How to Recover from Fraud

You know how easy it is for identity thieves to get your personal information and set about ruining your life and you are always very careful, especially online. But, somehow your privacy was compromised and you suspect someone is using your information to commit fraud. Perhaps it was that phone call that sounded so authentic about your bank account, saying that if you did not provide the information ‘right now’ your account would be frozen. Or maybe the completely innocent and honest looking waitress at the restaurant the other night who took your credit card to record the charges for the meal. Whatever, your identity has been compromised and you need to take steps to clean it up. You need to move fast because identity thieves will not wait around to start using your information.

Difficulty: Moderate

Instructions

1. Change your passwords. Even if you did not knowingly provide your password information to anyone, change passwords anyhow. Go to your bank accounts, credit card accounts, mortgage accounts, any online accounts that deal with your finances and change the passwords. Do not use the same password on multiple accounts – make them different and make them hard to figure out.

2. Contact the fraud departments of any and all accounts you feel have been compromised. Give them details, including the last legitimate transaction date, amount, and who it was with. The banks and credit card companies will likely recommend closing your accounts and opening new ones. This may be a bit inconvenient, but it is the best way to stop the thieves.

3. Check your credit report. Get a copy of your most recent credit report to see if there have been any attempts to open new accounts. If you are contacted by a company you have never heard of regarding an account you supposedly opened, or if your mail was stolen or you lost your purse or wallet, you are eligible for a free credit report. See link in Resources below.

4. Place a Fraud Alert or even a Credit Freeze on your file at all three major credit bureaus. A Fraud Alert will ensure that no new credit accounts are opened without your approval. A Credit Freeze will stop ALL credit action in your name. Credit Freezes are available in 47 of 50 states. (See links in Resources below)

5. Start Researching your accounts. Contact each company you think has been compromised and review your account thoroughly with them. Note any discrepancies in address or login information. If there are charges you are not aware of or you see that someone has changed the address or other personal information on the account, close the account. If you open a new account, ask the company to put a password on the account and have it set up so no one can access it without that password.

6. File a police report. When you contact the police department, make sure they file the report under the category of Identity Theft. Get a copy of the report. As the investigation continues, banks and credit card companies may need proof that the crime occurred.

7. Document everything! As you are speaking with the fraud departments of your bank, credit card companies, mortgage company, credit reporting bureaus, etc., make notes. Get names of the people you are talking to, record any reference numbers they give, write down their phone numbers and extensions. Note any important statements made and write down the date and time you spoke with them. Keep these notes! They could save you hours of work in the future.

8. Talk to the Government Agencies that can help you. You can file a complaint with the Federal Trade Commission (FTC). This agency will provide you with information that will help you resolve any financial problems that may result from the theft, but cannot bring criminal cases. You need the police for that. If you suspect someone has submitted a change of address, contact the US Postal Service Fraud department and file a Mail Fraud complaint. The form is at the link below. The Social Security Administration can help you with issues involving the buying and selling of counterfeit or legitimate SSN cards or misuse of a SSN card by someone else to obtain benefits. Finally, contact the Internal Revenue Service if you suspect your identity as been compromised.

9. Report stolen checks. If the thief is using checks stolen from you, you can put a stop payment on them at the bank, close the account, and contact the major check verification companies. You can find links and phone numbers to all of them under the Fraud Contact Information link in resources below. If you know that a particular check was written at a certain company, find out what check verification service that company uses and contact them directly to report the fraud.

Tips & Warnings

• While online to change your passwords, check your transaction history to see if there have been any fraudulent charges made and note them.
• Document the time you spend doing all this as if the predator is caught and goes to trial, you may be able to claim your time as a loss and be reimbursed for it.
• No matter how careful you think you are being, there is an identity thief out there who is looking for your information. Beware and be safe.

Resources

• Fight Identity Theft Blog
• Fraud Contact Information for Credit Bureaus - Experian, Equifax, TransUnion
• Credit Freeze – Best Protection
• Federal Trade Commission Identity Theft Site
• Mail Fraud Complaint
• Social Security Administration Fraud Reporting
• Report Fraud, Waste, & Abuse to the IRS

[sweetspirit]

on 7/30/2009 Very good information for someone if they were ever a victim of fraud.

[ScarlettOHairy]

on 7/28/2009 Great tips for protecting ourselves from fraud. It is every where.

[mardev]

on 7/24/2009 Unfortunately fraud is becoming part of all of our lives - thanks for the good advice! RRC'd

[velosity]

on 7/21/2009 Excellent article. Very well written and VERY informative. Super spooky stuff going on out there. Nice of you to share your great knowledge!