We are living in a world where cybercrime has become a common thing. So, if these crimes are common, we must take extra precautions to save our information from attacks and fraud. Credit card fraud is a common issue, and according to FTC, they received around 167,000 complaints of fraudulent credit card activity in 2018. Unfortunately, we don’t have any way to resolve these; instead, we can only take preventive measures. But we can only take proper action if you have basic information. So, let’s start with this:
What are credit card report frauds? Definition of identity theft:
Identity theft is an essential thing that leads to credit report fraud. In identity theft, someone stole personal information like social security numbers and used it wrongfully to gain financial benefit. However, it will appear on the credit report if anything happens without your knowledge. It’s vital to mention that it’s nearly impossible to rectify these errors from credit reports. These frauds happen in many forms and of many types. So, to avoid the hassle, take protective actions against these activities.
Don’t ignore warning signs:
Are you worried about credit report fraud and identity theft? If yes, then don’t ignore warning signs. According to the American institute, around 48% of adults believe that identity theft will cause them a financial loss soon. Apart from this, one out of four people has faced identity theft. Identity theft could happen in these forms:
- If someone purchased on your credit card without your knowledge
- You may receive a notice of payday loan
- If you notice false credit applications on your name
- If you find out an account takeover
So, it’s a difficult situation, and as a consumer, we should protect our data. However, don’t hesitate to act in this situation and contact your bureau to act.
How to handle credit report frauds? Tips to follow:
One day you find out that someone is using your personal information to take financial benefits. It’s a problematic situation, and you may wonder how to protect yourself from fraudulent activities. As a consumer, you should protect data while working on self-employment and traditional job models. So, here are the ways that you can follow to prevent credit report fraud.
Contact the credit bureaus:
If you are a victim, then contact the credit bureau on priority. Mainly there are three major credit bureaus named:
- Experian
- TransUnion
- And Equifax
You need to contact one bureau, who will notify the remaining ones. You can also take necessary actions by contacting governments, banks, and credit agencies. In this way, they will be aware of the situation and can stop an attempt at an ongoing theft.
Protect your credit report:
There are many ways that you can use to protect your credit report. For instance, you can add a fraud alert that will warn you about potential identity theft or fraud. Here are different types of fraud alerts that you can get:
| Initial fraud alert | It is an initial stage where you can place alerts if you believe you will become a victim of fraud. Companies keep the signals on your file for one year in this category. After this period, the alert will be removed. |
| Extended fraud alerts | These alerts happen after your identity has been stolen. However, after placing these alerts, you can order two credit report copies in one year. The extended alerts stay for up to seven years. |
In an extended fraud alert, creditors contact you via phone or other ways to verify whether it’s you who is requesting.
Freeze your credit record/security:
According to the federal government’s law, you can freeze and unfreeze credit records for free at three major nationwide companies. In a security freeze, other creditors can’t access your credit file. Moreover, if your account is frozen, others can’t open an account in your name unless you lift the ban. But security freezes don’t apply if someone asks for your file for employment, tenant screening, and insurance purposes. In case of a security freeze, one credit bureau doesn’t contact the other, and you will have to inform them separately for a record freeze. It’s a great way that you can use to stop others from opening accounts in your name.
Obtain credit report & review:
If you want to rectify errors and identify fraud early, get a credit report and review it after regular intervals. You can request that Transunion issue a credit report to identify unauthorized activity. If there is suspicious activity, then contact the creditor. Moreover, don’t forget to monitor ongoing credit. If there is any ambiguity, ask the credit card reporting companies to eliminate errors. If you want to keep track of income & expenses, then take the help of paystubs.
Report errors/frauds to the authorities:
It is another thing that you can do to reduce credit report fraud. However, in this matter, you can report to the following authorities:
- Contact government agencies like FTC and report fraudulent activities
- Contact local law enforcement agencies
- Report problems in front of credit grantors and financial institutions
- Contact companies with financial links and inform them that your account is compromised. In this situation, these companies will change the PIN, issue a new card, and protect your assets.
- Inform the bank and ask them to stop transactions and report them as stolen
- Contact companies that you don’t recognize on your credit report
After doing all this, don’t forget to provide a copy of the police report to the authorities. In addition, you can add supporting documents and related phone conversations as a reference.
Note: After taking all measures, don’t forget that follow-up is critical. However, you should contact the agencies to ensure the investigation results in your favor. These are small yet crucial steps that secure your finances from malicious activities. Moreover, don’t forget to act to remove fraudulent information from your credit report. If data remains on the report, it could negatively impact the future.
