Identity theft is becoming a huge issue in the United States. Each year 7-10% of the US Population are victims of ID Theft. That number continues to increase, especially since the COVID-19 pandemic as more consumers have begin ordering and shopping online. Also, many are surprised to know the source of the ID Theft may be from someone that is/was close to them, such as an ex spouse, a sibling, cousin, or even their child. In this article we are going to discuss the importance of credit monitoring, how to identify if you have been a victim of identity theft, and what you can do to prevent or stop this from happening. We will also discuss what you can do if you suspect you have been a victim.
Credit Monitoring Is Your First Line Of Defense Against Identity Theft
In order to know if you are a victim of identity theft, you must first know what is happening on your credit reports. You can accomplish this with credit monitoring services such as, Smart Credit, and MyScoreIQ. Services like these will give you real-time alerts when new items are added to your credit reports, or when a hard inquiry is made. These services I mentioned also provide identity theft insurance, dark web monitoring, or data broker removal services as part of your subscription.
There are other services out there like Credit Karma that are free (Don’t get me wrong on what I am about to say, because any credit monitoring is better than not monitoring your credit at all.) But free services come with a downfall. Typically those services only monitor one or two bureaus and not all 3. Monitoring all 3 credit bureaus is crucial to keep you informed on the status of your credit. The credit bureaus also have Annual Credit Report (ACR) as a way to monitor your credit, but ACR does not give you credit scores, no real time monitoring, and After April of 2022 you will only be able to pull these reports once per year. You can pull your reports from ACR once weekly, but that was only because of the COVID-19 Pandemic, unless the bureaus announce changes this will go back to an annual only service. The credit bureaus also offer credit monitoring individually on their websites.
What You Can Do If You Are A Victim Of Identity Theft
If you notice hard inquiries on your credit reports, or new accounts you did not authorize or open, your first step would be to contact each credit bureau to place a fraud alert and freeze on your credit reports to ensure no more damage can be done. To learn more about credit freezes and fraud alerts, check out this publication from the Federal Trade Commission (FTC).
Your next step is to seek a professional who can help you get your credit cleaned up. As a word of caution, in a previous article where we discuss avoiding credit repair scams, it is crucial to go to a reputable company with all the proper licenses. Also, if the person you are talking to mentions adding other items to the dispute that are your accounts, avoid them like the plague. Although you can dispute anything on your credit for free on your own, a credit service professional can assist you in creating a solid dispute that will hold up in a legal battle if the credit bureaus or data furnishers (creditors) fail to properly investigate or remove the accounts from your credit report. The credit service professional will also have connections with good consumer protection attorneys and refer you to them free of charge.
The Identity Theft Recovery Process
Being a victim of Identity Theft is not fun for sure, however, you can make a full recovery, and in some instances leave the situation better off than before you became a victim. When you see an attorney or a credit professional, you will likely be asked to file a police report to begin the process of finding the criminal responsible for creating your situation. The recovery process will begin by disputing any open accounts you did not open with the credit bureaus. Inquires of your credit that you did not authorize can also be included in the dispute process with the credit bureaus. The Fair Credit Reporting Act (FCRA) is a procedure driven law. In other words, any organization that maintains a consumer credit database, or submits information to any consumer credit database must have “reasonable procedures” in place to conduct a “reasonable reinvestigation” within 30 days of a consumer dispute. In that 30 day timeframe the bureaus and creditors must remove any “inaccurate and unverifiable” data from a consumer’s credit file.
Once a dispute identifying all unauthorized accounts, inquiries, and other information such as incorrect addresses and personal information has been sent to the credit bureaus, the credit bureaus must initiate their “reasonable procedures” to conduct a “reasonable reinvestigation” of your dispute. It is likely that all accounts, inquiries, and other information will be removed at first, since “inaccurate and unverifiable” information cannot be reported during their reinvestigation process. The credit bureaus will transmit your dispute through E-Oscar to the data furnishers to begin their “reasonable procedures and reinvestigation”. From there the furnishers will investigate the accounts to determine if you opened the account, or someone else. If the furnishers feel you actually opened the account, they will transmit back to the bureaus that the account was “verified”. If the furnishers believe that the account is a result of fraud, they will file their own legal actions and the process of catching your assailant will begin, and the furnishers will transmit back to the credit bureaus to remove the account permanently from your credit report.
How do i dispute accounts, inquiries, and other information that’s not mine?
It is highly recommended to consult with an experienced credit service professional, or a consumer protection attorney before you dispute fraudulent accounts, inquiries and information. You can dispute anything for any reason on your credit for free, but a
service professional or a consumer protection attorney can draft an effective dispute with the right verbiage to achieve the desired results. Also, a credit service professional can further assist you should the reinvestigation procedures fail, or no proper investigation was done.
However, should you choose to do this on your own, it is best to stick to the facts, as simple as possible, and do not pass threats or use legal jargon, such as citing case law, or quoting the law. Also, avoid online letter templates! The credit bureaus and data furnishers see thousands of these letters each day, and are less likely to take your dispute seriously. Ideally your dispute should list all accounts, inquiries, and personal information. You then state the issue with the accounts not being yours or opened by you, and your desired outcome. You also need to include a copy of your driver’s license, social security card, utility bill, and a police report. Send the letters via certified mail with return receipt to each credit bureau individually.
What happens dispute results come back verified, or i receive no results?
Chances are, if the disputed accounts come back verified there was a breakdown in the credit bureau or data furnishers reinvestigation procedures.
If you receive no results, that would suggest that no reinvestigation was done. Remember, that the credit bureaus and data furnishers have a 30 day timeframe to conduct a “reasonable reinvestigation”. If you have not received your results within 45 days (allowing for mail time), that would suggest you did not receive the reinvestigation you are entitled to. Both of these instances are MAJOR violations of you right to a fair and accurate credit report under the Fair Credit Reporting Act (FCRA). You could be entitled to compensation. If you are working with a credit service professional chances are, you will be referred to a highly qualified consumer protection attorney for possible litigation. Identity theft is taken very seriously in our judicial system. If you are reading this article and need assistance in any stage of this process, just give us a call and schedule a free consultation today.
