Identity theft is a serious crime. People whose identities have been stolen can spend months or years - and their hard-earned money - cleaning up the mess thieves have made of their good name and credit record. In the meantime, victims may lose job opportunities, be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit.

If you think your identity has been stolen, here's what to do now:

UNDERSTANDING IDENTITY THEFT

What is identity theft?
Identity theft occurs when someone uses your name, address, Social Security number (SSN), bank or credit card account number, or other identifying information without your knowledge to commit fraud or other crimes.

How can someone steal my identity?
Identity thieves may use a variety of low- and high-tech methods to gain access to your personally identifying information. For example:

What are the consequences of identity theft?
Once identity thieves have your personal information, they may:

By law, it's illegal for anyone to:

How long can identity theft problems go on?

It's difficult to predict how long the effects of identity theft may linger. That's because it depends on many factors including the type of theft, whether the thief sold or passed your information on to other thieves, whether the thief is caught, and problems related to correcting your credit report.

Victims of identity theft should monitor their credit reports and other financial records for several months after they discover the crime. Credit reports should be checked once every three months in the first year of the theft, and once a year thereafter. Keep alert for other signs of identity theft.

Victims should not delay in correcting their records and contacting all companies that opened

PROTECTING AGAINST IDENTITY THEFT

How can I prevent identity theft from happening to me?
As with any crime,  you can't guarantee that you will never be a victim, but  you can minimize your risk. By managing your personal information widely, cautiously and with an awareness of the issue, you can help guard against identity theft.

What should I do if someone has stolen or scammed my personal information or identification documents?

If your information or identification documents were stolen or scammed, you have an opportunity to prevent the misuse of that information if you can take action quickly. 

Once you have taken these precautions, there really isn't anything more you need to do except to check for the signs that your information is being misused.  You don't have to file an identity theft report with the police or with the FTC until you find out if your information is actually being misused. If another crime was committed, such as theft of your purse or wallet or your house or car was broken into, report that crime to the police.

How can I prevent companies from using my personal information for marketing?
More organizations are offering consumers choices about how their personal information is used. For example, many let you "opt out" of having your information shared with others or used for marketing purposes.  For more information visit the FTC websites Privacy Initiatives and National Do Not Call Registry.

When should I provide my Social Security number?
Your employer and financial institution will likely need your SSN for wage and tax reporting purposes. Other businesses may ask you for your SSN to do a credit check, like when you apply for a car loan. Sometimes, however, they simply want your SSN for general record keeping. If someone asks for your SSN, ask the following questions:

·         Why do you need it?
 

·         How will it be used?
 

·         How do you protect it from being stolen?
 

·         What will happen if I don't give it to you?

If you don't provide your SSN, some businesses may not provide you with the service or benefit you want. Getting satisfactory answers to your questions, though, will help you to decide whether you want to share your SSN with the business.

RECOVERING FROM IDENTITY THEFT

How do I cope with identity theft?
Consider your identity theft incident as your "case." Your primary goals are to:

Develop a plan of action to accomplish these goals. Make a list of the documents you'll need and a list of companies from which you'll need to get those documents.

When contacting a company, don't assume that the person you talk to will give you all the information you need. Determine in advance what information or result you want and develop a list of questions or a strategy to achieve your goal. For example, the company you call first may say they weren't the ones that extended the credit to the thief. But if you ask, they may be able to tell you which company that did. Listen carefully and take notes. Don't end the call until you're sure you understand everything you've been told. If you don't feel you're getting the help you need, ask to speak to a supervisor.

The following tips can help keep your case organized:

What are the first steps I should take if I'm a victim of identity theft?
Follow up all calls in writing. Send your letter by certified mail, return receipt requested, so you can document what the company received and when. Keep copies for your files.

1. Call the toll-free fraud number of any one of the three major credit bureaus to place a fraud alert on your credit report. This can help prevent an identity thief from opening additional accounts in your name. As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will automatically be notified to place fraud alerts, and all three credit reports will be sent to you free of charge.  

Once you receive your reports, review them carefully to make sure no fraudulent accounts have been opened in your name or unauthorized changes made to your existing accounts.

You should continue to check your reports periodically, especially in the first year of discovery, to make sure no new fraudulent activity has occurred.

