Identity theft is basically when another person illegally opens credit accounts, sometimes even bank loans, using vital information that was stolen somehow. This information includes your social security number, as well as other details that would enable them to verify their identity as your own.
Although there is identity theft safeguards in place to insure against this kind of fraud, banks and other credit institutions are driven to get your business. Sometimes these credit institutions will approve a new credit application before giving it a good, thorough investigation. These safeguards work, but not always. You’ll need to be proactive if you want to be alerted to any kind of identity theft going on.
In order to report identity theft, immediately contact the fraud departments of the 3 main credit bureaus: Equifax, Experian and Trans Union. Let them know that you’ve recently been the victim of identity theft so that they can put a fraud alert on your file. While you’re doing this, also order copies of your credit report so that you can be certain that no other credit accounts were opened under your identity.
You’ll also need to contact the creditors at which fraudulent accounts were opened. Ask to talk with the fraud department at every creditor. Be sure to follow-up with a letter, as the consumer protection procedure calls for resolving errors in writing.
Don’t forget to contact the local authorities so that you can report identity theft and file a report with them. Get a copy of the report so that you can provide proof to any creditors that request it.