Credit Rating Beware: Identity Theft at All-Time High

A Federal Trade Commission report released this month revealed that it received nearly 370,000 reports of identity theft in 2012, nearly 90,000 more than in 2011. Identity theft was the number one complaint reported to the Federal Trade Commission, with debt collection issues coming in at a distant second.  This was the highest total ever reported by the agency.
Identity theft not only hurts victims regarding their immediate finances, but it also has the potential to ruin one’s credit rating.  It seems there are endless ways identity thieves are stealing and using information.  This is ever the more reason to be vigilant about your credit and prepared for what may, unfortunately, be the inevitable—having your identity stolen.
Controlling Damage from Identity Theft
Make sure you check your credit report and score regularly. Being vigilant about your credit can help you catch problems before they create more serious damage. Check to see if your insurance provider, bank, credit card provider, etc. provides an identity theft program to help protect you or minimize damage in case you become a victim. If you suspect there may be some problem with your credit report, consider placing a fraud alert on your credit reporting with the reporting agencies.
Handling Identity Theft
If you do find fraudulent activity, the first thing you need to do is alert any of your creditors that are involved. This will help contain the damage. Next, report the crime to the police.  This cannot hurt you, and it very well may help you down the line. After contacting the police, contact the FTC. While the FTC does not resolve individual complaints, your report may help the FTC spot a pattern of violations requiring law enforcement action. Once you have reported the fraudulent activity to the above groups, go through your credit reports with a fine-toothed comb. You can retrieve them online from all three credit reporting agencies. Look for any suspicious personal information or any credit event that you do not recognize.
Do not forget to keep track of all of your actions. You want to be able to review the entire process, from when you discovered the issue until you hopefully find some resolution. A clear and accurate record of everything you do, who you talk to, what is said, and when it occurred will not only keep you on top of things, but it may be useful in any possible lawsuit in the future.
Your Credit Report Following Identity Theft

• Following identity theft, some of your rights include the right to:
• Block fraudulent information from your credit report,
• Dispute fraudulent or inaccurate information on your credit report,
• Stop creditors and debt collectors from reporting fraudulent accounts,
• Get copies of documents related to the theft of your identity, and
• Stop a debt collector from contacting you.

Ideally, your credit report will eventually reflect only accurate information. Unfortunately, that may not occur. Inaccurate information can not only cause you to be denied credit, refused insurance, and denied employment, but it can also lead to higher fees and interest rates for credit that you do receive. It is your right to have an accurate credit report and to be fairly evaluated based on that information. If you believe your rights have been infringed, contact an experienced attorney.
See Related Blog Posts:
Reports by the FTC and by 60 Minutes Spotlight Deficiencies in Credit Reporting
Report Says 1 in 5 Consumers Know Their Credit Score
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