Millions of Americans fall victim to identity theft every year. Having your identity stolen can result in poor credit, hours of paperwork, and so much more. At Members 1st Credit Union we prioritize our members' financial safety and security. That's why we've compiled a step-by-step guide of what you need to know to recover from identity theft. Let's dive in! 

How To Find Out If Your Identity Has Been Stolen 

Here are a few signs your identity is being used by a fraudster:

●      Accounts you didn’t authorize appear on your credit.

●      Lenders contact you.

●      Collection agencies contact you.

●      Your credit has taken a major hit for no discernible reason.

●      You receive bills from lenders and businesses for products you never purchased.

1: Freeze Your Credit

Submitting credit applications is one of the first things thieves do after stealing an identity. This includes opening credit cards and lines of credit, applying for loans, and more, all under your name.

That's why freezing your credit is the first step when recovering from identity theft. Contact the three major credit bureaus - Experian, Equifax, and Transunion to request a credit freeze. 

●      Experian: (888) 397-3742

●      Equifax: (888) 378-4329

●      TransUnion: (800) 916-8800

A credit freeze lets you add a password or pin to your credit report. With a freeze, lenders can only check your credit and/or approve applications if they know the password. Without the password, fraudsters won't be able to open accounts in your name - it's a great way to stop them in their tracks.

It's worth noting that the credit bureaus have up to 24 hours to freeze your credit once requested and no more than an hour to unfreeze once requested.

 2: Change Pins and Passwords

After freezing your credit, contact your financial institution to inform them of the fraud. Credit Unions have protocols in place to help protect your account from identity theft. At Members 1st, we offer 2-factor authentication and an expert fraud identity system and team that works around the clock to keep your account safe. 

You'll need to change your financial passwords - which you can do when you contact your financial institution. Changing your pins and passwords includes online banking, card pins, verbal passwords, and any other layer of security on your accounts. And remember not to use easily guessable passwords such as birthdays, names, or repetitive phrases. 

 3: Close Accounts and Debit Cards

Visit your local branch to have your accounts closed and replaced with new ones. If you're unable to visit a branch, contact them by phone. Members 1st Credit Union members can contact us at (800) 303-3838. 

It can be disruptive to cancel your accounts if you're expecting to make a large financial transaction, but it's the safest step to take when facing fraud.

Please note:  You'll need to update direct deposits with employers using your new account number. The same should be done for automatic payments you've set up. 

If you've issued a personal or business check, then let your financial institution know. At times, it's possible institutions will allow checks to be cashed if you've provided the correct check number, amount, and payee. This is great for people who pay by mail, hire contractors, etc. Also, note that cashier's checks and money orders can be cashed or deposited without you providing a new account number.

4: File a Police Report

File a police report regarding identity theft at your earliest convenience. This helps create a paper trail that your financial institution and local authorities can use to build a case against fraudsters.  

5: Contact the FTC

The Federal Trade Commission is a government agency dedicated to protecting consumers from identity theft. It's a good idea to make them aware of your identity being stolen. In some cases, they offer legal services and can help lend credence to your case if an employer or other government agency looks into it. 

6: Check Your Credit 

Now that you've done everything you can to stop fraudsters, it's time to play clean-up. Checking your credit helps catch any fraudulent credit accounts thieves opened in your name. Remember that credit updates once a month. As such, it's a good idea to check it soon after your identity is stolen and a month later when it updates. Only credit pulls and credit products will appear on your report. This means if the fraudsters make a purchase on your debit card, it won't appear in your report. Also, Federal law allows you to check your credit report for free once every 12 months from each credit reporting company; click here to check your credit report for free.

However, if they attempt to open an account in your name, that will show on your report.

Contact your financial institution if an account you didn't open is on your credit report. Also, start the process for a credit bureau dispute. A credit bureau dispute allows you to remove paid-off or fraudulent accounts from your record retroactively. Initiate a dispute by contacting the three major credit bureaus. The process is lengthy but, if successful, will remove the impact of fraud accounts.

7: Check Your Purchases

Check your digital or physical statements regularly for any fraudulent charges. If needed, you can request copies of your monthly transaction statements from your financial institution, either online or in-person. Be sure to review pending and recent charges through online banking and report any suspicious activity immediately.

8: Shred Old Checks and Account Information

Shred or otherwise securely destroy unused checks connected to the old account number. Once an account is closed, checks with that account number cannot be cashed unless you specifically request them. Check the "Close Accounts and Debit Cards" section above for more information.

However, even with the account closed, fraudsters can use the old account information as verification. Shredding your old checkbook reduces the chance of additional fraud.

 9: Address Potential Security Gaps

You won't always know how fraudsters obtained your information. Here are the most common ways identities are stolen and how to prevent them.

Malware

Malware is malicious software that can be fraudulently installed on your computer, phone, and other electronic devices such as tablets, smartwatches, etc. Typically, malware is installed when you click a phony link or install software from shady companies. Have your electronic devices reviewed by a trusted IT professional to have malware removed. 

Unsecured Documentation

If you carry your social security number on your person at all times, the chance of losing it and the wrong person finding it increases greatly. Store your social security card securely in a lockbox, safe, safety deposit box, etc., to prevent it from falling into the wrong hands.

Loan documentation, credit applications, rental applications, and other highly sensitive documentation have a lot of your personal information. This includes birthday, address, full legal name, social, and more. Store these docs securely or shred them. 

Credit Monitoring Services

In addition to a credit freeze, consider a credit monitoring service. These services alert you when there are changes to your credit and add another layer of security to credit-related transactions. Members 1st Credit Card cardholders have access to a free credit monitoring service which can provide you with the tools to help keep you informed of potential threats to your identity. To learn how to enroll for this free service, click here.

Limit Exposure to Your Personal Info

Avoid letting friends and family borrow your debit and credit card, account number, ID, etc. The more people who have hands on your information, the more likely it is to be used fraudulently.

Plus, if your financial institution finds out you've provided your account number to a non-employer or legitimate business, then you may be liable for the fraud.

An easy example of this is giving your pin to a person to withdraw cash from an ATM only to learn they pocketed some for themselves. In this event, you may have no financial recourse. 

Don't divulge personal info or account information in a public setting or over a public network. We've all seen people who read off their account number in line at a coffee shop or waiting at the airport terminal. This makes it that much easier for any eavesdropping fraudsters to steal their information.

The same is said for connecting to public wifi networks. Public networks are unsecured, and anyone on that network with a little technical savvy can steal transmitted information. Save your most personal online banking and purchases for a secure or home network.

When traveling, consider alternative payment methods, including cashier's checks, traveler's checks, prepaid cards, and small amounts of cash.

10: Set Up Online Banking Alerts

Card Control services allow you to get alerts when a transaction enters your account. You can also set up alerts when your balance goes below a specified amount or when a transaction above a specified amount is deducted. This allows you more active control and monitoring of your accounts and limits the amount of potential fraud. 

Fraudsters have a habit of running as many transactions as possible until your financial institution or yourself blocks the account. Monitoring your account with alerts lets you catch the first transaction and lets you turn off your card to prevent further fraud that much easier.

 The Takeaway

Patience is a virtue when recovering identity theft. It takes time to report, close old accounts and open new ones, update direct deposits and autopay, and repair credit from fraudulent charges. The good news is that many of these steps are implemented retroactively. Any change to your credit due to fraud is removed once the investigation is complete. If you follow the steps we've outlined you'll recover faster and make it that much harder to fall victim to identity theft in the future. To learn more about how to protect yourself, please visit our Security Center at https://www.m1cu.org/securitycenter/.