What happens when your identity is stolen? The first signs that you may have fallen victim to identity theft will probably come as a surprise. Perhaps you receive a call from a creditor you aren’t familiar with, receive a bill for a product you never purchased, or discover that someone has taken out a loan or mortgage in your name. Any way you look at it, the detection of identity theft is frightening and extremely personal. However, there are simple, straightforward steps to take that can help you recover from identity theft, mitigating long-term damage to your finances.
- Start a log. First things first, a detailed log is vital to an effective recovery from identity theft. Record all information about every communication you have in regard to your identity theft and recovery process. Diligently include names, dates, times, email addresses, and telephone numbers for each communication you have with all law enforcement officials, as well as the people involved at each credit reporting agency, bank and financial institution.
- File an Initial Fraud Alert. Contact any of the three credit reporting agencies and inform them that you suspect you are a victim of identity theft. The agency you contact must inform the other two and over the following 90 days, you will be immediately notified if any changes occur on your credit report. If you confirm that you have been a victim of identity theft, you may end up with an Extended Fraud Alert on your credit report. This higher-level alert may stay active for seven years.The three credit reporting agencies are:
- Equifax – (800) 525-6285
- Experian – (800) 397-3742
- TransUnion – (800) 680-7289
- Close affected accounts, stop payments on checks, and change every password. As soon as you become aware of any unauthorized intrusions into your personal finances, close the affected credit cards, stop payment on any stolen checks, and change every password in your personal finance portfolio.
- File a police report and Federal Trade Commission (FTC) Identity Theft Affidavit. Inform the police of the crime by filing a detailed police report. It’s a good idea to complete the FTC Identity Theft Affidavit along with the police report. Click here to view a printable FTC Affidavit. Obtain copies of the police report, as creditors will want evidence showing that a crime has been reported. Write down the names and phone numbers of each law enforcement official involved in the process of filing the report, since creditors may want to talk to the police as well.
- Order your credit reports. Filing the Initial Fraud Alert entitles you to one free credit report from each of the three agencies. Once you have obtained your reports, read each one thoroughly, noting any discrepancies, unknown accounts, or unauthorized charges. If you identify unauthorized accounts, inform the related businesses’ fraud departments by phone, and then follow up in writing via certified mail with a return receipt.
- Create an Identity Theft Report. An Identity Theft Report is a combination of two documents: the FTC Identity Theft Affidavit and a copy of the police report. Filing an Identity Theft Report with the FTC places an Extended Fraud Alert on your credit report, helping you remove false information from your credit report, obtain information about unauthorized accounts, and stop collections companies from contacting you in regard to fraudulent debts. Click here for more information on recovering from identity theft from the FTC.
The damage to your finances resulting from identity theft may take years to fully overcome. However, the greater part of the crisis can be avoided with careful attention and prompt action. Keeping the six steps above in mind will help you get on the right track to a speedy fiscal recovery in the unfortunate event that you fall victim to identity theft.
To best protect yourself against the expenses associated with identity theft, you may wish to consider investing in identity theft coverage, which is not typically included under a standard homeowners insurance policy. While some companies offer identity theft insurance as a stand-alone policy, others offer it as an endorsement to your homeowner’s insurance, providing identity theft expense reimbursement coverage. As independent agents, we represent more than 25 of our nation’s top insurance carriers, and we work with these companies to find the best rates and coverage options for each of our clients. For additional information or to get a free quote for identity theft insurance, please call us today at 603-882-2766 or click here to submit our online quote request form.
At Eaton & Berube Insurance, we work to ensure that you, your finances, and your other meaningful assets remain protected. For additional safety tips and useful resources, please subscribe to our blog or contact us.