Fraud Author Tracy Coenen

Each case of identity theft is different, and the lasting effects of this fraud depend upon the type of theft, whether or not your information was sold or passed on, and whether the thief is caught. While the direct monetary losses are often limited by credit card issuers, the effort to clean up the mess left by a thief can be monumental.Upon discovering that your identity has been stolen, bank accounts and credit card accounts should be closed immediately. Replacement accounts should be opened, with secure passwords attached to them. Don’t cancel credit card accounts all together. Opening brand new accounts can be difficult after an identity theft, so it is wise to keep your accounts, but have the credit card companies change the account numbers.

Those who have had their identities compromised can register a fraud alert with the three credit reporting agencies. This may help stop credit accounts from being opened in your name, and it might not. Creditors are not required to run credit checks before opening accounts. If they do check your credit, they will be notified of the alert, and should verify identity before issuing credit. But as you can see, this is not a failsafe measure, since not all creditors run credit checks.

If government-issued identification is stolen, such as a driver’s license, the victim should contact the agency to cancel the identification and issue a replacement. Many agencies will also flag your record so that no one else can get an identification document in your name.

Police reports are often necessary. While this may be a more frustrating part of the process, it may be necessary to help rectify fraudulent accounts in your name. It is also a good idea to file a complaint with the FTC.