Nationwide Home Mortgage Loan Company Directory

Identity Theft: What to Do if It Happens to You?

• Take Our Identity Theft Risk Analizer Test
• Coping With Identity Theft
• Recommended Credit Monitoring Service

You apply for a credit card and get turned down because of a low credit score. Yet you know that you’ve always paid your accounts on time.

A debt collector calls to demand payment on a six-month overdue account for a credit card you have never had. You receive a credit card in the mail that you’ve never applied for.

What’s happening? You could be a victim of identity theft, where an imposter is using your personal information to obtain credit. Then when the thief does not pay the bills, the company itself or a debt collection company contacts you to demand payment. As a result of identity theft, your credit report is likely to contain negative information about your bill-payment history, and your credit score has probably been lowered considerably, making it difficult if not impossible to obtain new credit yourself.

This guide provides victims of identity theft with instructions on how to regain your financial health and who to contact for more help. You must act quickly and assertively to minimize the damage.

1. Notify credit bureaus. Immediately report the situation to the fraud units of the three credit reporting companies -- Experian (formerly TRW), Equifax, and TransUnion. When you notify one bureau that you are a victim of identity theft, it will notify the other two for you. Report that your identifying information is being used by another person to obtain credit fraudulently in your name. Ask that your file be flagged with a fraud alert and that creditors call you before extending credit. Consider using your cell phone number if you have a mobile telephone.

Under new provisions of the Fair Credit Reporting Act (FCRA, §605A) you can place an initial fraud alert for only 90 days. The credit bureaus will then mail you a notice of your rights as an identity theft victim. Once you receive it, write each of the three bureaus immediately to request two things:

In all communications with the credit bureaus, you will want to refer to the unique number assigned to your credit report and use certified, return receipt mail. Be sure to save all credit reports as part of your fraud documentation.

Once you have received your three credit reports, examine each carefully. Report fraudulent accounts and erroneous information in writing to both the credit bureaus and the credit issuers following the instructions provided with the credit reports. The FTC’s identity theft guide provides a sample letter to send to the credit bureaus requesting that fraudulent accounts be blocked.

Once you notify the credit bureaus about fraudulent accounts, the bureau is required to block that information from future reports. The bureau must also notify the credit grantor of the fraudulent account. (FCRA, §605B) Ask the credit bureaus for names and phone numbers of credit grantors with whom fraudulent accounts have been opened if this information is not included on the credit report.

In addition, instruct the credit bureaus in writing to remove inquiries that have been generated due to the fraudulent access. You may also ask the credit bureaus to notify those who have received your credit report in the last six months in order to alert them to the disputed and erroneous information (two years for employers). Under California law, when you provide your police report to the credit bureaus, they must remove the fraudulent accounts from your credit report. (California Civil Code 1785.16(k))

1a. Monitor your credit reports. If you have the means, we HIGHLY suggest that you subscribe to a credit monitoring company lihe you find here. You are allowed "free" credit reports on an annual basis, however identity theft is best fought as each issue arises. We have found that monitoring your credit report for new inquiries daily is the best way to stop identity theft. Be aware that these measures may not entirely stop new fraudulent accounts from being opened by the imposter. Credit issuers do not always pay attention to fraud alerts, even though the law now requires it. Once you have received your first free copy of your credit report and have requested that the fraud alert be extended to seven years, follow up in a few months with a request for your second free copy, which federal law enables you to receive. In addition, every consumer, whether or not a victim of identity theft, can receive one free report every twelve months from each of the three national credit bureaus.

Laws in several states give individuals additional opportunities to obtain free credit reports. For victims who live in California, you can get one free report each month for the first 12 months upon request. (California Civil Code 1785.15.3) And in seven states, whether a victim or not, you can receive a free credit report each year under state law, over and above the free report you can receive yearly under federal law. See the Federal Trade Commission’s (FTC) list of states that offer a free credit report or a report at reduced rates, even if you are not a victim of identity theft.

1b. Consider a security freeze. Ten states, including California, now enable individuals to place a "security freeze" on their credit reports. This is stronger than a fraud alert because it prevents anyone from accessing your credit file for any reason until and unless you instruct the credit bureaus to unfreeze your report. For a list of states, see www.pirg.org/consumer/credit/statelaws.htm# enact.

If your identity thief is aggressive and gives no indication of ceasing to use your identity to obtain credit, and if you live in one of the above-listed states, consider using the security freeze to curtail access to your credit file. The security freeze is free to victims of identity theft. Non-victims who wish to use the security freeze for prevention must pay a fee to activate the freeze.

The web site of the California Office of Privacy Protection provides information on how to establish a security freeze, www.privacy.ca.gov/sheets/cis10securityfreeze.htm.

