to the FTC

Report the identity theft to the Federal Trade Commission at IdentityTheft.gov. Your report to the FTC can serve as an Identity Theft Report, which carries specific rights under federal law. It can help you block fraudulent information from your credit reports, stop a company from collecting a debt that resulted from the theft, and place an extended fraud alert.

Some businesses also ask for a police report. If you know who the thief is, if a creditor or agency requires one, or if the loss is significant, file a report with your local police department and bring a copy of your FTC report, a government-issued photo ID and proof of your address.

Step 4: Review your credit reports and dispute errors

Get your free credit reports from all three bureaus through AnnualCreditReport.com and read them carefully. Look for accounts you did not open, inquiries from companies you never contacted, addresses where you never lived, and debts that are not yours. Write to each bureau that shows fraudulent information, explain what is wrong, include a copy of your Identity Theft Report and proof of your identity, and ask for the information to be blocked or removed. Send a similar letter to each business that reported a fraudulent account. Keep checking your reports over the following months, since some misuse surfaces later.

Special situations to check

Tax-related identity theft

If the IRS tells you a return was already filed with your Social Security number, respond to the notice as directed. You may need to complete IRS Form 14039, the Identity Theft Affidavit. The IRS also offers an Identity Protection PIN, a six-digit number that helps prevent anyone else from filing a return using your Social Security number.

Medical identity theft

Review the explanation of benefits statements from your health insurer. If you see care you did not receive, contact the insurer’s fraud department and ask your medical providers for copies of your records so that incorrect information can be corrected.

Children’s information

Children generally should not have a credit report. If one exists, it may be a sign of misuse. Parents and guardians can ask each bureau to check, and can request a free credit freeze for a child under 16.

Keep a recovery log

Recovering from identity theft can take weeks or months and involves many calls and letters. Keep a notebook or document with the date of every contact, the name of the person you spoke to, what they said they would do and any reference numbers. Save copies of letters, emails and reports in one folder. When a company asks for documentation, or a problem resurfaces, this record will save you time and stress.

Helpful official resources

These official sites are the best places to confirm current rules and to report problems. IntelliReply is not affiliated with any of them.

• IdentityTheft.govidentitytheft.gov
• AnnualCreditReport.comannualcreditreport.com
• Federal Trade Commission: Consumer Adviceconsumer.ftc.gov
• Consumer Financial Protection Bureauconsumerfinance.gov

This guide is general educational information, not legal or financial advice. Rules can change and may differ by state, so check the official sources above for the latest details. Spotted something that needs correcting? Let us know.