Identity theft is a type of crime where a fraudster uses someone else’s personal identifiable information (PII) in a fraudulent or deceptive way, usually for financial gain.
If you’ve become a victim of identity theft, you’re not alone.
The Federal Trade Commission (FTC) estimates that 9 million Americans have their identities stolen each year. What’s more, each year 7% of all adults in the US have their identities used fraudulently.
Identity theft can be very complicated to deal with. But fortunately there are lots of resources available to help you set things straight, as well as to help minimize the risk of it happening again. In this guide you will find out what to do if your identity is stolen and what an appropriate response is to identity theft.
This guide includes:
There are different types of identity theft and which authority you need to report it to will depend on the specifics of the theft that occurred. We’ll go over the specific steps you need to take if you are a victim of a credit, taxpayer or medical identity theft. However, there are also some steps that all identity thefts have in common and those are the ones we’ll get started with.
The Federal Trade Commission (FTC) is a government agency that is responsible for protecting consumers. Anyone who has been a victim of identity theft should file a report to the FTC. You can do this online at IdentityTheft.gov or by calling 1-877-438-4338.
We recommend filling out the form online because that way, you’ll receive an identity theft report. The report can be very important in case you need to prove to certain companies or organizations that your identity has been stolen. Just select the option that describes your situation best and follow the steps given until you’ve completed the report and created a profile.
Once you’ve created a profile on identity theft.gov, you’ll be provided with login details which will allow you to access useful resources. These include pre-written letter templates that you can send to creditors and a helpful recovery plan to guide you through the necessary steps to clear your name.
Reporting identity theft to your local law enforcement is a good idea even though it’s not always required. If the person who stole your identity is someone you know, or if you’re aware that crimes have been committed with your stolen identity, reporting the theft to the police is essential and should be done as soon as possible.
What’s more, filling a police report is also useful as some creditors require you to provide a police report in order to prove that your identity has been stolen.
If you have an identity theft protection plan, or if identity theft is covered under another insurance policy that you hold, you should contact your provider and submit a claim.
Identity theft insurance usually covers most costs related to identity theft, such as money spent on reclaiming your financial identity and repairing credit reports. The costs you can claim from your provider range from phone bills to legal fees associated with the crime.
This step is optional but especially useful if you’ve been a victim of identity theft that isn’t as common as credit, medical or taxpayer identity theft.
The Identity Theft Resource Center (ITRC) is a non-profit organization established to minimize risk and mitigate the impact of identity theft. They provide a free victim assistance number 1-888-400-5530 where you can get valuable information about the steps you need to take.
Credit identity theft is when a fraudster applies for a new credit line using your personal identifiable information. Unfortunately, this is one of the most common types of identity theft. This is what you need to do if you’ve become a victim of this type of fraud.
First you should contact credit and financial institutions where you suspect fraudulent accounts might have been created and immediately inform them about the situation. Also, inform the companies where fraudulent transactions occurred.
A credit freeze blocks access to your credit reports and helps to prevent the thief from opening new accounts under your name. Applying a credit freeze is free and only takes around 15 minutes.
You’ll need to request this with each of the big three credit rating bureaus:
A fraud alert is another way of preventing fraudsters from applying for credit under your name. If you place an alert, companies are required to take additional steps to confirm your identity before approving the credit application.
To place the alert you need an identity theft report from the FTC or a police report (which is detailed above) to prove that your identity has been stolen. An extended fraud alert lasts up to 7 years and it gives you a free copy of your credit report from each bureau twice a year.
Note that you only need to contact one of the three credit bureaus to place the fraud alert. The bureau you contact is responsible for informing the other bureaus about the alert.
There are several different fraud alert options so when you fill out the form online, make sure you request the extended 7-year fraud alert, rather than the other options.
Taxpayer identity theft happens when fraudsters get hold of your Social Security Number to file a tax return and steal your tax refund or tax credit. These are the steps you need to take if you’ve become a victim of a taxpayer identity theft:
File a report to the Internal Revenue Service (IRS) by contacting the IRS Identity Protection Specialized Unit by calling 800-908-4490. You should also fill out the IRS Identity Theft Affidavit, Form 14039 PDF as soon as possible.
Once you’ve completed the form, print it out and attach it to your paper tax return. Mail both the form and your return to the IRS, following the instructions on the form.
As the fraudster has your SSN, you should consider taking some extra steps to prevent additional harm. Freezing your credit and placing a fraud alert (as described above) are smart measures to prevent the fraudster from applying for credit under your name and causing further damage.
Medical identity theft happens when someone uses your identity to use health care services. It can be especially dangerous because the inaccurate information on your medical records may impact your doctors decision-making.
If the fraud is Medicare related, you should report it to the U.S. Department of Health and Human Services’ Office of Inspector General, by calling 800-447-8477 or filling out this form online.
Contact each hospital, clinic, pharmacy, laboratory, and health insurance company where your information might have been fraudulently used. Ask for copies of all your medical records and review the information to see if there are any errors or visits that you didn’t make.
Report any errors in these records to your health care provider by explaining the situation and providing copies of the incorrect information. Send the letter as certified mail so you’ll know exactly who has received it.
Your health care provider is responsible for responding to you within 30 days. They are also responsible for notifying other health care providers about this.
Now that your personal information has been compromised and the process of repairing your reputation has started, it’s essential that you take appropriate measures to prevent your information getting in the wrong hands again. As you already know by now, preventing an identity theft from happening is much less work than actually dealing with one. These are the steps you should follow to protect your personal information in the future.
You should now have a better idea on what to do if your identity is stolen and what is a valid response when identity theft occurs.
Dealing with identity theft can be extremely difficult and stressful. The good thing is that there are several ways and lots of useful resources for you to get everything sorted.
What’s most important is that once you’ve finished the process of reporting and resolving the issues, it’s essential for you to invest in prevention. Making sure your personally identifiable information (PII) doesn’t get compromised again by being aware of phishing, removing your information from the web, reviewing your bank statements and credit reports regularly can save you from a lot of headaches in the future.
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