2. Law enforcement. Report the crime to your local police or sheriff’s department. You might also need to report it to police department(s) where the crime occurred, if it’s somewhere other than where you live. Give them as much documented evidence as possible. Make sure the police report lists the fraud accounts. Get a copy of the report, which is called an “identity theft report” under the FCRA. Keep the phone number of your investigator handy and give it to creditors and others who require verification of your case. Credit card companies and banks may require you to show the report in order to verify the crime.

FTC regulations define an “identity theft report” to include a report made to a local, state, or federal law enforcement agency. If your local police department refuses to file a report, you can try the U.S. Postal Inspector if your situation involves the fraudulent use of the U.S. mail. You might be able to obtain a report from your state’s Department of Motor Vehicles if your case involves fraudulent use of a driver’s license in your name.

3. Federal Trade Commission. Report the crime to the Federal Trade Commission. Include your police report number. They share such information with investigators nationwide who are fighting identity theft.

The FTC's uniform fraud affidavit form is available at http://www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf

4. What to do with new credit accounts opened by the imposter. If your credit report shows that the imposter has opened new accounts in your name, contact those creditors immediately by phone and in writing. Recent amendments to the FCRA (§623(6)(B)) allow you to prevent businesses from reporting fraudulent accounts to credit bureaus.

Creditors will likely ask you to fill out fraud affidavits. The FTC provides a uniform affidavit form that most creditors accept (www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf). No law requires affidavits to be notarized at your own expense. You may choose to substitute witness signatures for notarization if creditors require verification of your signature.

Ask the credit grantors in writing to furnish you and your investigating law enforcement agency copies of the documentation, such as the fraudulent application and transaction records. Both federal and California law give you the right to obtain these documents. (FCRA § 609(e), and California Penal Code 530.8). The California Office of Privacy Protection provides instructions and sample letters on how to obtain documentation from credit grantors, www.privacy.ca.gov/cover/identitytheft_info.htm.

A victim of identity theft must provide a copy of the FTC affidavit or another affidavit acceptable to the business, plus government-issued identification, and a copy of an “identity theft report” (police report) in order to obtain the documents created by the imposter. The business must provide copies of these records to the victim within 30 days of the victim’s request at no charge. The law also allows the victim to authorize a law enforcement investigator to get access to these records.

When you have resolved the fraudulent account with the creditor, ask for a letter stating that the company has closed the disputed account and has discharged the debts. Keep this letter in your files. You may need it if the account reappears on your credit report.

You must also notify the credit bureaus about the fraudulent accounts. Instructions are provided in section 1 above.

5. Handling problems with your existing credit or debit accounts. If your existing credit or debit accounts have been used fraudulently, report it in writing immediately to the credit card company.

Get replacement cards with new account numbers. In addition to phoning the credit card company regarding the fraud, you will need to follow up in writing and will likely be asked to provide a fraud affidavit or a dispute form. Send the letter to the address given for “billing inquiries,” not the address for sending payments. Carefully monitor your mail and bills for evidence of new fraudulent activity. Report it immediately. Add passwords to all accounts. These should not be your mother’s maiden name or any word that is easily guessed.

6. Debt collectors. If debt collectors attempt to require you to pay the unpaid bills on fraudulent accounts, ask for the name of the collection company, the name of the person contacting you, phone number, and address. Tell the collector that you are a victim of fraud and are not responsible for the account. Ask the collector for the name and contact information for the referring credit issuer, the amount of the debt, account number, and dates of the charges. Ask if they need you to complete their fraud affidavit form or if you can use the Federal Trade Commission affidavit. Follow up in writing to the debt collector explaining your situation. Ask that they confirm in writing that you do not owe the debt and that the account has been closed.

Under new provisions in the FCRA, a debt collector must notify the creditor that the debt may be a result of identity theft (§615(g)). The FCRA also prohibits the sale or transfer of a debt caused by identity theft. (§615(f)) (For additional information on dealing with debt collectors, read our Fact Sheet 27, which has a section for victims of identity theft at www.privacyrights.org/fs/fs27-debtcoll.htm#8. See also Fact Sheet No. 116 of the Identity Theft Resource Center, www.idtheftcenter.org under "Victim Resources.")

7. Check and banking fraud. If you have had checks stolen or bank accounts set up fraudulently, ask your bank to report it to ChexSystems, a consumer reporting agency that compiles reports on checking accounts. Also, place a security alert on your file (see web address below).

Your bank branch should be able to provide you with a fraud affidavit. Put stop payments on any outstanding checks that you are unsure of. Cancel your checking account and other affected accounts and obtain new account numbers. Give the bank a password for your account (not mother's maiden name, Social Security number, date of birth, sequential numbers, or any other easily guessed words).

