Financial identity theft typically falls into one of two overarching categories: new account fraud and existing account takeover. In either instance, once you discover fraudulent activity in your name you should file an Identity Theft Report with the Federal Trade Commission, obtain your credit report for review and place a fraud alert and freeze your credit. If you know the thief, you can file a police report.
You may be tempted to pay off fraudulent charges before they harm your credit further, but we recommend you do not. Submitting payment for any fraudulent charges can be seen as assuming responsibility for the debt.
NEW ACCOUNT FRAUD
You will want to speak with the fraud department and inform them that you are a victim of financial identity theft and ask that the account be closed with a note that it was closed due to identity theft. Ask what information is needed to close the account and how long the process will take. More than likely you will have to provide dispute information in writing. Ask for a copy of all documentation submitted in your name that was used to open the account.
When the account has been closed, and it has been determined you are not responsible for the fraudulent account, request a letter of clearance and ensure the information has been reported to the credit reporting agencies (CRAs) and any other entity to which they may have reported the open account. Follow up with the CRAs and other entities directly.
EXISTING ACCOUNT TAKEOVER
If an existing account in your name has been compromised, the steps are very similar to the remediation steps above. Contact your financial institution immediately and speak with the fraud department and inform them that you are a victim of identity theft and ask that the account be closed with a note that it was closed due to identity theft. Ask what information is needed to close the account and how long the process will take. More than likely you will have to provide dispute information in writing. Work with the investigator to identify the fraudulent charges and ask what needs to be done to have the charges removed (or fraudulent money that has been taken restored).
When the account has been closed and it has been determined you are not responsible for the fraudulent transactions, and if the financial institution reported negative information to the CRAs or other entities, request a letter of clearance and ensure the negative information reported has been removed. Follow up with the CRAs and other entities directly.
Ask to open a new account with your financial institution, setting strong passwords and asking what additional security measures can be put in place such as multi-factor authentication and additional passwords when calling for information. Change your password and security questions for any online platforms and apps for that institution.
If you are looking for direct assistance and a personalized plan to remediate your case of financial identity theft, call an expert advisor for no-cost at 888.400.5530 or LiveChat with us.
