Identity Theft Overview: Part II — Reclaiming Your Identity

November 2003

What you should do

The most crucial step is the one you've already taken: realizing something is wrong and getting professional guidance in setting things right. That said, the best way to minimize the damage is to act quickly and assertively. Begin by contacting key parties immediately to stop trouble in its tracks.

 

When dealing with law enforcement and financial institutions, log all conversations, including dates, names, and phone numbers. Note time spent and expenses incurred, in case you seek restitution in a later judgment or conviction against the thief. Confirm conversations in writing. Send correspondence by certified mail with a return receipt request. Keep copies of all letters and documents.

Here's more about how to handle matters with each of the specific parties you'll be working with:

Credit bureaus. Immediately call the fraud units of the three credit reporting companies — TransUnion, Experian, and Equifax — and report that someone is using your information to obtain credit fraudulently in your name. Have your file flagged with a fraud alert. Add a victim's statement to your report.

Each credit bureau will mail you a free credit report once you've called in a fraud alert. These alerts are usually placed for 90 to 180 days, but may be extended. Do so in writing, following the directions sent in the credit report you receive. You may cancel fraud alerts at any time. In all communications with the credit bureaus, you'll want to refer to the unique number assigned to your credit report; here again, use certified return receipt mail. Be sure to save all credit reports as part of your fraud documentation.

Ask the credit bureaus for names and phone numbers of credit grantors with whom fraudulent accounts have been opened, if this information isn't already included on the credit report. Ask the credit bureaus in writing to remove inquiries generated due to the fraudulent access. You may also ask the credit bureaus to notify those who have received your credit report in the last six months (two years for employers), alerting them to the disputed and erroneous information. Be aware that these measures won't necessarily prevent new fraudulent accounts from being opened by the imposter, since credit issuers are not required by law to observe fraud alerts. Request a free copy of your credit report every few months so you can monitor for fraud.

Creditors. Immediately contact all creditors with whom your name has been used fraudulently, by phone and in writing. You'll see evidence of these accounts on your credit reports. Creditors will likely ask you to fill out fraud affidavits. The Federal Trade Commission provides a uniform affidavit form that most creditors accept. No state or federal law requires affidavits to be notarized at your own expense; you may choose to substitute witness signatures for notarization if creditors require verification of your signature.

Ask the credit grantors to provide you and your investigating law enforcement agency with copies of the documentation, including the application and records showing the fraudulent transactions.

If your existing credit accounts have been used fraudulently, get replacement cards with new account numbers. Ask that old accounts be processed as "account closed at consumer's request" (better than "card lost or stolen" because it can be interpreted as you taking the blame.) Monitor your mail and bills for evidence of new fraud; report anything you find to creditor grantors immediately. Add passwords to all accounts; avoid your mother's maiden name or any easily guessed word.

Debt collectors. If debt collectors try to make you pay the unpaid bills on fraudulent credit accounts, ask for the company name, the name of the person contacting you, and the phone number and address. Tell the collector you are a victim of fraud and are not responsible for the account. Ask for the name and contact information for the referring credit issuer, the amount of the debt, the account number, and dates of the charges. Ask if they need you to complete their fraud affidavit form or if you can use the Federal Trade Commission form. Follow up in writing to the debt collector, explaining your situation. Ask that they confirm in writing that you do not owe the debt and that the account has been closed.

Law enforcement. Report the crime to your local police or sheriff's department. You may also need to report it to police departments where the crime occurred. Give them as much documented evidence as possible and get a copy of the report. Keep the phone number of your investigator handy and give it to creditors and others who require verification of your case. Credit card companies and banks may require you to show the report in order to verify the crime. It is a violation of federal law and the laws of many states to assume someone's identity for fraudulent purposes. Some police departments may be reluctant to write reports on such crimes, so be persistent.

Passport office. Whether you already have a passport or not, alert the passport office in writing to the possiblility that an impostor may apply fraudulently for a passport in your name.

Legal help. You may wish to consult an attorney to determine legal action against creditors and/or credit bureaus if they aren't cooperative in removing fraudulent entries from your credit report or if negligence is a factor. Call your local Bar Association, Better Business Bureau, or Legal Aid office to find an attorney specializing in consumer law, the Fair Credit Reporting Act, and the Fair Credit Billing Act. If you're a senior or care for a dependent adult, look for referral centers under Elder Law or Aging and Independent Services.

Were checks stolen or fraudulent bank accounts set up? Report it to the appropriate check verification companies. Put stop payments on any outstanding checks you're unsure of. Cancel your checking and savings accounts and obtain new account numbers. Give the bank a secret password for your account (not your mother's maiden name). If your own checks are rejected at stores where you shop, contact the check verification company the merchant uses.

Was your ATM or debit card stolen or compromised? Report it immediately. Get a new card, account number, and password. Do not use your old password. When creating a new one, don't use easy-to-guess numbers, like the last four digits of your SSN or your birthdate. Monitor your account statement. You may be liable if fraud is not reported quickly. Be sure to read the debit card contract for liability; some cards are better protected in cases of fraud than others.

Has a thief taken over your mailing address? Notify the local postal inspector if you suspect an identity thief has filed a change of address with the post office on your behalf or has used the mail to commit fraud. (Call the U.S. Post Office at 1-800-275-8777 to obtain your local inspector's contact information.) Find out where fraudulent credit cards were sent. Notify the local postmaster for that address to forward all mail in your name to your own address. You may also need to talk with your mail carrier.

Was your Social Security number misused? You should only contact the Social Security Administration to report fraudulent use of your SSN, such as welfare or Social Security benefit fraud. The agency does not handle cases of financial or criminal identity theft. As a last resort, you might ask to change your number, but this is not recommended except in very serious cases, and the SSA will only change the number if you fit their fraud victim criteria. You should order a copy of your Personal Earnings and Benefits Statement and check it for accuracy; the thief might be using your SSN for employment purposes.

Was your driver's license stolen? You may need to change your driver's license number if someone is using yours as ID on bad checks or for other types of fraud. Call your state's Department of Motor Vehicles (DMV) to see if another license was issued in your name, and put a fraud alert on your license. Then go to your local DMV to request a new number. Fill out the complaint form to begin the investigation process; send supporting documents along with the completed form to the nearest DMV investigation office.