Identity theft is on the rise during the
COVID-19 pandemic, according to IDentity
USA 1 , a provider of identity monitoring,
protection and recovery. Experts predict
1 in 4 people in the United States will be
victims of this growing crime trend as more
people work from home.
Cyber criminals hope to use coronavirusrelated
anxiety to take advantage of
unsuspecting individuals.
For those already facing financial hardship, having your identity
stolen can be even more disheartening. Telltale signs of a stolen
identity include:
• Debt collectors calling about debts that aren’t yours
• Medical providers billing for services you didn’t use
• Unexplained withdrawals from your bank account
• Receiving bills for accounts you know nothing about
• Being denied credit and not understanding why
If you suspect that you’re a victim of identity theft, there are 10
things you should do immediately:
#1: Lock down the problem account. Unauthorized charges
on a financial account are often the first red flag that identity theft
might have occurred. You might be contacted by your bank about
unusual charges or see them on your statement. In that case, the first
step is to contact the financial institution, dispute the charges, and
ask to lock down or close the account.
#2: Scan credit card and bank statements for other
unauthorized charges. Review all your accounts and old
statements for charges you don’t recognize. Remember to review
dormant or infrequently used accounts as well. Call the financial
institution to alert them about unknown charges and request the
account be locked down or closed.
#3: Review your credit reports for “mystery” accounts.
Request copies of your credit report from all three major reporting
agencies — Experian, Equifax and TransUnion — and look for
accounts you might not recognize. Legally, you are entitled to at least
one free credit report annually from each agency. The official site to
request them is AnnualCreditReport.com.
#4: File a report with the Federal Trade Commission.
Create a paper trail to document the theft. Start by filing a report
with the Federal Trade Commission at www.identitytheft.gov. You’ll
receive a recovery plan and even prefilled letters and forms that can
be used to file police reports and dispute fraudulent charges.
#5: Contact your local police department. In addition to filing
a report with federal agencies, you should also contact your local police
department; your report could help them track down someone who is
stealing information locally, but local police might have no recourse if
your identity was stolen by criminals online or overseas.
#6: Sign up for a credit monitoring service. If your
information was accessed in a data breach, you might be offered
complimentary credit monitoring, or you can sign up for a reputable
one yourself. These services watch credit reports for suspicious activity
and send alerts whenever an account is opened.
#7: Place a fraud alert on your credit reports. Contact the
credit bureaus and request a fraud alert be placed on your account.
Initially, a fraud alert lasts 90 days to notify any institution that pulls
your credit report that your identity might be compromised.
#8: Open new credit card and financial accounts. Identity
theft victims should talk to financial institutions to determine how best
to avoid further losses. This will involve closing and reopening accounts,
even ones that haven’t been compromised. It can be a tedious process, but
a necessary one to keep a thief from gaining future control of your money.
#9: Adjust your account settings. Identity theft might involve
a single incident or it can be an ongoing issue. Once your personal
information is compromised, remain vigilant. Regularly update
passwords to online accounts, delete personal information from public
profiles on social media and other sites, and check with your financial
institution about security measures it offers.
#10: Consider a credit freeze. For added protection, you can
initiate a credit freeze which will limit access to your credit report to
companies where you already have a credit relationship but block the
opening of new accounts. While a credit freeze prevents others from
opening accounts in your name, it might also make it difficult for you
to receive approval for loans or credit cards.
Additional resources for victims of identity theft are available at www.
IdentityTheft.gov, the federal government’s one-stop resource for
identity theft and the Consumer Financial Protection Bureau, a U.S.
government agency, that provides information on how to dispute an
error on your credit report. 2
Protect your information: 4 critical steps
Finally, it is critical to safeguard your personal information at all times,
whether it is on paper, online, or on electronic devices. According to the
Federal Trade Commission, there are four important practices to protect
your information:
#1: Know who you share information with
#2: Store and dispose of your personal information securely, especially
your Social Security number
#3: Ask questions before deciding to share your personal information
#4: Maintain appropriate security on your computers and other
electronic devices that house personal information.
Heightened awareness and protecting your personal information can
make you less of a target for identity thieves and cyber criminals.
1
https://www.prnewswire.com/news-releases/identity-theft-on-the-riseduring-covid-19-pandemic-according-to-identityusa-301044010.html
2
www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-mycredit-report-en-314/
Alex Kim, CFP ® , MBA, CPA is a Certified Financial Planner ™
[ www.mmbb.org ] who brings more than 18 years of direct experience in
the financial planning field, and altogether more than 25 years in the financial
services industry. His expertise is in helping people better manage their
personal financial goals.
He holds the CFP ® certification, along with a CPA, and received his BA in
Accounting from Pace University and his MBA from Columbia University.
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