Please note: The automated “one-call” process only works for the initial placement of your fraud alert. Orders for additional credit reports or renewals of your fraud alerts must be made separately at each of the three major credit bureaus.  

2. Contact the creditors (for example, credit card companies, phone companies and other utilities, and banks and other lenders) to close any accounts that have been tampered with or opened fraudulently. Ask to speak with someone in the security or fraud department of each creditor, then follow up in writing. It's particularly important to notify credit card companies in writing. You may ask creditors for a copy of the application or other business transaction records relating to your identity theft, if you think that this information will be helpful to prove that are you are a victim. Creditors must provide this information free of charge.

3. File a report with your local police. Get a copy of the police report in case the creditors, credit bureaus or others need proof of the crime.

4. File a complaint with the FTC. The FTC maintains a database of identity theft cases which are used by law enforcement agencies for investigations. Filing a complaint also helps us learn more about identity theft and the problems victims are having so that we may better assist you. See www.ftc.gov.

What should I look for on a credit report to indicate identity theft?
Check your credit reports carefully to make sure the information is accurate. Look for inquiries you didn't initiate, accounts you didn't open and unexplained debts on your legitimate accounts. Check that information like your SSN; address(es); name and any variations, including initials, Jr., Sr., etc.; and employers is correct. Inaccuracies in this information may also be due to typographical errors. Nevertheless, whether the inaccuracies are due to fraud or error, notify the credit bureau as soon as possible by telephone and in writing.

Inquiries on credit reports from potential credit card issuers do not always mean that some one has tried to get credit in your name. Banks and credit card companies often inquire about a consumer's creditworthiness to help them target their marketing efforts. These inquiries will be identified in a designated section of the report.

How can I get copies of my credit reports?
Contact each of the three major credit bureaus:

Equifax - www.equifax.com
To order your report, call: 800-685-1111 or write:
P.O. Box 740241, Atlanta, GA 30374-0241

To report fraud, call: 800-525-6285 and write:
P.O. Box 740241, Atlanta, GA 30374-0241
Hearing impaired call 1-800-255-0056 and ask the operator to call the Auto Disclosure Line at 1-800-685-1111 to request a copy of your report.

Experian - www.experian.com
To order your report, call: 888-EXPERIAN (397-3742) or write:
P.O. Box 2002, Allen TX 75013

To report fraud, call: 888-EXPERIAN (397-3742) and write:
P.O. Box 9530, Allen TX 75013
TDD: 1-800-972-0322

Trans Union - www.transunion.com
To order your report, call: 800-888-4213 or write:
P.O. Box 1000, Chester, PA 19022

To report fraud, call: 800-680-7289 and write:
Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634
TDD: 1-877-553-7803

How much does a credit report cost?
Each credit bureau may charge you up to $9.00 for a copy of your report. However, you are entitled to one free report a year if you can show that: your report is inaccurate because of fraud; you're on welfare; or you're unemployed and plan to look for a job within 60 days. There also is no charge if a company has taken adverse action against you, such as denying your application for credit, insurance or employment, and you request your report within 60 days of receiving the notice of the adverse action.

Certain states also have passed legislation which entitle you to a free report or a report at a reduced rate.
 

How do I prove that I'm an identity theft victim?
Identity theft victims often find themselves having to prove that they're victims, not deadbeats trying to get out of paying bad debts. So how do you go about proving you didn't do something? Getting the right documents and getting them to the right people is key.

The Police Report: The police report is an important document for providing proof of the crime. Many creditors want a copy in order to absolve you of the fraudulent debts. Send a copy to each of the three major credit bureaus. They will block, or remove, the information you're disputing from your credit reports. This may take up to 30 days. The credit bureaus have the right to remove the block, or reinstate the information, if they believe it was wrongly placed. Because this initiative is voluntary, except in a few states, it's important to also follow the dispute procedures. Contact the credit bureaus to find out more about how this initiative works. If you're having trouble getting a police report.

The ID Theft Affidavit: The FTC, in conjunction with banks, credit grantors and consumer advocates, developed the ID Theft Affidavit to help you close unauthorized accounts and get rid of debts wrongfully attributed to your name. If you don't have a police report or any paperwork from creditors, send the completed ID Theft Affidavit to the three major credit bureaus. They will use it to start the dispute investigation process. You also can send the ID Theft Affidavit to creditors. Not all companies accept the ID Theft Affidavit. They may require you to use their forms instead. Check first.

