Identity theft and what to do if you become a victim

Identity or credit theft happens to a large number of unsuspecting people, so it might easily affect you. What if you become a victim of a financial scam?

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Identity or credit theft is an escalating problem, and based on information from some forecasts, will impact several million Americans this year to one degree or another. Financial crimes might be as simple as acquiring access to your eBay account or it might be as detailed as buying a house in your name and leaving you with the mortgage payments. Working your way out of trouble if you have been robbed by a criminal intent on stealing your identity can be a frightening experience.

The identity thieves taking part in these activities are becoming more clever by the day, and it's hard to stay abreast of the latest methods of identity theft if you have other things to do, such as leading a regular life. It can happen to anyone, even if they have taken tremendous precautions to avoid being victimized.
 

Here is a list of some things you may want to do if you think your identity has been taken or compromised.

• If possible, put a freeze on your credit report. Some states allow you to put a freeze on your credit that will prevent anyone from doing a credit check on you until you unlock it. Without a credit check, no one can obtain credit on your behalf, so a freeze becomes a proactive measure. A few states only permit freezing credit if you have been a victim of identity theft, so you may need to show a police report to prove it.
• Get in touch with the three primary credit reporting agencies - Fraud alerts don't always work, but they represent a good step towards clearing up an identity theft problem The credit reporting agencies can put a note in your credit report. In theory, such a notation, known as a "fraud alert" will require that you be notified should anyone attempt to open an account or borrow money in your name. Call Equifax, Experian, and Trans Union and let them know that you have become a victim..
• File a crime report - A mortgage lender isn't going to write off a $200,000 loan just because you tell them, "I didn't buy that"; you need legal proof. It may not help catch the crook, but filing a police report will go a long way towards persuading your lenders that you have, indeed, been scammed. If it is in your name, you are accountable for it unless you can prove otherwise, so you need to report the crime to the police.
• Get rid of any accounts from stolen credit cards - Call your bank about obtaining a new debit card. They will probably issue you a credit card with an altogether different account number. Ask your issuing bank for new bank cards to replace the stolen ones.

The process of recovering from identity or credit theft is tedious and not a lot of fun. It might take months, or even years, to completely rid yourself of harm done by a stranger. It's a good idea to keep all of your financial information in one safe place so that you can access all of it quickly should you need to when an emergency strikes.