What to Do When You Suspect Fraud on Your Credit?

The convenience of electronic financing has unfortunately ushered in a new threat: credit fraud. The downside of easy money flows through computer systems is the easier access for hackers and petty criminals to this information who use it for personal gain. Victims of credit fraud face a long road of debt disputes and it can take a long time to get their credit score back on track. That is why it is important to take immediate action when there is even a suspicion of credit fraud.

Alerting the Bureaus

There are three major credit bureaus in the United States: Equifax, Experian and Trans Union. In the event that fraud or identity theft is suspected, notify one of these three companies immediately. Request the credit report in question to be placed on fraud alert. A victim's statement also should be submitted at this time which will inform creditors to make a confirmation call before any new accounts can be opened.

Prepare for Disputes

Once you alert a credit bureau about a possible fraud, the other two companies are automatically notified of the discrepancy. Suspicion of credit fraud entitles a person to a free credit report from each of the three bureaus. Scan all credit reports thoroughly to detect inaccuracies and suspicious inquiries. If you find that an account has been opened fraudulently using your information, initiate a dispute with the individual creditor.

Closing Compromised Accounts

As soon as credit fraud or identity theft is suspected, close all compromised accounts immediately. If fraudulent accounts have been opened, close them immediately as well. Make the request to close the account to each creditor in writing.

Confirmation

If and when a creditor forgives fraudulent debts accrued during the period of credit fraud or identity theft, it is important to request a written statement clarifying that the debt has been forgiven.

Vigilance

Check your credit reports every few months, especially when fraud is suspected. This will help you monitor all inquiries and make sure resolved issues stay that way. One free report is allowed each year, but additional reports can always be ordered for a nominal fee.