Identity theft: What to do if it happens to you?
What the heck are these bills for a credit card I never opened? Who is calling me saying I owe money I never spent? Why did I just get denied for a loan application I never filled out?
If any of these things are happening to you, you may be the victim of identity theft.
The United States government defines identity theft as: “Identity theft happens when someone uses your personal or financial information without your permission. It can damage your credit status and cost you time and money.”
If you have been a victim of identity theft, you are not alone. The Federal Trade Commission reported in 2023, data from the FTC alone show more than 330,000 reports of business impersonation scams and nearly 160,000 reports of government impersonation scams.
Identity theft can happen to anyone, and its consequences can be devastating. Whether it’s unauthorized credit card charges or someone impersonating you to obtain loans or commit crimes, the fallout can be significant.
So, what should you do if you become a victim of identity theft? Here are the essential steps to take to mitigate the damage and reclaim your identity.
How To Recognize Identity Theft
Recognizing identity theft is crucial for taking prompt action. Signs include unexplained withdrawals from your bank account, unfamiliar accounts on your credit report, or suddenly being denied credit for no apparent reason. If you notice any of these red flags, it may be identity theft.
What Is Phishing?
Phishing is a common tactic used by identity thieves to trick individuals into revealing sensitive information such as passwords, credit card numbers, or social security numbers.
These scams often involve emails or messages that appear to be from legitimate sources, such as banks or government agencies. However, they’re designed to deceive you into providing your personal information.
IRS Identity Theft and Scams
The IRS is a frequent target for identity thieves, particularly during tax season. Scammers may impersonate IRS agents, claiming you owe taxes or threatening legal action if you don’t comply.
It’s essential to be wary of unsolicited communication from the IRS and to verify the legitimacy of any requests for personal information.
Identity Theft: What To Do
If you suspect you’re a victim of identity theft, acting quickly is paramount. Start by contacting the Federal Trade Commission (FTC) to report the theft and create an Identity Theft Report. Next, notify your financial institutions and credit reporting agencies to place fraud alerts on your accounts and monitor for suspicious activity.
Moving Forward After Identity Theft
Recovering from identity theft can be a lengthy and challenging process, but it’s crucial to remain vigilant and proactive.
Keep detailed records of all communications related to the theft, including dates, times, and the names of individuals you speak with. Work with law enforcement, creditors, and other relevant parties to resolve any fraudulent activity and restore your creditworthiness.
How To Prevent Identity Theft in the Future
Preventing identity theft requires diligence and awareness.
Safeguard your personal information by shredding sensitive documents, using strong passwords, and being cautious about sharing personal information online. Regularly monitor your financial accounts and credit reports for signs of unauthorized activity, and promptly report any suspicious transactions or inquiries.
If someone calls you claiming to be from your bank or credit card company, tell them you will call them back. Hang up, call the number on your credit card or bank statement, not a number they give you.
TL;DR
- If you suspect you’re a victim, act quickly by reporting the theft to the FTC.
- Notify financial institutions and credit reporting agencies.
- Keep detailed records of all communications.
- Remain vigilant.
