Financial
identity fraud is on the rise as account takeovers and application frauds
increase in numbers. Existing account fraud or account takeover fraud is when
the credit or debit card information is acquired and the criminal uses either
an actual, counterfeit card, or account number and expiry date (“the card not
present” transaction). Victims may learn of the account takeover only when
checking accounts online or receiving monthly account statement.
Application
or new account fraud is when the criminal uses identifying information or
sensitive personal data to open fresh accounts in your name. Application fraud
is not something one would know about until monthly account statements reach
you. If you want to ensure quick action, reporting identity fraud is critical.
Financial identity fraud victims should have a recovery plan in place. Here's
how you go about reporting identity fraud and ensuring that criminals don't run
away with your personal data and your money.
#1 Contacting Credit Bureaus
This is the
first step to take while reporting identity fraud if your Social Security
number has been compromised or you are a victim of fresh account fraud. The
fraud alert needs to be placed online as well as with any one of three credit
agencies namely Equifax, TransUnion and Experian. When a fraud alert is placed at these credit bureaus, reporting identity fraud becomes easier. The fraud
alert ensures that the credit report is flagged. This notifies credit card
issuers to carry out identity verification before credit issue. The initial
fraud alert can only be placed for around 90 days. Credit bureaus will also
send a notice of rights on reporting identity fraud. Get a copy of your credit
report, extension of fraud alert to 7 years and ensure lasting protection from
the scammer.
#2 Alert Credit Issuers
Another set
of people who need to be alerted when you are reporting an identity fraud is
the credit issuers. Credit grantors must be notified by the bureau about the
fraudulent account. Credit bureaus should check for names of credit grantors
with whom fraud accounts have been opened up, in case this information is
missing from the credit report. Credit bureaus should also report in writing
about who else has received the credit report and correcting the errors
therein.
#3 Monitor Credit Reports
Reporting
an identity fraud should also be coupled with precautionary measures such as
monitoring credit reports. Fraud alerts do not prevent new accounts from being
opened by the imposter. So credit reports need to be checked once in a while to
ensure no one is stealing your identity and damaging your credit.
#4 Security Freeze
Credit
reports with the credit bureaus can be frozen. By freezing credit reports,
credit issuers can be blocked from accessing credit files except when
permitted. This prevents thieves from opening up credit card and loan accounts. Security freeze goes a
step beyond fraud alert when reporting identity fraud. Security freeze is the
perfect way to deal with thieves who won't take no for an answer despite the
fraud alert. Non victims may also wish to activate security freeze for
prevention in case they fear they have been compromised.
#5 Reporting to the Authorities
This is a
critical step in identity fraud cases. Reporting identity fraud to the
authorities ensures that punitive action can be taken. Law enforcement
officials will investigate the crime and nab the culprit. Keeping the number of
the authorities is handy when showing it to creditors who require verification
of the case. For example, the FTC regulations identify the identity fraud
report to ensure that fraudulent use of your identity is averted.
Don't pay
some thief's bill. Stand up for your
rights and report identity fraud. The best part about reporting financial
identity fraud is that not only do you get your cash back, but the culprit is
taken to task. Life can throw a lot of challenges and identity fraud is one of
them. Take control and ensure that the thief pays for the crime, not you.
