Identity Theft: The First Steps to Take

Reporting Identity Theft to the FTC

One of the very first things you should do if you suspect your identity has been stolen is to report it to the Federal Trade Commission (FTC). The FTC is a U.S. government agency that protects consumers. They offer a helpful online resource called IdentityTheft.gov.

When you report your identity theft to IdentityTheft.gov, the FTC says you can get a free personal recovery plan. This plan can guide you through the steps needed to help fix problems caused by identity theft. It can also help you create letters and forms to send to businesses and creditors. Reporting to the FTC creates an official record of the theft, which can be useful later.

Understanding Fraud Alerts

After reporting to the FTC, you might consider placing a fraud alert on your credit files. A fraud alert is a notice that tells businesses to take extra steps to check your identity before opening new accounts or granting credit in your name. This helps prevent new fraud from happening.

The FTC states that you can place a free, one-year fraud alert. To do this, you only need to contact one of the three nationwide credit bureaus. These bureaus are Equifax, Experian, and TransUnion. Once you contact one of them and place the alert, that company must tell the other two bureaus. This way, the alert is placed on your credit file at all three major bureaus. The alert will stay on your report for one year.

Understanding Credit Freezes

Another important step to protect your credit is to place a credit freeze, also known as a security freeze. A credit freeze is different from a fraud alert. While a fraud alert asks businesses to verify your identity, a credit freeze actually stops most people from being able to get into your credit report. This makes it much harder for an identity thief to open new accounts in your name.

The FTC says that a credit freeze is free to place and also free to lift. This means you do not have to pay any fees to put a freeze on your credit or to take it off. However, unlike a fraud alert, you must contact each of the three nationwide credit bureaus separately to set a credit freeze. You will need to contact Equifax, Experian, and TransUnion individually to make sure a freeze is placed on all your credit files. If you need to apply for new credit, you will need to temporarily lift or “thaw” your credit freeze with each bureau before the lender can check your credit.

Checking Your Credit Reports

Regularly checking your credit reports is a critical step in detecting and recovering from identity theft. Your credit report shows your credit history, including accounts opened in your name, loans, and payment history. It can reveal if someone has opened fraudulent accounts using your identity.

According to the FTC, the three nationwide credit bureaus – Equifax, Experian, and TransUnion – have permanently extended a program that lets you check your credit report from each of them once a week for free. The FTC also states that AnnualCreditReport.com is the only website authorized to fill orders for the free credit reports that you are entitled to by law. You should use this official website to get your free reports.

When you review your reports, look for anything that seems unfamiliar. This could include accounts you didn’t open, inquiries from creditors you don’t recognize, or incorrect personal information. If you find errors, you should dispute them with the credit bureau and the company that reported the information.

Practical Steps to Take

Dealing with identity theft can feel overwhelming, but taking organized steps can help. Here is a list of general actions you can take:

• Report to the FTC: Start by filing a report at IdentityTheft.gov to get your personal recovery plan.
• Decide on Protection: Choose whether to place a fraud alert or a credit freeze, based on your situation. Remember, a fraud alert requires contacting one bureau, while a credit freeze requires contacting all three separately.
• Check Credit Reports Regularly: Use AnnualCreditReport.com to get your free weekly credit reports from Equifax, Experian, and TransUnion. Review them carefully for any suspicious activity.
• Keep Detailed Records: Keep a careful record of everyone you contact, including the date, time, name of the person you spoke with, and what was discussed. Save copies of all letters, emails, and forms you send or receive. This paper trail can be very helpful.
• Change Passwords: If you suspect your online accounts were compromised, change passwords for all important accounts, including email, banking, social media, and shopping sites. Use strong, unique passwords.
• Monitor Financial Accounts: Regularly check your bank and credit card statements for any unauthorized transactions.

When to get legal help

Identity theft can be complex, and laws related to it can vary by state. While this information provides general guidance, it is not legal advice for your specific situation. If you are struggling to resolve issues related to identity theft, or if you believe you have suffered significant financial harm, you may want to talk to a legal professional.

You should talk to a licensed attorney in your state to understand your legal rights and options. A legal aid office in your area may also offer assistance, especially if you have limited income. Additionally, your state bar association can provide resources or help you find an attorney who specializes in consumer law or identity theft.