Identity Theft – The Guilty Victim

So, what are the steps to take if you are an identity theft victim? First of all, you have to take this seriously. Although you might consider yourself a victim of a crime, you are also considered a guilty victim until you prove that you had nothing to do with the theft. Remember, in an identity theft, someone is going to lose money. It wouldn’t be too difficult for an individual to stage an identity theft. In the eyes of a merchant, you could be the one directly benefiting from those fraudulent charges or withdrawals while claiming to be a victim of identity theft.

As the victim, you have three main objectives:

1) Prove that you are an identity theft victim
2) Get released from any liability
3) Make sure that all information regarding the theft is permanently removed from your credit file

You really have to focus on these three items. It is crucial that all three objectives are achieved. Most identity theft victims don’t achieve the first objective because they don’t go through all of the necessary steps. Most identity theft victims feel that they are protected by the law and are entitled certain protection. It is assumed that once the crime is reported they are covered.

So here is the order of the important steps for you to take.

1) Place an initial fraud alert on your credit file. This is easy to do and can be handled with a quick phone call. You are basically saying that fraud has been committed and you are in the process of gathering facts and filing a police report. In the meantime, you want to be alerted if your credit file is being accessed without your authorization. Remember that a fraud alert is temporary and not failsafe. You want either the extended alert or preferably (if available) the security freeze implemented as soon as possible.

2) If an account has been opened or the theft involves your credit card or bank, notify the appropriate company immediately to close accounts. Every company has a specific department that handles fraud. Make sure that you are contacting the right one.

3) File a report with your local police department. This is extremely important and gives evidence that you are serious about getting your name cleared from this situation. It is also required for almost every step that follows.

4) Create your Identity Theft Report. This is your “case” that proves your innocence. Remember the victim/guilty irony.

5) Turn your initial alert into a credit freeze with the three credit reporting agencies. This is the highest protection that you can have on your credit files.

6) Send the Identity Theft Report to the three credit reporting agencies and request that the information be blocked from your credit file.

7) Send the Identity Theft Report to the merchant that holds the fraudulent account as a follow up to your initial call. This will allow for them to confirm that you were indeed a victim. This should provide all of the information that is needed to conduct the identity theft claim. You can also request the application and any transaction records used in setting up the fraudulent account.

8) Get a closure letter from the merchant that releases you from liability. This is extremely important and something most people neglect to do. Remember the closure principle.

9) Make sure that all information about the fraudulent account is removed from your credit files at all three credit reporting agencies.

10) Keep a close eye on your credit files and make sure that nothing reappears concerning the identity theft on your account.

Keep a paper trail and, always send all correspondence certified mail return receipt requested.

Copyright © 2008 Prudent Money and Bob Brooks. All rights reserved.