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Credit and Debt :  Protect Credit

Identity theft. The problem is real. And it's growing rapidly each year. Thousands of new cases are reported each month to police and credit card issuers. Victims are often alerted by the same warning signs -- charges they didn't sign for, credit accounts they didn't open, credit reports full of debts they didn't know about, or credit statements that never arrive.

Identity thieves capture your personal information through a variety of ways -- employers, local courthouses, personal trashcans, or the internet.  Many thieves are roommates, friends, relatives, or co-workers -- people you normally trust. Because they see you on a daily basis, they have better access to your personal information. 

A Social Security number and date of birth are usually all that is needed to open a credit card account. Once this is accomplished, there is no stopping an identity thief. Renting an apartment or even buying a car in a victim's name is not uncommon. Victims are often denied credit, mortgages, utilities, or student loans -- a result of the thieves' fraudulent actions. 

Take Action
    
If you become the victim of identity theft, you should take the following action:

1) Contact. Contact the fraud departments at each of the three major credit bureaus. Have them add a "fraud alert" to your credit profile. Specify that no new credit should be approved until the creditor calls you to verify the application.  Also be sure to request copies of your latest credit report.

2) Report. Report the identity theft to local law-enforcement authorities and other federal agencies such as the Secret Service, Post Office, or FBI. File a police report and keep a copy in case creditors need proof of the crime.

3) Call. Call creditors, banks, employers, or other businesses and let them know fraud has occurred. You may need to close some accounts in order to thwart the thieves' efforts and prevent further damage to your credit. Follow up in writing and send a copy of the police report if requested.

For additional information and support, contact the Privacy Rights Clearinghouse, which provides information on how to network with other identity theft victims.


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