How can I find out if someone is using my identity? What to know about identity theft
The sprawling allegations of identity theft tied to the Las Vegas woman are emblematic of the scourge facing Americans and represent an extreme for their boldness, said John Buzzard, a financial fraud analyst at Javelin Strategy and Research.
Last year, he estimated identity theft accounted for more than $52 billion in estimated financial losses and impacted about 42 million U.S. adults. Long plays on a single stolen identity are rare, but the tactics used in the Las Vegas case – fraudulently opening new accounts – are not. That type of activity was up 109% year-over-year in 2021, according to the group’s latest report.
“Identity is now monetized and aggregated from an information standpoint,” Buzzard said. “This is their career as criminals, making millions of dollars either wrestling complete sets of identities or victimizing those in proximity.”
Buzzard said each piece of the “financial food chain” has the responsibility to prevent and root out the fraud.
Lenders, real estate agencies and those issuing credit should be utilizing “identity proofing” systems that authenticate whether a passport or drivers’ license is real. It asks for accompanying information from applicants, like a selfie that merges with other existing consumer data to flag suspicious accounts.
Law enforcement has a role to play, but it is facing the tsunami with limited resources, especially in small jurisdictions. The Federal Trade Commission is more equipped to flag fraud through its consumer reports – but any federal agency is unlikely to get involved for fraud amounting to less than about $100,000, Buzzard said.
Credit agencies, too, have the responsibility to maintain accurate information and rating for consumers.
What are three warning signs your identity has been stolen?
Unfamiliar bills and other mail arrives or gets forwarded to you containing your name and other personal information.
You start receiving bill collection calls or notices related to unknown bills.
You receive a sudden uptick in SMS text or email messages confirming account-based changes you didn’t initiate such as a new address or mobile phone number.
How do you check whether your identity has been stolen?
Buzzard suggests people with no evidence of identity fraud still take advantage of their one annual credit review, which is free from each bureau: Equifax, Experian and TransUnion.
If you’ve received an indication that an account has been tampered with or credit has been extended in your name, you should contact that company or financial partner directly and promptly.
“There is no perfect way to validate that your identity has been stolen until you start to see material account-based charges or financial losses,” Buzzard said.
Consumers can also purchase identity protection services that provide preemptive warnings when unusual activity starts to occur.
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How do you put an alert on your credit?
You can place a fraud alert, not to be confused with a credit freeze, on your credit bureau file electronically. Buzzard recommends providing bureaus with a copy of the freeze on paper, signed and mailed.
How do you put an alert on your Social Security Number?
Consumers can either visit their local Social Security office in person or go online to flag a Social Security Number for fraud.
How can you avoid getting your identity stolen?
Freeze your credit. Buzzard recommends everyone, no matter the situation, keep their credit in a frozen state with each bureau. When it’s needed, turn it back on. There’s no downside.
Consider identity theft insurance. Many insurers offer this add-on that can cover lost wages from an employer, attorney fees, loan reapplication fees and monitoring services. Unfortunately, Buzzard said most customers enroll after they’ve experienced fraud.
Keep your financial house in order. Remember that when you get a new phone number or move addresses, everyone in your financial life needs to know. Consider threshold alerts on your financial accounts to flag unusual purchases and don’t share logins or credit cards with third parties, like nannies, who can use a prepaid debit card instead.
Do not send money or communicate with people you don’t know. Buzzard said scammers only need you to have one bad day and act without thinking.
What should you do if your identity is stolen?
Freeze your credit. This should be the first step at the sign of a scam so you can potentially limit the damage going forward.
File a police report. Some financial institutions require this step to gain access to other coverage. Do this at your local law enforcement agency if they’ll accept it.
Write paper letters to any service-providers that wrongly opened accounts in your name. Buzzard suggests writing concise, drama-free letters that provide the details of the fraud. Make it clear that you’ve been a victim, attach the police report and follow up. The goal is to get each account closed and work toward expungement so you’re no longer liable for the money. Remember that each lender and credit agency needs to get a letter.
Be patient and tenacious. “It’s your problem to fix, you have to advocate for yourself,” Buzzard said, and despite being frustrating, the best results go to those who are concise and follow-up with each piece of the financial system until the problem is resolved.
Get an attorney. If things get really bad, some consumers consider filing for bankruptcy or attempting to obtain a new social security number entirely, but Buzzard said a $1,200 bankruptcy filing fee would probably be better used to see a good attorney.
Nick Penzenstadler is a reporter on the USA TODAY investigations team. Contact him at npenz@usatoday.com or @npenzenstadler, or on Signal at (720) 507-5273.
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This article originally appeared on USA TODAY: What should you do if you are the victim of identity theft?
