Identity Theft Facts: How to Minimize the Damage

There has never been a better time than right now to become familiar with identity theft facts.  This article covers 5 important identity theft facts you should know in order to minimize the damage should your personal information be stolen.


Identity Theft Facts: 5 Tips to Minimize the Damage:
1.) Photocopy the contents of your entire wallet. Once your wallet or personal information is stolen, time becomes critically important. The first thing you need to do is cancel all of your credit and bank cards. But, if your wallet was taken today, would you know exactly what numbers to call and which accounts to cancel?

Most people wouldn’t.

So make sure you follow this crucial step before you head out on your next shopping excursion or trip to the grocery store. Copy both sides of your driver’s license, credit/debit cards, and other forms of identification.  Keep this document in a safe place so that you have all of the appropriate account information and toll-free numbers available should you ever need to cancel your accounts in a hurry. Plus, it will verify exactly what you carrying if your wallet is ever lost or stolen.

2.) File a police report in the jurisdiction where the theft took place. This will establish your diligence to credit providers and will come in handy if an investigation ever takes place.  It will also serve as the beginning of the critical paper trail you will need to create.

3.) Call all 3 national reporting agencies – Equifax, Experian, and TransUnion. Report what happened and place a credit freeze on your account.  This alert will notify companies  checking into your credit that your information has been stolen and that they need to contact you by phone to authorize new credit.  Request in writing that the alert remain in effect for the entire 7 years currently authorized by law.

4.) Document everything. If your identity is ever stolen, it is YOUR responsibility to rectify the situation.  Purchase a binder and begin documenting every phone call and every bit of correspondence you receive.   From the very beginning, make sure you keep detailed records of when you called, who you spoke to, and what was said.

Whenever possible, write to any concerned parties and explain your circumstances.   Send these letters via registered mail.

5.)  Continue to monitor your credit. Make it a habit to look over your entire credit card bill and bank statements each month and report any suspicious activity immediately.

Also, there are a number of services currently availabe that take a proactive approach to protecting your identity, such as LifeLock and TrustedID.    For a fee, these companies will agressively monitor your credit and offer up to a million dollars in insurance should your identity be compromised while enrolled in their programs.

Incidentally, it is a good idea to do this last step on an on-going basis even if you are never the victim of a documented  theft.   In this age of ever-increasing technology, your personal information is readily available to savvy criminals who know where to look.  However, if you remain vigilant, you will be better prepared to stop them in their tracks.