Identity theft: where to start

I’ve had several identity theft victims in my office in recently. They all said they didn’t know where to start to deal with it. So here it is:

Where to Start

Identity theft is the most frequent complaint filed with the Federal Trade Commission (FTC). (The FTC was created in 1914 to protect the public against unfair commerce practices, later charged with much greater consumer protection duties.) I always encourage clients to file an identity theft complaint with the FTC. They publish an annual report of complaints, cited by everyone else as the barometer of consumer issues. The more data the FTC has, the better the statistics and allocation of resources.

FYI: One statistic I found very valuable is that young people (20 -29) are the most frequent victims of identity theft. You can be sure I will be quoting that to my 23-year-old daughter!

The FTC is my go-to source on identity theft. Preventing identity theft is, of course, preferred over being victimized. See our blog, "7 Tips to Protect Yourself from Identity Theft."

Unfortunately, we see people after they have been victimized. Here's what you can do if you are a victim:

Know the Signs

• Withdrawals from your bank account you don’t recognize.
• Bills or other mail don’t arrive.
• Checks of yours that are refused.
• Debt collection calls about debts that aren’t yours.
• Unknown accounts, inquiries or addresses on your credit report.
• Medical bills for services you didn’t have.
• IRS notice that a tax return has already been filed in your name.
• Notice that your information was compromised by a data breach.

 First Steps (The sooner you take action, the less damage to repair)

1. Get a notebook and folder to record and save all action such as phone calls, letters, etc.
2. Place a fraud alert on your credit reports. The fraud alert is good for 90 days.
3. Contact one of the three major credit bureaus as they are required to pass on the information to the others:
   1. Experian 888.397.3742
   2. TransUnion 800.680.7289
   3. Equifax 800.525.6285
4. Mark your calendar to renew the fraud alert at the end of the 90 days.
5. Consider putting a credit freeze on your credit reports. This prevents new creditors from accessing your reports instead of requiring them to verify your identity as with the fraud alert. Credit freezes may cost money, depending on your state laws. (They take time to unfreeze, so you must plan ahead if you are intending to apply for credit.)
6. Order your credit reports from each credit bureau at the numbers above. Explain you have placed a fraud alert on your reports. This entitles you to a free report. Review the reports carefully for any suspicious information. Meet with a financial counselor if the reports make your head spin.
7. Create an Identity Theft Report (aka Affidavit) through the FTC. This helps you gather the information you need to file a police report, provides important statistical information to the FTC, and is useful when dealing with companies who want you to pay for fraudulent activity.
8. File a police report with your local police department, and get a copy or report number. In Minneapolis, it can be done through our one-stop city service resource called 311 Minneapolis. Maybe your city offers a similar service.
9. Call your credit card companies to alert them to the identity theft.

The Next Step: Clean Up

Write the credit bureaus. Specifically request that the fraudulent activity be removed. Send certified mail. Provide:

• List of fraudulent information from your credit reports.
• Copies of credit reports showing the fraudulent activity.
• Copies of the affidavit and police report.
• Copy of your identification.
• Call the companies of your existing accounts if you have fraudulent charges.

Let them know you are a victim of identity theft, and ask what they need from you. Make sure to send the needed information certified mail, and log your phone calls with notes from the conversation, dates letters were mailed; and keep copies of everything sent. The FTC has very detailed instructions and sample letters. 

It is a lot of work dealing with identity theft. It can take months, even years to fully recover, depending on the extent of the damage.

LSS Financial Counseling has experienced, nonjudgmental financial counselors who can share additional information about protections against scams and provide support to individuals who have been harmed by scams. Call 888.577.2227 or get your support online.

Author Mary Ellen Kaluza is a certified financial counselor with LSS Financial Counseling