Identity Theft - How to Cope With It

I receive a demand for overdue payments on a credit card I never had. What does it mean? It could mean identity theft. Someone somewhere has been using my identity to run up bills. Identity theft would have a considerable negative influence on my credit score and at the same time, creditors would be demanding payment for debts I have not incurred. What would I do if I become a victim of identity theft?

What I Would Do if It Happens to Me
The moment I realize I am a victim of identity theft, I would act fast to try to minimize the damage:

Notify Credit Bureaus - I would immediately inform the fraud units of one of the three credit bureaus - Experian (formerly TRW), Texas (www.experian.com), Equifax, Atlanta (www.equifax.com), and TransUnion, California (www.transunion.com). On notifying one, they will automatically inform the other two. I would report that I am a victim of identity theft and that another person is using my identity information to obtain credit fraudulently in my name.

Make a Crime Report - I would report the crime to my local police department. If the frauds have occurred in areas other than where I live, I would inform the police of those areas too. I would ensure the fraud accounts are listed in the police report, and keep a copy of this 'Identity Theft Report'.

Federal Trade Commission - I can report the fraud to the FTC on its online identity theft complaint form (www.consumer.gov/idtheft ). FTC shares all such information with investigators who are fighting identity theft nationwide.

I still need to sort out the problems of:

* New credit accounts opened by the impostor

* My existing credit/debit accounts

* Debt collectors, trying to collect fraudulent bills

There are many similar problems to sort out and cope with.

Do you know how scamsters use personal information for identity theft? Let me show you how, in the next article of this series.

Jon Sterling tries to help you overcome Identity Theft problems through informative articles to help you reach your personal financial goals.