Identity Theft FAQs
Identity Theft Frequently Asked Questions
Everyone has questions about identity theft. Here, we compile and summarize some of the top FAQs about this fast-growing crime.
How can I tell if my identity has been stolen?
Rule number one: beware of the signs. Most ID thefts are discovered when victims see unexpected charges, withdrawals or other transactions on banking or credit card statements. But there are other signs, too—such as being denied credit when you know your finances are in good standing, or if you're approved for credit you didn't even apply for. Also, if you're unexpectedly contacted by creditors or collectors about old accounts (or those of which you're not even aware), act right away to see if your identity has been compromised.
What can a thief do with my personal information?
Plenty. With your personal information, an ID thief can easily cash a check, get a loan, open credit accounts (and max them out), rent an apartment, buy a car, get a new cell phone and—even worse—commit a crime in your name!
Will I be held responsible if a thief uses my identity to commit a crime?
Monetarily, if a thief uses your credit card, you'll likely be responsible for only $50 or less—but you'll spend months hassling with all the credit agencies, financial institutions and police departments trying to clear your good name. In more extreme cases, you may be even be detained by police and have trouble convincing them you're not the person they really want.
What should I do if my identity is stolen?
If you're a victim of ID theft, there are generally four steps you need to work through:
- Step 1—Contact institutions giving out unauthorized services
Notify all the companies that issued credit or unauthorized services to the ID thieves. They usually have dedicated fraud departments that can help you. Consider freezing the fraudulent accounts. - Step 2—Notify Credit Reporting Agencies
Contact the "big three" credit reporting agencies (Experian, Equifax, TransUnion), requesting a copy of your credit report. Also ask that a fraud alert be placed on your credit account. - Step 3—Notify Law Enforcement
File a report with your local police department. Enough said. - Step 4—Notify Issuers of Compromised Documents
Depending on the type of fraud and documents falsified, you may need to contact the U.S. Postal Inspector, Social Security Administration, State Department of Motor Vehicles or even U.S. State Department.
What is the cost of identity theft?
It's no secret that ID theft is a fast-growing crime. In 2007, 10 million Americans were victims of an identity theft crime, with a total cost estimated at $57 billion. Individually, average victims can expect to see over $6,300 illegally charged to their name—with an average cost between $400 and $2,000.
What is a fraud alert?
A fraud alert is placed in your credit file to alert creditors to the fact that you have a good-faith suspicion that you have been—or are about to become—a victim of fraud or a related crime, such as ID theft. It requires creditors to take reasonable measures to verify your identity—such as calling you directly.
To learn more about how to protect your identity, visit our Identity Theft Prevention page.