If you subsequently have trouble opening new bank accounts, contact ChexSystems to correct your file:

If your own checks are rejected at stores where you shop, contact the check verification company that the merchant uses. The major ones are listed here.

Under a new federal law, you now have a right to obtain any reports that these companies compile about you. For ChexSystems and any of the check verification companies listed here that you have had to contact as a result of your identity theft situation, we recommend that you request a copy of your file once a year. Make sure your file has been corrected. If not, you will find it difficult to open up new bank accounts and/or write checks where you shop. Visit the web sites listed above to learn how to order your free annual reports. And read the PRC’s guide on these “specialty reports.” www.privacyrights.org/fs/fs6b-SpecReports.htm

8. ATM cards. If your ATM or debit card has been stolen or compromised, report it immediately. Contact your bank branch and fill out a fraud affidavit. Get a new card, account number, and password. Do not use your old password. Monitor your account statements. You may be liable if fraud is not reported quickly. Start with a phone call and immediately follow up in writing. Be sure to read the debit card contract for information about liability. Some cards are better protected in cases of fraud than others.

ATM and debit card transactions are subject to the Electronic Fund Transfer Act. (15 USC §1693) Even if you are a victim of identity theft, your liability for charges can increase the longer the crime goes unreported. For more on EFTA, see the Federal Reserve Board’s guide, www.federalreserve.gov/pubs/consumerhdbk/electronic.htm.

9.  Fraud involving U.S. Mail. Notify the local Postal Inspector if you suspect an identity thief has filed a change of your address with the post office. Also contact the Postal Inspector if the thief has used the mail to commit fraud. Find out where fraudulent credit cards were sent. Notify the local Postmaster for that address to forward all mail in your name to your own address. You may also need to talk with the mail carrier.

Call the U.S. Postal Service to find the nearest Postal Inspector at (800) 275-8777 or visit its web site at www.usps.com/postalinspectors. The online complaint form is available at www.usps.com/postalinspectors/fraud/MailFraudComplaint.htm. Or you can mail your complaint to: U.S. Postal Service, Criminal Investigations Service Center, Attn: Mail Fraud, 222 S. Riverside Plaza Suite 1250, Chicago, IL 60606-6100.

10. Secret Service. The U.S. Secret Service has jurisdiction over financial fraud. But, based on U.S. Attorney guidelines, it usually does not investigate individual cases unless the dollar amount is high or you are one of many victims of a fraud ring. To interest the Secret Service in your case, you may want to ask the fraud department of the credit card companies and/or banks, as well as the police investigator, to notify the Secret Service agent they work with. www.treas.gov/usss/financial_crimes.shtml

11. Social Security number (SSN) misuse. The Social Security Administration (SSA) does not in most cases provide assistance to identity theft victims. But be sure to contact the SSA Inspector General to report Social Security benefit fraud, employment fraud, or welfare fraud.

As a last resort, you might try to change your number, although we don’t recommend it except for very serious cases. The SSA will only change the number if you fit their fraud victim criteria.

If your SSN card has been stolen or lost, order a replacement. Complete the SSA's application available at www.socialsecurity.gov/online/ss-5.html, or by calling the SSA at (800) 772-1213, or by visiting your local SSA office. You will need to provide the required documentation such as birth certificate and government ID at your local SSA office to get a replacement card.

12. Passports. Whether you have a passport or not, write the passport office to alert them to anyone ordering a passport fraudulently.

13. Phone service. Identity thieves often establish fraudulent wireless phone accounts, with monthly bills going unpaid. The imposter might also have opened local and long distance phone accounts. If you have learned that the imposter has obtained phone account(s) in your name, contact the phone company for information on how to report the situation. The steps that you take to clear your name with both the phone company and credit bureaus are much the same as with credit card accounts described above in steps one and three. In California, SBC-Pacific Bell’s fraud hotline is (877) 202-4558.

If your calling card has been stolen or there are fraudulent charges, cancel it and open a new account. For your own phone accounts, add a password that must be used any time your local, cell, and long distance accounts are changed.

14. Student loans. If an identity thief has obtained a student loan in your name, report it in writing to the school that opened the loan. Request that the account be closed. Also report it to the U.S. Dept. of Education:

15. Driver’s license number misuse. You may need to change your driver's license number if someone is using yours as ID on bad checks or for other types of fraud. Call the state office of the Department of Motor Vehicles (DMV) to see if another license was issued in your name. Put a fraud alert on your license if your state’s DMV provides a fraud alert process. Go to your local DMV to request a new number. Fill out the DMV's complaint form to begin the investigation process. Send supporting documents with the completed form to the nearest DMV investigation office.

