4 Steps to Take if You are the Victim of Identity Theft
November 24, 2010“Hello, Mr. Ward? This is your credit card company. We just wanted to know if you have purchased gas in Terra Haute, Indiana, recently.”
Does this sound familiar? Every year thousands of debit and credit card numbers are stolen and sold over the internet. Sometimes your card issuer is able to catch the unauthorized use early, as was the case in my particular instance. Other times you start receiving strange things in the mail. One recent caller began receiving merchandise he never ordered. There are a few steps you should take when you suspect that your card number has been compromised:
1. Cancel your card immediately
This is fairly obvious, but it is also necessary. Under the law, you are only responsible for the first $50 of unauthorized use on a credit card, but you have to report the unauthorized use right away, otherwise you may be on the hook for charges made after you discovered the unauthorized activity.
2. Monitor your credit
Having your card number stolen is bad enough, but it can also be the result of someone trying to steal your identity. Identity theft is when someone uses your Social Security number and/or other personal information to apply for credit in your name. If you discover that your card number has been compromised, request a copy of your credit report and look for anything suspicious like unfamiliar accounts or an increase in inquiries. Receiving letters from creditors from whom you’ve never applied for credit may also be an indication that someone is trying to steal your identity.
3. Place a fraud alert on your credit report
In most cases a stolen card number is just that and nothing more, but if you suspect that someone is attempting to steal your identity, then you should place a fraud alert on your credit report right away. A fraud alert stays in effect for 90 days and requires creditors to take extra measures to verify your identity before extending credit.
If you have been the victim of identity theft, don’t panic. You will want to complete an Identity Theft Affidavit and contact your local law enforcement agency to file a report. In addition, you can put an extended fraud alert on your credit report. This has the same effect as a standard fraud alert except it remains in effect for 5 years.
4. Reduce your chances of becoming a victim
Many card numbers are stolen by “skimmers” who swipe your card through a small electronic device that records your card number. Never let someone walk away with your debit or credit card unless you absolutely trust what they are going to do with it. Also, never give your Social Security number to anyone you have not contacted for a specific reason, and only if you understand the nature of what they are going to do with it. Identity thieves will pretend to be legitimate sources when soliciting information from you, and financial institutions will NEVER use email to ask you to verify account information, so when in doubt, be extra cautious.
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