What You Should Do if You Believe You Might Be the Victim of Identity Theft?

The earlier you detect identity theft, the sooner you can take action and clear your name. Identity theft occurs when someone gets hold of your personal information and uses the information to apply for credit in your name. Theft can go undetected for a long period, and being unaware of the problem can result in a lower credit rating. Take action if you believe you've been victimized.

Flag Your Credit Report

Losing your wallet or having someone swipe a document with your personal information places you at risk of being a victim of identity theft. Act swiftly and contact at least one of the credit bureaus -- Experian, TransUnion or Equifax. Alert the bureau to the situation and ask them to place a fraud alert on your credit file. This helps because if anyone attempts to acquire credit using your name or Social Security Number, the creditor will call you to verify the legitimacy of the credit application.

Freeze Credit Report

Another option involves placing a credit freeze on your credit report. Similar to a credit flag, placing a freeze on your account stops someone from opening an account in your name. This is because creditors are completely unable to access your credit file unless given prior permission by you.

Communicate with Creditors

Review your credit report at least once a year to check for mistakes and the early signs of identity theft. Detecting unfamiliar accounts upon review of your credit file requires quick action. Start by calling the reporting creditor and disputing the legitimacy of the account. Explain that you didn't apply for credit with the company, and ask them to update your credit file and remove the entry.

File a Police Report

If you're certain that fraudulent accounts do appear on your personal credit file, contact your local police department and file a police report. If you became a victim of identity theft while away from home, speak with the police in the area where the crime occurred. Be sure to ask for a copy of the report. Oftentimes, creditors require a police report before offering their assistance and releasing you from the debt.