Identity Theft Can Leave You With Collections, Late Payments, and Worse

IDENTITY THEFT IMPACTS YOUR CREDIT

 

Story:
A thief opened a credit card in a man’s name and, by changing the address, made sure the victim never received any of the bills. The thief never paid the bills, so the new debt showed up as a collection on the victim’s credit report. The victim didn’t check his credit report; thus, he didn’t know about the new account. Eventually, the credit card company sued the victim, resulting in a judgment he now owes.

Outcome:
New late payments, a new collection, and a new judgment on his credit report for the next 7 years.

 

Story:
A thief gained access to a State database and stole personal and employment information. The thief used a woman’s personal information to file false tax returns and claimed her tax refund. The thief also filed false unemployment claims. Not only was the victim out her tax refund, but 9 months later the State filed a tax lien against her because of the fraudulent unemployment claims.

Outcome:
Tax lien on her credit report.

HOW DOES A THIEF STEAL YOUR IDENTITY?

 

Bad employee sells co-worker and customer information on the Dark Web (The hacker’s marketplace).

 

A hacker obtains customer usernames and passwords, and sells them on the Dark Web (The hacker’s marketplace).

 

Thief steals mail and files false tax returns to claim tax refunds.

 

Thief steals a laptop from a car and gains millions of veterans’ social security numbers.

PROTECT YOUR IDENTITY

 

Credit monitoring services vary – most require a fee. They alert you when a new inquiry is made, a new account is opened, or a change has been made to your credit profile. Ideally, choose a monitoring service that monitors all 3 Credit Reporting Agencies.

 

Call any 1 of the 3 Credit Reporting Agencies (CRAs) to place a free, 90-day fraud alert on your credit profile. This alerts lenders to verify your identity before giving you credit. You may also place a security freeze ($10 per CRA) on your credit reports. This requires lenders to enter your PIN # in order to check your credit.

 

Identity thieves use phishing emails to steal personal and financial information. These emails appear legitimate – looking like they came from your creditor – but, they are fake. The email contains a fake link, taking the victim to a fake website that looks real. The unaware victim uses their credentials to login, and the thief captures their username and password. Instead of clicking email links, use a web browser to go to a website.

RESTORE YOUR IDENTITY

 

  1. Get your credit report to see any new accounts.
  2. Place a Fraud Alert or Security Freeze.
  3. Check with your creditors to review false charges or a change of address.
  4. File a police report.
  5. Visit www.IdentityTheft.gov for detailed information and steps you should take.

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