Creditor Documentation: Creditor documentation can help you prove that you are a victim. For example, you may be able to show that the signature on an application is not yours. By law (the Fair Credit Reporting Act section 609(e), creditors must give you a copy of the application or other business transaction records relating to your identity theft free of charge. Creditors must provide these records within 30 days of receipt of your request. You also may give permission to any law enforcement agency to get these records.  

In order to obtain these records, you must mail your request to the address chosen by the creditor. Contact the creditor’s fraud department by telephone to find out if the creditor has chosen a specific address.  The creditor is entitled to ask you for: 

(1)   proof of your identity which may be a government issued ID card, the same type of information the identity thief used to open or access the account, or the type of information the creditor is currently requesting from applicants or customers 

            and 

(2)   a police report and a completed affidavit which may be either the Identity Theft Affidavit or the creditor’s own affidavit. 

A business does not have to provide the records in all cases. For instance, a business will not provide the records if it reviews your proof of identity and still does not have a high degree of confidence that it knows your true identity, or if you have not told the truth in making your request. A business also does not have to provide the records if it is prohibited from doing so under other provisions of state or federal law.

Once you have resolved your identity theft dispute with the creditor, ask for a letter from the creditor stating that they have closed the disputed accounts and have discharged you of the fraudulent debts. This letter is your best proof if errors relating to this account reappear on your credit report or you mistakenly are contacted again about the fraudulent debt.

What are fraud alerts and victim statements?
Fraud alerts let creditors know that fraud has been associated with your credit report. As a result, creditors may confirm that they're dealing with you and not an imposter before granting credit or other services.

Victim statements tell creditors to contact you before granting credit or other services. Victim statements may cause delays in getting credit while the creditor tries to contact you. If you have a cell phone, you may want to include that number in your statement.

The following charts describe the current fraud alert and victim statement placement procedures of the credit bureaus. Please note: TransUnion and Equifax use a combined fraud alert and victim statement. Be sure to confirm these procedures when you contact the credit bureaus as they may change.

INITIAL ALERT

RENEWALS

Are fraud alerts and victim statements always effective?
Fraud alerts and victim statements seem to be generally effective.  However, because credit grantors do not have to consider them when extending credit, you should continue to check your credit reports periodically, especially in your first year of discovery, to make sure no new fraudulent activity is taking place.   

What do I do if someone has tampered with my existing accounts?

·         Contact the fraud department of the company where your account has been tampered with.

·         Close the account and open a new one. Get a new personal identification number (PIN) or password when you open the new account. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers.

·         Dispute in writing any charges run up by the identity thief on those accounts. Insist on having debits reinstated. Ask the representative to send you the company's fraud dispute forms.

·         You may ask creditors for a copy of the application or other business transaction records relating to your identity theft, if you think that this information will be helpful to prove that are you are a victim. Creditors must provide this information free of charge.

What should I do about unauthorized charges on my credit cards?
The Fair Credit Billing Act (FCBA) establishes procedures for resolving billing errors on your credit card accounts, including fraudulent charges on your accounts and limits your liability for unauthorized credit card charges to $50 per card.

To take advantage of the law's consumer protections, you must:

The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

What do I do if someone is using my checks?
If your checks have been stolen or misused, close the account and ask your bank to notify the check verification service with which it does business. While no federal law limits your losses if someone steals your checks and forges your signature, state laws may protect you. Most states hold the bank responsible for losses from a forged check. At the same time, most states require you to take reasonable care of your account. For example, you may be held responsible for the forgery if you fail to notify the bank in a timely manner that a check was lost or stolen. Contact your state banking or consumer protection agency for more information.

You can contact major check verification companies directly for the following services:

TeleCheck:
1-800-710-9898 or 927-0188

Certegy, Inc. (previously Equifax Check Systems):
1-800-437-5120

How do I get back money that was stolen from my debit card account or through other electronic fund transfers?
The Electronic Fund Transfer Act provides consumer protections for transactions involving an ATM or debit card or other electronic way to debit or credit an account. It also limits your liability for unauthorized electronic fund transfers.

