There are different types of security breaches or identity theft. It can wreak havoc on your credit. And, unfortunately, some breaches can hurt your child’s future credit too. Knowing what can happen is one thing, but if a breach does occur, it’s essential to know what steps should be taken to clean up the mess.
Act Fast to Fix the Fraud
Contact the fraud department of your bank or credit union and explain to them what happened. They‘ll issue you a new debit card and have you choose a new PIN. They’ll also monitor your accounts.Contact the fraud department of all your credit cards.
You'll also want to place a fraud alert with the credit bureaus. It’s free to do. You need only contact one. The one you choose is obligated to tell the other two. This fraud alert will stay on your credit report for one year. But you can renew the alert when it expires.
You can also apply an extended fraud alert that lasts for seven years.
Change all your passwords. This includes any social media accounts you have. Every password needs to be unique.
Monitor all your bank and financial accounts. You’ve notified the bank, but you should also be vigilant.
Pull your credit reports from one of the three. These are Experian, TransUnion, and Equifax. Keep a close eye on them. You specifically want to see if any new accounts have been opened using your name.
Contact the Federal Trade Commission
The Federal Trade Commission (FTC) has a website, IdentityTheft.gov that can help you. It’s a resource for identity theft victims. It will provide you with sample letters and checklists to help you through the recovery process.Use the FTC Report
If you see that new accounts have been opened that you didn’t authorize, call these companies’ fraud departments.Explain that someone stole your identity and ask the business to close the account. Provide them with a copy of the FTC Report to verify your claim.
Once you’re told the account has been closed, ask the business for a letter. You'll want it to say the fraudulent account isn’t yours. It also must read that you’re not liable for any charges, and it was removed from your credit report.
Make sure you write down who you contacted as well as the date.
Freeze Credit File
A credit file freeze is more inconvenient than a fraud alert. If you freeze your credit at all three bureaus, it prevents creditors from looking at your credit.For example, if a scammer goes to open a credit card account or take a loan out using your credit, the creditor will not be able to check your credit score or history. That stops the thief.
Stop Debt Collectors
If the thief has used your credit to open accounts and purchase goods, you might be hearing from debt collectors.Child Identity Theft Recovery
Your children and grandchildren are not immune to a financial security breach.Check to see if your child has a credit report. Generally, children don’t have credit reports. But if someone uses their information for fraud, they may have one.
Contact and open fraudulent accounts and explain that your child is a minor and can’t enter into legal contracts.
You‘ll want the company to send you a letter informing you that the child isn’t liable. You’ll need to send a follow-up letter. Include the FTC Report and a copy of your child’s birth certificate.
Take Action Quickly
The key to a financial recovery is to act quickly. If you suspect you’ve been compromised, change all your passwords and contact your credit card companies and financial institutions.Always file an FTC Theft Report if you discover that your fears are founded.
