What to Do if Your Identity is Stolen

Earlier, I wrote about the pieces of information that identity thieves are most interested in. With the right information, someone can engage in identity fraud and even wreak havoc with your personal finances. Even if you take precautions, though, there is the possibility that your identity will still be stolen. If it is stolen, here are steps that the FTC recommends for attempting to limit the damage and recover your good name from identity theft:

1. Have a fraud alert placed on your credit reports. A fraud alert ensures that no one can open a new account in your name without additional identification. You should contact each of the three major credit bureaus for the fraud alert. You are entitled to free copies of your credit report when you are a victim of identity theft. Make sure you comb through the reports for other fraudulent accounts.
2. File an identity theft report. You need to head to your local police department and file a report. No, the perpetrator will probably not be caught. But you need to have evidence that you are taking proper measures. You should also file a report with the FTC. If the fraud took place using mail, file a report with a U.S. Postal Inspector. Make sure you get copies of any reports that you file.
3. Close affected accounts. Notify the proper people that your account has been compromised. Whether it is a bank account, credit card account or a fraudulent loan someone took out in your name, you need to talk to the bank and get the account closed. In order to reduce your liability, you will probably need copies of any reports you filed.

You should also check your credit report regularly to make sure fraudulent information has been removed. You can add notes to your credit report in the meantime, explaining that you are a victim of identity theft.

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