It's important to report lost or stolen ATM and debit cards immediately because the amount you can be held responsible for depends on how quickly you report the loss.

The best way to protect yourself in the event of an error or fraudulent transaction is to call the financial institution and follow up in writing - by certified letter, return receipt requested - so you can prove when the institution received your letter. Keep a copy of the letter you send for your records.

After receiving notification about an error on your statement, the institution generally has 10 business days to investigate. The financial institution must tell you the results of its investigation within three business days after completing it and must correct an error within one business day after determining that the error has occurred. If the institution needs more time, it may take up to 45 days to complete the investigation - but only if the money in dispute is returned to your account and you are notified promptly of the credit. At the end of the investigation, if no error has been found, the institution may take the money back if it sends you a written explanation.

What do I do if my bank won't correct the fraud?
If you're having trouble getting your financial institution to help you resolve your banking-related identity theft problems, including problems with bank-issued credit cards, contact the agency with the appropriate jurisdiction. If you're not sure which of the agencies listed below has jurisdiction over your institution, call your bank.

What do I do if someone has opened new credit accounts in my name?
Contact the fraud department of each creditor. Close the accounts and dispute any charges run up on those accounts. Do not pay the charges. Most creditors will require you to fill out fraud forms. To save yourself time, ask if the company accepts the ID Theft Affidavit. If not, ask the representative to send you the company's fraud dispute forms. Find out what, if any, other documentation, such as a police report, the company will need. You may ask creditors for a copy of the application or other business transaction records relating to your identity theft, if you think that this information will be helpful to prove that are you are a victim. Creditors must provide this information free of charge.

How do I find contact information for a company that has opened fraudulent accounts?
If the company is listed in your credit report, the credit bureau can provide the contact information. If it's a well-known company, you may be able to obtain a listing from your telephone directory book or the toll-free directory (1-800-555-1212). You also can use a search engine on the Internet, or your local librarian may be able to help you.

How do I correct inaccurate information on my credit reports? (See Website Page for The Fair Credit Reporting Act (FCRA))

How do I stop debt collectors from contacting me? (See Website Page for the Fair Debt Collection Practices Act (FDCPA)).

 

What do I do if the identity thief has gotten a driver's license in my name?
If you think your name or SSN is being used by an identity thief to get a driver's license or a non-driver's ID card, contact your DMV. If your state uses your SSN as your driver's license number, ask to substitute another number.

What do I do about stolen mail or fraudulent changes of address?
The U.S. Postal Inspection Service (USPIS) is the law enforcement arm of the U.S. Postal Service and is responsible for investigating cases of identity theft. USPIS has primary jurisdiction in all matters infringing on the integrity of the U.S. mail. If an identity thief has stolen your mail to get new credit cards, bank or credit card statements, pre-screened credit offers or tax information, has falsified change-of-address forms, or obtained your personal information through a fraud conducted by mail, report it to your local postal inspector. You can locate the USPIS district office nearest you by calling your local post office or checking the list at www.usps.gov/websites/depart/inspect.

What do I do if my passport is lost or stolen?
If you've lost your passport or believe it was stolen, or is being used fraudulently, contact the United States Department of State (USDS) at www.travel.state.gov/passport_services.html or call a local USDS field office. Local field offices are listed in the Blue Pages of your telephone directory.

What do I do if the thief has obtained phone service in my name?
If an identity thief has established phone service in your name, is making unauthorized calls that seem to come from - and are billed to - your cellular phone, or is using your calling card and PIN, contact your service provider immediately to cancel the account and/or calling card. Open new accounts and choose new PINs. If you're having trouble getting fraudulent phone charges removed from your account or getting an unauthorized account closed, contact the appropriate agency from the list below.

For local service, contact your state Public Utility Commission, listed in the Blue Pages of your telephone directory.

For cellular phones and long distance, contact the Federal Communications Commission (FCC) - www.fcc.gov.

When should I contact the Social Security Administration?
The Social Security Administration's Office of the Inspector General investigates cases that involve the use of your SSN to fraudulently obtain Social Security benefits. They also investigate cases that involve the use of counterfeit SSN cards, the manufacturing or selling of counterfeit SSN cards, the selling of legitimate SSN cards or information, or the misuse of SSNs linked to terrorist groups or activities. Report any of these allegations to the SSA Fraud Hotline. Call: 1-800- 269-0271; fax: 410-597-0118; write: SSA Fraud Hotline, P.O. Box 17768, Baltimore, MD 21235; or e-mail: oig.hotline@ssa.gov.

