Indicators of Identity Theft

Unless you have been living under a rock for the past twenty years, you are probably at least somewhat familiar with the crime known as “identity theft.” If you are extremely unfortunate you may have even been a victim of this very unpleasant crime at some point in your life.

Identity theft happens when a criminal steals your personal identifying information (name, address, date of birth, social security number, etc.) and then uses that information without your permission. Thieves often use this type of illegally obtained information to open new accounts such as credit cards, loans, utility accounts, and others, essentially committing fraud in your name.

There are numerous shady methods imposters will employ to swipe your personal information. Of course, you should be smart and take every necessary precaution available to protect yourself from identity thieves. And as part of protecting yourself from these criminals, you’ll want to continually check your credit reports for evidence of the crime.

Errors on Your Credit Reports

The easiest and most effective way to discover if you have become a victim of identity theft is to develop the habit of checking your credit reports for errors. You can claim a free copy of your credit reports once every 12 months at AnnualCreditReport.com. Of course, checking your credit reports just once a year is not enough to adequately protect yourself. Instead it is a good idea to check your 3 credit reports monthly or, at the very least, on a quarterly basis. If you discover accounts on your credit reports that you do not recognize it could be an indication that your identity may have been ripped off by an imposter.

Unauthorized Credit Inquiries

When you check your credit reports do not forget to look at the “inquiries” section of those reports as well. Whenever your credit report is pulled the credit bureaus will post a record of that pull directly on your credit report/s. This is formally known as a credit inquiry. If you discover an unauthorized inquiry on your credit reports from a lender whom you do not recognize it could potentially be a sign that someone is attempting to open fraudulent accounts in your name.

Statements and Phone Calls About Accounts You Do Not Recognize

Another red flag that could indicate your identity has been stolen is when you receive bills and statements in the mail that you do not recognize. In addition to bills you might even receive collection calls as well. If you receive suspicious bills or calls for accounts you did not open you should give the lender or collection agency a call right away to report the potential fraud.

Addressing the Problem

Learning that your identity has been stolen is never a pleasant experience. However, if you find yourself in this unfortunate predicament there are some steps that you can take to attempt to repair the damage.

1. File an Identity Theft Report

You can visit IdentityTheft.gov to fill out your personalized identity theft affidavit with the Federal Trade Commission. You can also obtain a police report by visiting your local law enforcement agency. Remember, of course, that lying on these types of reports is a crime so you should never claim to be a victim of identity theft if said theft has not genuinely occurred.

2. Submit Your Identity Theft Report

Once you have completed your identity theft report your next step should be to submit a copy of the report to both the credit reporting agencies (Equifax, TransUnion, and Experian) and to the creditors who are reporting the fraudulent accounts. Submitting the report to the aforementioned parties informs them that identity theft has taken place and that you wish to exercise your rights under the Fair Credit Reporting Act (FCRA) to have those fraudulent accounts removed from your credit reports.

The bureaus will place fraud alerts on your credit reports, which will require that any lender that pulls your reports going forward will have to confirm with you that you did, in fact, apply for credit. That’s a pain in the rear, but it does work. It will slow down applications for credit especially if you’re not available when the lender calls you. But, in the grand scheme of things it’s better to delay legitimate applications by a day or two to avoid the mess of having to deal with unauthorized accounts.