Untangling the Mess of Stolen Identity

You open and pay bills on time, you balance checkbook statements when they arrive, and you keep spending within earning amounts. You question discrepancies on statements. Thanks to your diligence, your credit report is clean. Or is it?

Not until a bill collector calls regarding a debt you didn't make do you realize that despite your efforts, someone has managed to invade your financial privacy. You are a victim of identity theft. Even if you have taken precautions such as shredding health and financial documents, securing your social security card, placing outgoing mail in post office collection boxes, practicing safe computing habits, and limiting disclosure of identification and financial information, you are still vulnerable. Perhaps your insurance ID card carries a variation of your social security number or someone has accessed your personnel files at work. Act quickly to protect your name from further damage.

Place fraud alerts with the three credit bureaus: Call their toll-free numbers. The bureaus will send copies of your credit reports. Put in writing a victim's statement to be added to your report and ask that alerts be extended to seven years. Request that new credit not be extended without your approval.

Read your credit reports: If existing accounts have been accessed fraudulently, close accounts and open new ones with new personal identification numbers and passwords. Note any credit grantors with whom fraudulent accounts have been opened.

File a complaint with the Federal Trade Commission (FTC): Download the form from their Web site, linked below.

Contact creditors: Talk with their security departments. Fill out the company's fraud dispute forms or send a copy of your FTC complaint. Ask credit grantors to provide you with copies of any applications and transaction records that show the fraudulent activities.

Reporting a credit card lost before it is used means you owe nothing. Unauthorized credit card transactions cost no more than $50 a card when you contact the company in writing within 60 days of the card bill mailing.

Owe nothing also if you report a missing ATM or debit card before used. Pay no more than $50 when you report within two business days of discovering the problem. If you wait up to 60 days, you are liable for up to $500. Waiting longer may cost you your whole loss.

Most states have laws that protect you from losses because of forged checks.

File a report with local police or police in the community where theft occurred: Keep a copy to share with affected companies.

Contact check verification companies: Ask that retailers who use their services not accept your checks.

Document, document, document: Track phone contacts, department names, and dates. See FTC Web site for form. Record time spent. Store records together in a safe location.

Follow-up
Repairing the damage from identity theft takes time, but with the same diligence you used to create good credit, you can minimize the damage. Stay vigilant and reduce future risks.