Becoming a victim of identity theft is one of life’s most cruel experiences. How could this happen to you? You’ve worked hard for everything you have and now it may all be in jeopardy. What can you do when your identity is compromised?

You must now act quickly to deal with this before it begins to impact your life on a higher scale. Typically victims of identity theft assume the worst about the situation mostly because they’re not aware of their rights and the extent of the damage done to their credits or how to report identity theft. Under federal law you’re only responsible for the first $50 dollars of the accumulated debt charged under your name and often you can have that waved as well.

Do not volunteer to pay for the fraudulent charges no matter how small they are for this will may make you fully responsible for the charges and your dispute may become invalid. You are also eligible to receive a free copy of your credit report from all three credit bureaus if you are the victim of identity theft.

1. Contact your creditors to report your identity has been stolen

You will not be responsible for the fraudulent charges and the creditor can not hold you responsible as long as it can be proven that your identity was in fact used by someone else. Ask the creditor to either close or freeze the account so no more charges can be made. Then you must submit in writing a follow up on this request, making sure that your letter is sent to them via certified mail, you’ll need to keep your certified mail receipt to make sure you can prove they got your letter.

Once the creditor has done their investigation and you have been cleared of the charges, make sure you ask for a letter specifying this and keep it files somewhere safe. You’ll need this in case other charges reoccur, or if your credit report takes a hit because of these charges.

2. Contact the Federal Trade Commission and report your case

You can reach the FTC at:

www.ftc.gov/idtheft

1-877-IDTHEFT (438-4338)

TTY: 1-866-653- 4261

Identity Theft Clearinghouse

Federal Trade Commission

600 Pennsylvania Avenue

NW, Washington, DC 20580

Reporting identity theft to the FTC can help law enforcement crack down on identity thieves. The FTC also enforces your rights as a victim, so should a creditor insist on making you responsible the FTC can certainly help.

3. Contact the three credit bureaus and start fraud alerts on your credit report

There are two types of fraud alerts. An Initial fraud alert is typically done when you suspect that your identity is at risk, these alerts are good for 90 days and they can be renewed as needed. You’re also entitled to a free credit report from each credit bureau when you place an initial fraud alert. The second type of fraud alert is the extended, which you can do if you have already been a victim of identity theft, the extended alert will remain active for 7 years and you’ll also received your credit report twice a year free. Your name will also be removed from marketing lists and pre-approved lists.

Fraud alerts will help you prevent further theft or use of your information, when you have fraud alerts active, creditors must verify your information before approving any application for credit or service under your name.

• Equifax: 1-800-525-6285; www.equifax.com; P.O. Box 740241, Atlanta, GA 30374- 0241
• Experian: 1-888-EXPERIAN (397-3742); www.experian.com; P.O. Box 9532, Allen, TX 75013
• TransUnion: 1-800-680-7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

4. File a police report

The next thing you need to do is file a report with your local police department and make sure you give all the details you can about the incident, you must also be able to prove to the police that you have been victimized by an identity thief so gather all the information you can from you credit card company or bank. The police do not usually handle cases like this since sometimes reporting on identity theft cases is beyond their jurisdiction so be prepared to deal with some bureaucracy, but you must succeed at getting the report filed if you can’t do it your local police department try your sheriff’s office.

When you do get the report filed, get it notarized and make several copies of it to keep handy because during the dispute process you will need to send this report to creditors and everyone else that requires it.

5. Be on the alert, report and take action

If your driver’s license number has been used Contact your state’s department of motor vehicles and report your case to them as well.

Contact your local post office if your mail has stopped arriving everyday and you suspect it is being redirected.

Contact the Social Security Administration (SSA). If you believe that your Social Security number has been used to fraudulently to obtain welfare or Social Security benefits, visit the SSA website at www.socialsecurity.gov/oig/guidelin.htm or call the SSA Fraud Hotline at 800-269-0271.

Contact the U.S. State Department. If your passport was stolen U.S. State Department website at www.travel.state.gov/passport/index.html or call 202-955-0430.

Change your PINs. If your ATM or debit card was stolen, do not use your old PIN for your new card. Choose a password that is obscure but that one that you will remember; do not use common numbers such as your birth date.

Identity theft victims should fill out an identity theft affidavit. The affidavit form is available from the Federal Trade Commission. Creditors may accept this affidavit when you make your claim that you are not responsible for a new account or for transactions on an existing account, but sometimes they require more. The information that you provide will enable the creditor to investigate your claim.

Start a log. As you make phone calls or send letters, keep notes of your conversations and correspondence with authorities and financial institutions, including dates, names, and phone numbers. Also keep track of all time spent and expenses you incur; you can deduct theft-related expenses on your income tax return, assuming you itemize deductions, and you may be able to seek compensation if you are ever able to sue the thief.

Finally, consider buying identity theft insurance either through your own insurance company or simply sign up to one of the many identity theft prevention services available to automate the process of protecting your identity with more sophisticated features like 24/7 monitoring of your credit and personal information.