Identity Theft

How It Works

Identity theft occurs when a fraudster steals personal or financial information, such as Social Security numbers (SSN), bank account details, or credit card numbers, to commit fraud or theft. The stolen information is often used to open new credit accounts, make unauthorized purchases, or apply for government benefits in the victim’s name.

Common Methods of Identity Theft

• Account takeover: Gaining control of someone’s bank or financial account by stealing savings, checking or credit card information and diverting funds away from the original accountholder.
• Medical identity theft: Using someone’s identity to obtain medical services or benefits.
• New account fraud: Individuals open new credit accounts using stolen personal information.
• Tax identity theft: Filing a tax return using someone else’s SSN to claim fraudulent refunds.

Warning Signs

• Unfamiliar accounts, loans or charges on your credit report or bank statements.
• Unexplained charges on your bank or credit card statements.
• Receiving bills or collection notices for accounts you didn’t open.
• Notification that one or more of your accounts has been closed without your authorization.
• Denial of credit for no apparent reason or unexpected changes to your credit score.
• Notices from the Internal Revenue Service (IRS) that someone filed a tax return in your name.
• Missing bills or financial statements, which may indicate a change of address was requested without your knowledge.
• Medical bills or insurance coverage for services you didn’t receive.

Ways to Avoid It

• Monitor your credit reports
  • Obtain free credit reports from AnnualCreditReport.com.
  • Regularly review your credit reports for any unauthorized inquiries or accounts, suspicious activities, or errors.
• Shred personal documents: Safeguard sensitive information by shredding documents, like bank statements, credit card offers, and old tax records.
• Use strong passwords: Ensure all your online accounts have long, complex passwords and enable two-factor authentication where possible. Be sure all your online accounts have different passwords.
• Be cautious with your SSN: Share your SSN only when necessary and make sure it’s stored securely.
• Use black gel ink on checks: Black gel ink is highly resistant to check washing, a common scheme where chemicals are used to erase ink from a check to rewrite amounts and payees.

Ways to Report It

Identity theft is a serious issue that can cause significant financial and personal stress, as well as financial loss impacting the victim’s credit reports and access to credit. Take immediate action if you suspect your identity has been stolen.

• Alert your bank or credit card company
  • If you shared any financial information or made a fraudulent payment, contact your financial institution immediately to report the potential fraud.
  • Request them to place a stop payment on any charges and monitor your accounts for unauthorized transactions.
  • Consider requesting a new account.
• Contact the companies involved
  • Immediate action: If you notice suspicious activities, such as unauthorized charges, contact the company where the charge was made.
  • Close or freeze accounts: Ask the fraud department to close or freeze the affected accounts to prevent further harm.
• Place a fraud alert on your credit report
  • Contact credit reporting agencies: Place a fraud alert or credit freeze on your credit reports by contacting one of the three major credit bureaus. The bureau you contact will inform the other two.
    • Equifax: 1-800-525-6285
    • Experian: 1-888-397-3742
    • TransUnion: 1-800-680-7289
  • A fraud alert makes it harder for identity thieves to open accounts in your name.
  • Duration: A fraud alert lasts for one year, but you can extend it.
• Report the fraud to the Federal Trade Commission (FTC)
  • Online: Visit the FTC’s IdentityTheft.gov to report the theft and create a recovery plan.
  • Phone: Call the FTC at 1-877-438-4338.
• Report to the Internet Crime Complaint Center (IC3)
  • Online: Submit a complaint to the IC3, a division of the FBI.
  • This is especially useful for internet-related crimes.
• File a report with local law enforcement
  • Documentation: Bring a copy of your FTC Identity Theft Report, a government-issued ID, proof of your address, and any proof of the theft.
  • Additional steps: Ask for a copy of the law enforcement report as it can help clear fraudulent information from your records.
• Notify the IRS
  • IRS Fraud Hotline: If your SSN has been compromised, contact the IRS to prevent tax-related identity theft.
  • Phone: 1-800-908-4490
  • Online: IRS Identity Theft Central
• Contact the Social Security Administration (SSA)
  • Check for misuse: If you believe your SSN is being misused, contact the SSA.
  • Phone: 1-800-269-0271
  • Online: Social Security Administration

Remember: Taking prompt action can significantly reduce the impact of identity theft on your financial and personal life. Stay vigilant and proactive to protect your identity.