As our lives become more digital and identity thieves grow more savvy, chances are you know someone who has been a victim of identity theft – or maybe you’ve even experienced it yourself. In fact, according to the Bureau of Justice Statistics, 22% of Americans have faced a form of identity theft at some point in their life.
Identity theft happens when someone uses or accesses another person’s personal information, generally a name, Social Security number or credit card number, to commit fraud or other crimes. In most situations the victim doesn’t learn about the fraudulent activities until they get calls from debt collectors or are applying for a loan.
Jeff, an Identity Theft Case Specialist at ARAG, helps members who have fallen prey to identity theft:
- Learn about what identity theft is
- Provide information about steps members can take to help prevent identity theft
- Provide resources to minimize and recover from identity theft
- Explain relevant plan benefits
- Provide an identity theft prevention kit
- Provide an identity theft victim action kit
- Monitor and follow up on the situation
Identity Theft Specialists also have an Identity Theft Affidavit available to help the member report their identity theft to necessary parties. These Identity Theft Specialists help members determine appropriate steps to begin recovery
“One of our members found out that a $250,000 loan had been taken in his name,” said Jeff. “When fraud involves an amount that high, it’s extra challenging to clear the record.”
“While credit card fraud is the most common, people tend to forget that other types of fraud are also part of identity theft,” said Jeff. For example, loan or lease fraud – using someone’s identity to gain a loan or lease – is among the top three ways identity theft is committed, according to the FTC’s Consumer Sentinel Network Data Book.
Employment or tax-related fraud is also common. Jeff worked with a member who learned six different people were using his Social Security number to apply for a work permit. “That was a complex case because both the IRS and FTC were involved. Because the person was retiring, he needed to determine his earnings for Social Security. It was difficult to sort through and more difficult to find his W2s from all those years.”
The “surprise factor”
For many people, the financial toll of identity theft can be resolved – with a little legwork – if it’s caught early. Once a fraudulent charge is discovered and disputed, it generally can be cleared from the credit report within 60 to 90 days. An important part of Jeff’s job is helping people deal with the emotional toll and “surprise factor.” For one member, this happened when being pulled over for a minor speeding infraction ended in an arrest and jail time. Someone else had been using his driver’s license and multiple warrants were out for crimes the thief committed under that identity.
What to do
If you’re a victim of identity theft, you can:
- Place a fraud alert on your credit report for free for seven years. A fraud alert ensures that you’ll be personally notified any time someone tries to open a credit account with your Social Security number.
- Order your credit report every 90 days to check for unauthorized activity. All consumers can order a free credit report every year from AnnualCreditReport.com. (Note: this is the only authorized source for the free annual credit report that’s yours by law).
- Notify your financial institution. Keep detailed records of dates, times and who you talk to when you contact them.
- File a police report. According to Iowa Legal Aid, you should contact your local authority using their non-emergency phone number, then request a copy of your police report. You can then provide the police report to creditors or businesses that were impacted.
Lessons learned the hard way
Jeff warns that once your identity has been stolen, it’s essential to stay vigilant and continue to check your credit report every three months. The fraudulent charges may be removed, but the thief may simply put aside your information temporarily and then reuse it once they see the account is no longer monitored.
“It’s not enough to monitor your credit report. We all need to monitor our monthly credit statements as well,” said Jeff. “Identity thieves can start by making just small purchases on an existing account. If those slip by unnoticed, then they’ll move on to making larger purchases.”