If You Believe You are a Victim of Fraud

If you see a charge on your credit card that you did not make, it may just be an error of a miskeyed number. These are easily fixed by calling the credit card company. But if there is more than one charge, or your credit card was stolen, or you see a new credit account on your credit report that you did not apply for, then you are probably a victim of fraud. Follow these steps if you believe that you are a victim of fraud.

1. Add a 90-day security alert to your credit report. There is no cost for this. The alerts allow you to include a telephone number so that businesses can call you when an application is submitted using your identity.

2. Contact each creditor of your accounts with fraudulent activity. If it is a new account that you didn’t establish, be sure to tell them that the account is fraudulent.

3. Document all contacts. Make notes of everyone that you speak to and the date that you speak to them. Get their names, department names, and phone extensions.

4. Understand each creditor process because they can be different. Make sure you understand exactly what is expected from you, and then ask what you can expect from them.

5. At the conclusion of the investigation, ask the creditor for a document that states that you are not responsible for the debt.

6. If you are a fraud victim, add a 7-year victim statement to your credit report. The statement tells lenders to take extra precautions when considering an application because there is an increased risk that fraud is being perpetrated. The statement can delay you being able to get credit, but is a worthy inconveniece to protect your credit.

7. Follow up. Make sure all required documentation was received by the creditor and/or credit reporting agency. It is always a good idea to place a follow-up call or send a letter for confirmation.

8. Review reports regularly. It would be best to subscribe to a service like FreeCreditReport.com for monitoring your credit report or Life Lock for more identity protection. If you do not subscribe to a monitoring service, obtain another credit report several months after you believe everything is cleared up.

If a new fraudulent account is discovered, you know how to handle it. Be sure to check your credit report again in six months and a year later.

Keep all your notes and correspondence in an accessible file in case they are needed in the future.