Each year, more than a million Americans will fall victim to identity theft, according to the Federal Trade Commission. It’s a crime that can throw your life off course, and leave you scrambling to stay ahead of bad actors who want to use your personal information for their gain.
Identity theft occurs when cybercriminals gain access to personal, identifying information – like a social security number – and attempt to use it to steal finances, assets, or to impersonate you.
“It’s a really common crime,” said Rick Clark, Director of Information Security with First Merchants Bank. “And if you’ve been notified that a service you used had a data breach, and your information has been compromised, I believe it’s best to operate as if that theft or impersonation has already occurred – because your information is out there, and to be blunt, it’s only a matter of time.”
So, what do you do when your identity is stolen or compromised?
1. Call the Credit Bureaus
When your identity is compromised, the first call you should make is to call the three major credit bureaus and let them know what’s happened. There are two major steps you can take to protect your credit – freeze your credit or place a fraud alert on your account.
To freeze your credit, you’ll need to place a call to all three credit bureaus and request a credit freeze from each of them. A credit freeze means that lenders can’t pull your credit score – which can stop them from approving loans or opening credit cards in your name.
A credit freeze will persist until you turn it off – again by calling each credit bureau. Need to apply for a loan, mortgage, or credit card? Don’t worry, you’ll be able to “thaw” a credit freeze just long enough to make that happen.
If you don’t want to go through the hassle of unfreezing your credit, you can also place a fraud alert on your account. This will last one year for a basic alert, or seven years if you get an extended alert, and will tell lenders they need to contact you directly before opening any new accounts in your name. To place a fraud alert you only need to contact one bureau – and they will inform the other two.
How to contact each credit bureau.
2. Check your credit report
Consumers are entitled to one free credit report a year, and if your identity has been compromised, you should be checking it.
A credit report contains a detailed breakdown of every account, debt, and loan in your name – so you can see if any new or suspicious accounts pop up. A credit report will also show you inquiries from lenders – so if you see an inquiry from a bank that’s out of state, it can be an early warning sign that someone is attempting to use your information to commit fraud.
You can also use a credit monitoring service. Many of these are complimentary and are offered through your bank or credit card – like SavvyMoney, a free service built into First Merchants’ mobile and online banking platforms.
3. Change Your Passwords
If someone has access to your social security number, Rick says it’s imperative to take the time to change your logins and passwords to important sites and services – especially to bank websites.
“If they get information from a data breach, cybercriminals may have access to an e-mail address and password,” Rick explained. “That, together with your name, can spell trouble, especially if you’ve used that password on other websites.”
Rick also recommends enabling alerts for debit and credit cards and online banking, so you’ll be notified of each transaction, or when someone attempts to log into your bank account.
Most banks offer additional security like secure access codes and multifactor authentication. They may also offer features like First Merchants’ security password process. If you’ve been a victim of fraud, or your identity is compromised, First Merchants can place a password on your account, at your request.
Text Alerts Can Save You a Lot of Heartache
Safeguard your finances with debit card controls
4. Contact the FTC, and Get a Tax PIN
And don’t forget to file an ID Theft report with the FTC. You can do this online, and this report is a safeguard for if you ever need to prove your ID was stolen – having this document on file can help validate any claims you may need to submit in the future.
You’ll also want to visit the Internal Revenue Service (IRS) website and enroll for an IP PIN tool to file your taxes.
“It’s a really common scam when someone has access to your social security number that they’ll attempt to file your tax return before you do,” Rick said. “Then, when you try to file, it pops up with an error message about duplicate returns.”
Having an IP PIN will further confirm your identity and put a stop to those who may try to steal your tax returns.
Taxpayer guide to identity theft
5. Stay alert
It’s disheartening to hear, but once your identity is compromised or stolen, you’ll need to remain alert – indefinitely.
“When your information is stolen, it’s often in a huge database – cybercriminals can’t possibly use all of it,” Rick explained. “They’re selling it – they may sell all of it at once at or they may sell it in chunks. It may go out to one group that will use it immediately or it may go to a group that will hold onto it for a while. Not to sound bleak, but if they have your name and social security number – which is your unique personal identifier, it’s supposed to follow you your whole life – then you need to be on guard your whole life.”
Rick’s advice? Keep all those safety measures you just completed in place and stay vigilant. That includes being on the lookout for more than an unauthorized purchase.
“We see a lot of identity theft tied into phone scams,” Rick shared. “They have your name, phone number, the last four of your social – they may call you and try to gain access to accounts or money that way, or they may try to trick you into giving them even more information. Be extremely, extremely careful when answering calls, don’t give away information or take action over the phone – even if someone seems to know who you are.”
And, if you’re ever offered a free credit monitoring service from a company that had a data leak, you should take it.
Stay up-to-date on current alerts and scams using our Security Center.
Someone used my information to commit fraud, what do I do?
If your identity is stolen – that is, your compromised personal information is used to hack into your accounts, take out a loan, or impersonate you, Rick recommends contacting law enforcement and the creditor or business it occurred with immediately. Contact your bank and make them aware that your identity has been compromised so they can help protect your accounts.
You should also visit the resources below – where you can find detailed reporting instructions and get a personalized recovery plan to help get your life back on track.
Report Fraud/More Resources
State consumer protection offices
Internet Crime Complaint Center(IC3)
Report Fraud to First Merchants Bank
