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The Insurance Information Institute reported that in 2018 alone, 14.4 million people were the victim of identity theft. Altogether, they lost around $1.7 billion. Which, we can all agree, is quite a big chunk of change.
While there’s no way to protect yourself 100 percent from identity theft, there’s plenty you can do to make yourself harder to victimize. Knowing what to do if you think your identity has been stolen, for example, can help you put a stop to your losses as quickly as possible.
Identity theft refers to wide range of crimes that involve someone using your personal information to receive benefits in your name. Here are some examples of identity theft from the Federal Trade Commission:
When you’re the victim of identity theft, you can experience numerous negative consequences, such as:
It’s not always obvious that your identity has been stolen. Consider these signs of identity theft and whether they apply to you:
Keep an eye out for anything that seems unusual, and be ready to take action if you think any of your accounts are in danger.
If you’re a victim of identity theft, you have rights under the Fair Credit Reporting Act. That includes being notified if a business or other entity suspects your information might have been compromised. You also have the right to request copies of any information that might have been released about you.
In addition to asserting your rights under the FCRA, it’s a good idea to take a few actions when you believe your identity has been stolen. These are some of the most critical:
If you‘ve experienced loss due to the identity theft, file a police report. Even if they aren’t able to find and prosecute the identity thief, police reports are important documentation. Banks or creditors might require them if you ask for assistance, and businesses can be required to provide relevant records to the police.
The police or your financial institution may also ask you to fill out and notarize an Affidavit of Forgery. This is a statement affirming under oath that you believe you are the victim of fraud or identity theft. Even if not required, you should search for a template online (which are available for free), download, fill it out, and get it notarized so that you have it on hand if you need to contest a debt.
Some institutions will require it before processing any refund or beginning an investigation, but it is always best to fill out a document like this as close to the incident as possible so you have a good recollection of the incident. Your financial institution may require you also to fill out their own form as well.
The Federal Trade Commission provides a reporting service through IdentityTheft.gov, and you can create an account and report the identity theft there. The FTC provides a step-by-step recovery plan to help you address the identity theft.
Send credit dispute letters to the credit bureaus explaining how you were a victim of identity theft and ask the bureaus to remove any inaccurate information on your credit history related to the issue. Make sure you also inform your lenders and financial institutions. They may be able to provide some support in monitoring or safeguarding your other assets.
Another option is to close the jeopardized account and open a new one. Once an identity thief has your information, they may be able to get into your account and continue stealing from you. Closing your account may impact your credit mix and age and have a negative impact on your overall score.
So, before your close your account, make sure you reach out to your credit card company, bank or lender to find out how you can switch to a new account.
In addition to addressing your current situation, you might want to take action to protect yourself in the future. Sadly, once your identity has been stolen, it might be more likely to happen again. For example, your information might now be floating around for sale on the dark web—we know it sounds like a fake movie thing, but unfortunately, it’s real.
Here are some things you might consider doing to protect your identity in the future:
Yes, you can recover from identity theft. In some cases, it can take a long time and be a complicated process. But it’s important to start working as soon as possible to cope with identity theft and move on to a brighter financial future.
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