Five tips to avoid identity theft

Identity theft victims reported losing more than $15 billion in 2014. That’s more than the combined losses from robbery, motor vehicle theft and other property thefts in the same period. While it’s not surprising that identity theft can make you feel vulnerable, there are things you can do to take control.

Step 1: Request your credit report when you realize that you have become a victim. You should quickly find out about any errors that appear on your report. Visit annualcreditreport.com for free copies of your report from the three nationwide credit reporting companies: Experian, Equifax and Transunion.

If you see errors or fraudulent charges, report them to the credit reporting companies immediately. They will investigate those items and then forward the information to the company that reported them. The company has 30 days to respond.

If the company providing the loan finds an error, it must notify the credit reporting company so that your file can be corrected. If your credit changes because of the company’s investigation, the reporting company will send you a letter with the results.

Step 2: Place a fraud alert to make it more difficult for an identity thief to open more accounts in your name. Call any of the three national credit reporting companies and ask them to put an initial fraud alert on your credit report. They should contact the other two companies about their alert.

equifax

1-800-525-6285

experience

1-800-397-3742

trans union

1-800-680-7289

Although there is an alert on your report, any time a business makes a credit inquiry, they will need to verify your identity before issuing credit in your name. This may require us to contact you, so make sure you have updated your credit report with your current contact information. The alert will remain on your report for 90 days and will allow you to request an additional free copy of your report from each of the three credit reporting companies.

Step 3 – Consider a credit freeze. A credit freeze, also known as a security freeze, gives you maximum control over who has access to your credit. You can prevent a thief from opening new accounts in your name because lenders and other creditors won’t be able to get your credit report.

With a credit freeze, even you will have to take special steps to apply for credit. You can still open new accounts, apply for a job, rent an apartment, buy insurance, refinance your mortgage, or do anything else that requires your credit report. But companies will need to verify your identity, so they may need to contact you and you will need to call the reporting company to lift the freeze in order for the company to review your report. Again, make sure they have your most up-to-date information through your credit report.

A few things to know: Due to strict laws, you will need to contact each reporting company separately to place a credit freeze. Also, placing a credit freeze does not affect your credit score. Finally, the cost depends on where you live. If you are 65 or older, or are a victim of identity theft and file a valid incident or investigative report, a complaint with a law enforcement agency or the Department of Motor Vehicles (DMV), the fee will be waived.

Step 4 – File an Identity Theft Report. An Identity Theft Report is a great weapon. You can use it to remove fraudulent information from your credit report; prevent a business from collecting debts resulting from identity theft, or from selling the debt to another business for collection. You can also use it to place an extended fraud alert on your credit report and to obtain information about accounts the identity thief opened or misused.

Filing an identity theft report is simple: File a complaint about the theft with the FTC. When you’re done typing in all the details, print a copy of the report. It will be printed as an Affidavit of Identity.

File a police report about your identity theft and get a copy of the police report or the report number. (Be sure to bring your FTC Identity Theft Affidavit and attach it to your police report.)

Some credit reporting companies may request more information or documentation than is included in the Identity Theft Report. It depends on the policies of the credit reporting company and the company that sends information about you to the reporting company.

Step 5: Report fraud on existing accounts. For any of your accounts showing fraudulent charges, please contact the company immediately. Explain that you are a victim of identity theft. Close the account and continue your reporting process. You can ask if they will accept your identity theft report. Additionally, write to the fraud department of each business. By law, they have to review your letter, investigate your complaint, and tell you the results of their investigation. If the information is incorrect, the company must notify the credit reporting company. Be sure to request a letter from the company confirming that they removed the fraudulent information.

On any credit card or bank account that remains open, take steps to protect yourself. Change your password and put keywords in the accounts that allow it. Passwords are offered on some accounts as an added level of security. Usually you can choose your code word. You may consider using something that only you know and is not publicly known. Finally, continually monitor your accounts and keep an eye out for any suspicious activity.