Identity fraud is usually what happens after someone has stolen your identity. They will pretend to be you and apply for credit in your name.
It sounds harsh and is to a degree. But it’s also something that’s relatively straightforward to deal with.
Prevention is always better than cure of course, but in the event you’re a victim of identity fraud, there are a few things you need to do.
5 things you need to do in fact.
Being a victim of identity fraud
Unless you regularly check your credit report and notice something amiss, the first you’ll know about being a victim of identity fraud will be a letter from a lender.
The letter will probably say you missed a payment and include some kind of demand.
This is often the first time anyone hears they have been a victim of identity theft.
What do you do next?
1. Check your credit report
The first thing I recommend doing it checking your credit report. Contact Experian, Equifax and TransUnion and request a copy.
Check each report carefully and note any credit applications you didn’t make.
If you see other credit applications you didn’t make, contact each credit bureau and explain the situation. Ask them to put a notice on your credit report that stops any further credit applications being approved.
You can also ask the bureaus to add a Notice of Correction password to your credit report. This is an extra step that means a lender must double check with you if they receive a credit application.
You provide the correct password and you can continue the credit application.
This is usually when you have been burgled or lost other documents that could be used in identity fraud.
2. Contact the respective lenders
Your next step is to contact the lender who contacted you and any others you find in your credit report.
Explain the situation, be prepared to prove who you are and where you live. The lender’s fraud team will likely be in contact and work with you to resolve the situation.
3. Contact Action Fraud
Action Fraud won’t be able to do much to solve the crime or help you out but they provide stats to the government to help direct future policy.
I would recommend reporting the crime so they can monitor the situation and use it in crime reporting.
4. Notify your other lenders or banks
It’s usually a good idea to also notify your bank, credit card company and anyone else you have credit with.
Even if they haven’t seen any unauthorised activity, that doesn’t mean they won’t. Prevention is key here and while the note on your credit reports can help, nothing is guaranteed.
5. Work with everyone involved to clean the mess up
The key to recovering from identity fraud is to be as cooperative as possible with the organisations involved.
There will likely be a lot of forms, a lot of emails and phone calls and a lot to sort out.
You need to make sure you’re not left out of pocket or that your credit doesn’t suffer.
The lender must make sure the situation is real, it’s a real crime and that they can adequately address the situation.
The only way everyone gets what they want is to work together. It will be long, boring and occasionally frustrating, but it’s in your interest to resolve it.
Identity fraud
Identity fraud is a tough situation and not something anyone wants to happen. But it does.
The important thing is to know what to do and how to handle it.
Fortunately, credit bureaus, banks, credit card companies and other lenders are well used to it and have processes in place to help.
As long as you cooperate and perform any required tasks, everything should be sorted out in the end.
It may take time and a lot of effort, but it will all be sorted out.
