A Guide to Recovering From Identity Theft and Credit Card Fraud

As consumers rely more and more on their credit cards and the internet to make purchases, they are becoming increasingly susceptible to credit card fraud and identity theft. In 2020 alone, the FTC received 4.8 million identity theft and fraud reports.

If you experience fraud or theft, your credit score could suffer, you may lose money and the thief could file a fraudulent tax return — among many other negative implications. However, by taking the right steps, you can prevent fraud from happening and identify it immediately if someone tries to steal your information. You can also mitigate the impact on your finances, credit cards and credit score if identity theft does occur.

It’s crucial that consumers know what preventative measures they can take to keep track of their accounts and the actions they need to take once they learn their identity has been compromised. After all, even if you do everything right, a thief could outsmart the system and steal your information. But the sooner you act and catch the fraud, the less potential damage there could be to your identity and credit.

Sometimes, even when you take all the right steps, identity theft and credit card fraud still happen. But if you know how to spot the warning signs, such as fraudulent charges on your card or getting denied for a credit card, you can act swiftly and prevent further damage. When you think something is awry, here’s what to do.

It is entirely possible to recover from credit card fraud and identity theft, especially if you catch it immediately. But you have to address it quickly and get in touch with the right providers to take corrective measures. Here’s how to handle identity theft and credit card fraud if you are a victim.

First, you’ll have to figure out what kind of credit card fraud and identity theft occurred and the extent of the damages. Look at your credit card and bank statements as well as any other relevant documents (such as medical bills or your tax returns). Also, run a credit report to look at the big picture and see if there has been suspicious activity with any of your credit cards, if your score keeps going down, or if a new account has been opened in your name.

Contact your service provider as soon as you see a fraudulent charge on a bank or credit card statement. For instance, if you have a debit card with Bank of America, and someone used it to pay for goods, then call the bank right away. If you have a credit card, then contact your credit card provider ASAP. You should also alert one of the three major credit bureaus — Experian, TransUnion or Equifax — if the fraud occurred on a credit card.

A fraud alert is a red flag to a lender or credit card provider that you are a victim of identity theft or credit card fraud. They are free, and you can place one with one of the major credit bureaus to stop fraud from happening again. If someone applies for a credit card or loan, the lender or provider will contact you before automatically approving an application. It will stay on your profile for at least a year, but if you fill out a Federal Trade Commission Identity Theft Report or a police report, you could place an extended seven-year fraud alert on your file.

By placing a freeze on your credit, creditors won’t be able to access your credit report prior to opening a new account. They will likely not approve applications that are fraudulent. You can put a freeze on your file or lift it for free for you or your children who are 16 or younger. All you have to do is contact the three credit reporting bureaus to do this. Check out the Experian Freeze Center, Equifax Credit Report Services and TransUnion Credit Freezes websites for more information.

If any businesses were involved, such as your internet provider or gas company, then let them know about the credit card fraud and identity theft. Ask them to alert you about any new charges and reverse certain charges if you didn’t make them.

If you see that there has been identity theft on your credit report, then contact one of the major credit reporting bureaus, submit an identity theft report to the FTC and file a police report with your local law enforcement agency. It’s essential to take these steps so you can get an extended fraud alert placed on your report and prevent a thief from opening new credit cards and loans. If you don’t take this step, you will still be vulnerable to theft, and your credit score could drop. This means that it’ll be harder for you to access loans and credit in the future.

Once you file an identity theft report with the FTC on its website, you will receive your report as well as a recovery plan. All you need to do is go to IdentityTheft.gov and provide the agency with all the critical details. It will walk you through every recovery step, update your plan as needed and track your progress.

By reporting identity theft to the police, you can get an extended fraud alert placed on your file for seven years. Plus, you can alert the police if someone has been breaking the law in your area. For instance, perhaps you caught a neighbor stealing your mail on tape or someone in your building stealing your garbage. The police could follow up and put a stop to the crimes.

A thief may have stolen your information because they guessed your password. It’s important to go through all your logins and make sure each password is unique and hard to guess. (Hint: Don’t use your name, date of birth or other obvious information in your password.) You can use a Strong Password Generator tool to come up with a strong password and protect your information.

If your Social Security card, license, passport, credit card or any other documentation got stolen, then you need to replace it by contacting the right agency. For instance, you could get in touch with the DMV, let them know what happened and get a replacement license made as soon as possible. Your credit card provider should be able to cancel your credit card and expedite a new one to you as well.

Whether or not you’ve been a victim of identity fraud or credit card theft, you can take certain steps to stop it from happening in the future. Taking these steps helps ensure that your information is as protected as possible.

There are other types of fraud that could occur aside from credit card fraud and identity theft. Being aware of them will help keep you protected now and in the future. Here are all of the types of fraud to take note of.

With these resources, you can learn more about protecting yourself from identity theft and credit card fraud and what to do should it occur. Then, you can be fully equipped to handle any situation where your personal information could be or has been compromised.

• Experian: This is one of the three credit reporting bureaus where you can check your credit report, monitor your score, and sign up for identity theft services.
• Equifax: This is another one of the three credit reporting bureaus where you can gain access to your report and look over it for any fraudulent purchases or suspicious activity.
• TransUnion: This is the final credit reporting bureau you can use to track your credit report, set up fraud alerts, freeze your credit, and more.
• Federal Trade Commission: On the FTC website, you can file an Identity Theft Report and learn more about how to report fraud and get your free credit report. It’s a one-stop-shop free resource for consumers.
• LifeLock: With LifeLock by Norton, you can sign up for identity theft protection and be rest assured that your identity will be as protected as possible from thieves.