Overcome Identity Theft: Your Hassle-Free Guide

No one wants to be targeted by an identity thief. A victim’s best case scenario is spotting a few fraudulent transactions on a credit card statement that can be cleared up with a quick call to the bank. More complex cases of fraud, on the other hand, can feel nearly impossible to overcome. If someone is out there opening multiple loan accounts in your name, follow these crucial steps to shut them down and protect your credit rating:

Get Organized

While a little anti-climactic, the first step to any successful fraud recovery is to stay on top of your paperwork and track each step you take. Here are a few suggestions:

1. Gather evidence of fraud, like a credit report containing unauthorized accounts or letters from debt collectors concerning debt you didn’t accrue
2. Keep a log of who you spoke to and when, what was discussed, and when follow-up action is required
3. Keep important phone numbers and mailing addresses on hand for relevant creditors, the credit bureaus, and other resources like the police and the FTC
4. Keep all paperwork that arises from your case accessible and in one spot

Place A Security Freeze On Your Credit Reports

A security freeze is the ultimate lock-down on your credit. If someone is opening new accounts in your name, freezing your credit is a surefire way to block that from happening in the future. By denying access to your credit reports, lenders aren’t going to be able to extend new credit in your name to anyone. To place security freezes, visit each bureaus’ website:

• TransUnion
• Equifax
• Experian

Place a security freeze with all three bureaus for complete protection. If you can’t provide the required documentation, such as a police report and a copy of an identity theft complaint with the FTC, you may have to pay a small fee to freeze your credit. Note that it will be hard for you to apply for new loans when your credit is frozen. You’ll need to temporarily or permanently lift the freeze if you want to take out a new loan. Also keep in mind that if you change addresses or any other personal information, a security freeze prohibits your creditors from updating the credit bureaus with your new information.

Check Your Credit

Victim of serious cases of identity theft must continue to stay on top of their credit to make sure it remains fraud-free. The easiest way to do this is to enroll in a credit monitoring service. A good credit monitoring service will give you continuous online access to your Equifax, Experian, and TransUnion credit reports and scores. Instead of remembering to pull your credit reports regularly, a credit monitoring service alerts you to important changes in your credit like new inquiries and account openings, or when your personal information is edited. A credit monitoring service is convenient, but usually costs a monthly fee.

For more detailed information and resources to help you recover from identity theft, download the free personalized Identity Recovery Theft Kit from SpendOnLife.

Carrie Davis is a personal finance blogger at SpendOnLife.com, a site dedicated to giving readers true and accurate information about credit, debt, and identity theft. She is FCRA-certified and has a passion for educating others on how to achieve financial independence. Follow Carrie through the SpendOnLife RSS feed or on Twitter @SpendOnLife.