Identity Theft III: The Aftermath
So you finally got a copy of your credit report and your worst fears are confirmed: someone has used your name and personal information to open new credit accounts, take out loans and has left you with the tab. The phone is off the hook with creditors and collection agencies calling you about the overdue payments you owe them for an unauthorized shopping spree that took place on the other side of the country. You’re being denied for anything and everything, you can’t get a loan, insurance, or even an apartment to stay in. Someone has utterly ruined your identity. What do you do in the aftermath of such a disgusting abuse of your privacy and financial reputation? First, take a deep breath and know that you are not alone. Once you’ve done this, immediately take action.
Place Fraud Alerts Immediately!
Placing a fraud alert with any of the major bureaus will alert the others (they are required by law to do so in the United States) and will help prevent a fraudster from opening any additional accounts in your name. Be sure to obtain documentation from each of the major credit bureaus that the alert has been successfully placed.
In the US, placing a fraud alert will entitle you to free copies of your credit report from each of the three main Credit Bureaus. This will enable you to assess the full extent of the damage inflicted to your credit by giving you a complete list of all the accounts opened in your name, including those opened by a fraudster, as well as listing unauthorized inquiries, showing you where the fraudster has attempted to use your identity to obtain credit.
Close Accounts that have been Tampered with or Opened Fraudulently
Contact the fraud department with each company by phone and follow up, if necessary, with copies of supporting documents. As always, keep copies of all correspondence with everyone throughout the cleanup process. When you open new accounts with these companies, be sure to use new passwords, PINs, etc. With each company, request information on the procedure for disputing fraudulent transactions with that company. When filing these disputes, include as much documentation as possible, including copies of police reports and so forth. Once you have resolved the disputes with the company, request documentation from the company that states the full extent of the changes to your account, including transactions which were deemed fraudulent and reversed, fraudulent accounts that were closed, and so forth.
Correct your Credit Report
Once you have documentation for all successfully resolved disputes, forward them along with a dispute letter to each of the major credit bureaus in your area. While most companies will contact the credit bureaus to correct fraudulent information present on your report, it is always good practice to follow up on these efforts and clean up anything that they might have missed in the repair process.
If you get stuck at any step throughout this process, don’t despair; the key is to be persistent and keep extremely good records of all correspondence that you have with each entity involved. There are often resources available from your bank or local police department to help you combat identity theft. If you become stumped, call the FTC’s Identity Theft Hotline at 1-877-ID-THEFT.
Hopefully this article series has provided you with useful insight on how identity theft works, how to detect it, and how to deal with the effects of it. Remember, you can never be too careful with your personal information, guard it with your best efforts and hopefully you will never have to endure the nightmare of having it stolen from you.
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