16. Victim statements. If the imposter is apprehended by law enforcement and stands trial and/or is sentenced, write a victim impact letter to the judge handling the case. Contact the victim-witness assistance program in your area for further information on how to make your voice heard in the legal proceedings.

17. False civil and criminal judgments. Sometimes victims of identity theft are wrongfully accused of crimes committed by the imposter. If you are wrongfully arrested or prosecuted for criminal charges, contact the police department and the court in the jurisdiction of the arrest. Also contact the state Department of Justice and the FBI. Ask how to clear your name. If a civil judgment is entered in your name for your imposter’s actions, contact the court where the judgment was entered and report that you are a victim of identity theft. For more on what to do if you become the victim of criminal identity theft, see PRC Fact Sheet 17g, www.privacyrights.org/fs/fs17g-CrimIdTheft.htm.

18. Legal help. You may want to consult an attorney to determine legal action to take against creditors, credit bureaus, and/or debt collectors if they are not cooperative in removing fraudulent entries from your credit report or if negligence is a factor. Call the local Bar Association (www.abanet.org/premartindale.html), a Legal Aid office in your area (for low-income households), or the National Association of Consumer Advocates (www.naca.net) to find an attorney who specializes in consumer law, the Fair Credit Reporting Act, and the Fair Credit Billing Act. Another sources for attorneys who handle identity theft cases is: www.myfaircredit.com/?inc=about.

If you are a senior citizen or take care of a dependent adult, be sure to contact an elder law service or the nearest Aging and Independent Services program. Many district attorneys have an elder abuse unit with expertise in financial crimes against seniors.

19. Other forms of identity theft. If a deceased relative’s information is being used to perpetrate identity theft, or if you personally know the identity thief, additional information about how to address these situations is available in other fact sheets. See the Identity Theft Resource Center web site at www.idtheftcenter.org

20. Keep good records. In dealing with the authorities and financial companies, keep a log of all conversations, including dates, names, and phone numbers. Note time spent and expenses incurred in case you are able to seek restitution in a later judgment or conviction against the thief. You may be able to obtain tax deductions for theft-related expenses (26 U.S.C. §165(e) -- consult your accountant). Confirm conversations in writing. Send correspondence by certified mail, return receipt requested. Keep copies of all letters and documents. Tips for organizing your case, and other useful information for victims, can be found in the Federal Trade Commission’s guide, Take Charge, at www.consumer.gov/idtheft. Also read the Identity Theft Resource Center’s guide on record-keeping, www.idtheftcenter.org

21. Dealing with emotional stress. Psychological counseling may help you deal with the stress and anxiety commonly experienced by victims. Know that you are not alone. Contact the Identity Theft Resource Center for information on how to network with other victims and deal with the impact of this crime. www.idtheftcenter.org

22. Making change. Write to your state and federal legislators. Demand stronger privacy protection and prevention efforts by creditors and credit bureaus.

23. Don’t give in. Do not pay any bill or portion of a bill that is a result of fraud. Do not cover any checks that were written or cashed fraudulently. Do not file for bankruptcy. Your credit rating should not be permanently affected. No legal action should be taken against you. If any merchant, financial company or collection agency suggests otherwise, restate your willingness to cooperate, but don't allow yourself to be coerced into paying fraudulent bills. Report such attempts to government regulators immediately.

Other Useful Tips

If you are in the military, place an active duty alert on your credit report
When you are away from your usual duty station, you can place an active duty alert on your three credit reports as an extra protection against identity theft. The alert remains on your credit reports for 12 months. Contact the fraud departments for the three credit bureaus. Those phone numbers are provided in section 1 above.

Order your free credit report
Whether or not you are a victim of identity theft, take advantage of your free annual credit reports, now a requirement of federal law.

Resources

Federal Trade Commission (FTC)

Privacy Rights Clearinghouse (PRC), 3100 - 5th Ave., Suite B, San Diego, CA 92103. Phone: (619) 298-3396. Contact us online: www.privacyrights.org Web: www.privacyrights.org. Read more about credit reporting and identity theft:

Identity Theft Resource Center (ITRC), P.O. Box 26833, San Diego, CA 92196. The ITRC offers many guides for victims and in-depth assistance by phone: (858) 693-7935. Web: www.idtheftcenter.org. E-mail: itrc@idtheftcenter.org

U.S. Dept. Of Justice. The DOJ prosecutes federal identity theft cases. Visit its web site for identity theft information: www.usdoj.gov/criminal

FBI Internet Fraud Complaint Center. Report cases involving online fraud and phishing. Web: www.ifccfbi.gov

This guide was originally written as a joint project of the Privacy Rights Clearinghouse (www.privacyrights.org) and CALPIRG (www.calpirg.org). Both are nonprofit consumer advocacy organizations. Reprinted with permission by Lendfast.com