Identity Theft Is on the Rise - But There Is Hope

Identity theft has been on the rise ever since the internet became popular.

There are several types of identity theft—financial, medical, social media, and unemployment. Financial identity theft is when someone uses your personal information to apply for credit, uses your existing bank or credit card accounts, or file taxes pretending they are you.

More data is available online than ever before, making it much easier to locate and steal identities now than in the past. While there are times when our identifying information is stolen due to no fault of our own, like when a retail store unintentionally loses data from its customers, there are still steps we can take to protect ourselves from identity theft.

How to Avoid Identity Theft

1.      Watch out for “phishing” emails. This is when you receive an email stating your account needs attention or the password needs to be changed. Always verify that the email address is from the purported entity, and don’t click on any hyperlinks within the email but go to the site directly to perform any actions.

2.      Beware of phone scams. Many times you will receive fake phone calls from supposed financial institutions asking for your logon information to “verify your identity.” Never give this information over the phone. Hang up and call your financial institution immediately.

3.      Review your bank and credit card statements. If you notice any charges that you don’t recognize, immediately question them with your financial institution.

Recognizing that Your Identity has been Stolen

There are multiple clues that your identity has been stolen: 

• You receive bills for items you never purchased.
• You receive denials for loan applications or credit cards you never applied for. 
• You get collection phone calls for accounts you never opened. 
• Your bank or credit card statements show purchases you never made.

6 Steps to Take if Identity Theft Happens to You:

1.      Contact the companies where your identity was stolen. Speak to the fraud department, explain the identity theft, and ask them to close or freeze the accounts. Then change the login information for each account.

2.      Place a fraud alert with one of the credit bureaus. You only need to place a fraud alert with one bureau, as they share this information. A fraud alert means your identity must be verified before any new accounts can be opened. 

Credit bureau fraud alert hotlines:

ü  Equifax: 1.888.766.0008

ü  Experian: 1.888.397.3742

ü  TransUnion: 1.800.680.7289

3. Get your free credit report. You can receive this at annualcreditreport.com or by calling (877) 322-8228.

4.      File a fraud report with the Federal Trade Commission (FTC).

Federal Trade Commission Identity Theft

ü  Phone: 1.877.438.4338 (1.877.ID.THEFT)

ü  Online: identitytheft.gov

 5.      File a report with your local police department. To complete this report, bring your FTC filing, your government identification, proof of your current address, and proof of the identity theft.

 6.      Follow the FTC recovery plan. The Federal Trade Commission will provide a detailed recovery plan for your identity theft based on the specifics of your particular situation. Additional steps could include closing new accounts opened in your name, removing bogus charges from your accounts, correcting your credit report, and reporting a misused Social Security number.

Identity theft is a terrible thing, but it can be avoided through careful review and care of your financial information. And if you are an unlucky victim, it is possible to recover from the event with some extra effort and focus.

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