Debit cards are a bit different . In order to limit your liability if your card was physically lost or stolen , you need to report the loss quickly . Your liability stands at $ 50 for the first two days after the discovery of fraud , and then jumps to $ 500 between the two-day and 60-day mark . Beyond that , you might be accountable for all charges . If your physical card wasn ' t taken , however , there ' s more leniency ; as long as you report the fraudulent use within 60 days , you won ' t be liable for a cent .
In some cases , thieves aren ' t even able to use the card in the first place . Many card issuers automatically detect suspicious activity and put a block on the card to prevent any future charges . Some companies will even call cardholders to alert them to the attempted use .
Recovering from identity theft
Recovering from full-blown identity theft , in which fraudulent accounts are opened or fraudulent documents are issued in your name , can take years . This type of fraud can be complex and far-reaching , involving multiple avenues of misuse — some of which may go undiscovered until a collection agency attempts to collect a debt that you weren ' t even aware existed . It wreaks havoc on credit scores and sometimes places extraordinary stress on victims and their families .
Not all of the effects of identity theft are as easy to quantify or resolve , however . For instance , identity-theft victims often suffer serious emotional consequences , though that element of recovery is rarely discussed . But imagine losing your dream home because you couldn ' t get a mortgage , due to years ' -old identity theft of which you weren ' t aware .
A full 36 percent of victims report suffering moderate to severe emotional distress as a result of identity theft . A recent Equifax report detailed the psychological toll identity theft can take on its victims , noting that many of these individuals experience emotional effects similar to those experienced by victims of assault or home invasion .
If you ' ve been the victim of identity theft , immediately consult the federal government ' s online resources for ID-theft management . With just a few clicks , you can report fraud and build a custom recovery plan to handle your situation . Once that ' s in place , consider consulting with a therapist or psychologist to help manage the emotional fallout .
Avoiding identity theft
If you ' ve never been a victim of identity theft , count your blessings . The good news is that minimizing your risk of identity theft is easier that it may seem . Here are a few tips :
1 . Shred sensitive documents before throwing them away . Anything that has personal or financial information — canceled checks , credit-card statements , even junk mail from a bank or credit-card company — is a potential gold mine to an identity thief . When shopping for a good shredder , look for a model that crosscuts the paper into tiny pieces , rather than just into strips that can be pasted back together .
2 . Erase computer and smartphone hard drives . Clean out your personal information before getting rid of old PCs , tablets and smartphones . It is surprisingly easy for someone to get access to personal data if the hard drive hasn ' t been totally reformatted and cleaned .
3 . Use antivirus software on your computer . Antivirus software will stop most attacks , as long as you let it update every day . Also , don ' t download anything that you don ' t trust completely .
4 . Check your credit reports regularly for discrepancies . You can get up to three credit reports free every year . Reading them can help you head off any potential issues before they become too big .
5 . Don ' t give out personal information over email . You don ’ t trust everyone you meet on the street , so why would you trust people who email you out of the blue ? A reputable company won ' t email you to solicit personal information , so if you ' re seeing messages asking for your Social Security number , it ' s likely a ploy .