Identity Thieves are Lurking

Identity theft is one of the fastest growing crimes in the United States in the last 5 years. According to the Federal Trade Commission, over 27 million Americans were victims of identity fraud and the FBI says identity theft is growing at a rate of 500,000 to 700,000 new cases every year.

It’s crucial that people know exactly what to do if they believe they might be a victim of identity theft in order to take action fast to prevent the damage that this crime can cause. What might cause you to think you are a victim of identity theft?

According to the results of the National Crime Victimization Survey conducted by the Bureau of Justice they found this:

3/10 people that were victims of identity theft discovered the problem from unknown charges on credit cards and missing money from bank account and 25% realized they were victims when they were contacted by a credit bureau regarding financing application they never applied for. Another very common way people find out they are victims of identity theft when they are denied credit. From the FBI most people take 12 months to notice they have become a victim of identity theft. A lot of damage can be done to your name in a year!

On average it will take the average person 175 hours of your time to clear their name and will cost roughly $1500. The losses typically go deeper due to lost wages for time off work, on average lost wages amount to $1200 and some reports indicate that 20% of people that are victims of identity theft lose over $5000.
The tolls goes further than monetary loss, the emotional impact of victims is something that can not be measured in a dollar amount. Some victims of identity theft have said that they would have rather had a physical crime, such as mugging or robbery, occur than have the emotional scares identity theft leaves.

It is crucial that consumer be proactive on keeping tabs on their identity by checking their credit report on a regular basis or enroll in an identity theft prevention program such as that offered by LifeLock. Nobody cares more about your financial situation than you do so make sure you take precautions. If you haven’t made monitoring you identity part of your everyday life then it’s time to take action. For those readers that think they might be a victim of identity theft you will need to know the actions you need to take to curb the damage that identity theft causes.

Worksheet to Protect Yourself from Identity Theft

If you think that you are a victim of identity theft here are the steps you must take to ensure the damage is minimized and the problem is taken care.

1. Contact the major credit bureaus

Contacting the credit bureaus is necessary so they know that your identity has been stolen and they can ensure that no credit or loans are issued in your name.

Here are the numbers to contact the credit bureaus
Equifax 1-800-525-6285
Experian 1-888-397-3742
TransUnion 1-800-680-7289

2. Contact your lenders and creditors

Call every credit card company, department store and bank that you have some form of credit with. Identity thieves quite often redirect the billing address and make charges on your existing lines of credit. It’s important that all your current lenders are aware and they can take action to prevent fraudulent purchases on your credit.

3. File a police report

It might seem counter-intuitive to file a police report at this point. Most people are tempted to call the police first in cases of identity theft but that’s a mistake. Why is it a mistake to phone the police first? Identity thieves work fast so your first course of action needs to be stopping the crime from absolutely destroying your life. By phone the police first you are spending valuable time in filing a report. You must stop the bleeding before notifying the authorities about the incident. Once you have contact the credit bureaus and your lenders, you have take the steps necessary to ensure that fraudulent loans and lines of credit are being registered in your name.

4. File a report with the FTC

Now you will want to bring this incident to the attention of the Federal Trade Commission, you can file a report with the FTC by visiting their website and using the identity theft complaint form on their site. The form number is OMB #3084-0047

5. Issue a stop payment on checks

In case any fraudulent checks have been created using your bank account information you will need to issues a stop payment on all checks issued in your name. Here are numbers to call to ensure there is a stop payment placed on your checks:

SCAN 1-800-262-7771
TeleCheck 1-800-710-9898
Certegy 1-800-437-5120
Global Payments 1-800-766-2748

While these steps are very simple to follow and act upon if you think you are a victim, it’s important to remember these steps. Remember that identity thieves are everywhere and it’s critical that you know what to do should you fall victim to this horrible crime. I recommend that you print this sheet and keep with your telephone book or somewhere near your phone so the numbers are readily available. Remember that every second is important when stopping an identity thief from acquiring credit in your name.