You also can call SSA at 1-800-772-1213 to verify the accuracy of the earnings reported on your SSN, and to request a copy of your Social Security Statement or to get a replacement SSN card if yours is lost or stolen. Follow up in writing.

For more information: http://www.ssa.gov/pubs/idtheft.htm

Should I apply for a new Social Security number?
Under certain circumstances, the Social Security Administration may issue you a new SSN - at your request - if, after trying to resolve the problems brought on by identity theft, you continue to experience problems. Consider this option carefully. A new SSN may not resolve your identity theft problems, and may actually create new problems. For example, a new SSN does not necessarily ensure a new credit record because credit bureaus may combine the credit records from your old SSN with those from your new SSN. Even when the old credit information is not associated with your new SSN, the absence of any credit history under your new SSN may make it more difficult for you to get credit. And finally, there's no guarantee that a new SSN wouldn't also be misused by an identity thief.

Should I use a credit monitoring service?
A variety of commercial services are available, for a fee, that will monitor your credit reports for activity and alert you to changes; prices and services vary widely. Many of the services only monitor one of the three major credit bureaus. As with any product or service, make sure you understand what you're getting before you buy. Also, check out any company you're not familiar with before doing business with them. Contact your local consumer protection agency or the Better Business Bureau to find out if they have any complaints on file.

Can a credit repair company clear up my record for me?
Claims by companies that they can clear up your credit record are often misleading or false. Identity theft victims, in particular, need to clear up debts with the original creditor. Most companies won't deal with a third party. For more information see Credit Repair: Self-Help May Be Best.

What should I do if I've done everything you've advised, and I am still having problems?
There are cases where victims do everything right and still spend years dealing with problems related to identity theft. The good news is that most victims can get their cases resolved by being vigilant, assertive and organized. Don't procrastinate on contacting companies to address the problems. Don't be afraid to go up the chain of command or make complaints, if necessary. Keep organized files. If you haven't filed a complaint with the FTC or updated it, you should do so and provide details of the problems that you are having. Contact Legal Services in your state or your local bar association for help in finding an attorney.

IDENTITY THEFT LAWS

Is identity theft a federal crime?

Yes. The Identity Theft and Assumption Deterrence Act, enacted by Congress in October 1998 (and codified, in part, at 18 U.S.C. 1028(a)(7)) is the federal law directed at identity theft.

The Act makes it a federal crime when someone:

"knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of federal law, or that constitutes a felony under any applicable state or local law."

Note that under the Act, a name or SSN is considered a "means of identification." So is a credit card number, cellular telephone electronic serial number or any other piece of information that may be used alone or in conjunction with other information to identify a specific individual.

In most instances, a conviction for identity theft carries a maximum penalty of 15 years imprisonment, a fine and forfeiture of any personal property used or intended to be used to commit the crime. Schemes to commit identity theft or fraud also may involve violations of other statutes, such as credit card fraud; computer fraud; mail fraud; wire fraud; financial institution fraud; or Social Security fraud. Each of these federal offenses is a felony and carries substantial penalties - in some cases, as high as 30 years in prison, fines and criminal forfeiture.

What federal agencies investigate identity theft crimes?

Violations of the The Identity Theft and Assumption Deterrence Act are investigated by federal law enforcement agencies, including the U.S. Secret Service, the FBI, the U.S. Postal Inspection Service and Social Security Administration's Office of the Inspector General. Federal identity theft cases are prosecuted by the U.S. Department of Justice.

Is identity theft a crime in my state?
Most states have passed laws related to identity theft. Where specific identity theft laws do not exist, the practices may be prohibited under other laws. Contact your State Attorney General's office or local consumer protection agency to find out whether your state has laws related to identity theft.

Are there other laws that help prevent identity theft or that assist victims?
There are a number of laws that have been passed at the state and federal level which are designed to reduce identity theft or to provide assistance to victims.  Contact your State Attorney General's office or local consumer protection agency. For additional information about federal laws, search the government's Web site for legislative information.

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