Dealing with Identity Theft

If you’re a victim of identity theft, it’s imperative that you take action immediately.
  
Freeze Your Account.  Call the issuer right away and request a temporary hold on your account, if this option is available. If not, close the account. This is a huge pain but it’s more than worth the inconvenience. Most companies have 24-hour toll-free numbers for these types of emergencies. Keep the number in your cell phone so you have it handy, or you can also get it through directory assistance in a pinch. As long as you promptly report the theft, your maximum liability for any fraudulent purchases under federal law is $50 per card. This is another advantage of using a credit card over a debit card—a thief can wipe out your entire checking account with a few swipes.

File an Identity Theft Report.  After you get off the phone with the card issuer, the next step is to call the police. Tell them what has happened and ask if you can come in to file a report in person. You should also specifically request to file an identity theft report, if it’s available in your area, rather than a miscellaneous police report. Make sure you get a copy of the report.

Request an Extended Fraud Alert.  Call one of the credit reporting bureaus to request an extended fraud alert, and as with a temporary fraud alert, they will automatically notify the other two agencies. An extended fraud alert lasts for seven years, and it means that in order to open new lines of credit or get a loan, you will have to do a little more of the heavy lifting—you might have to meet the lender in person, or speak to them on the phone—but it doesn’t mean that you’re going to be on credit lockdown. It just means that your credit report is under wraps.

File a Complaint With the FTC.  The Federal Trade Commission tracks identity theft nationwide so be sure to let them know if you’ve become a victim. It won’t necessarily help you recover your money, but it can help prevent future theft. You can reach them at 1-877-ID-THEFT or at ftc.gov/idtheft. Their Website also has lots of useful information on fighting back against identity theft.