The digital age has made identity theft much more common. Scammers are constantly finding ways to hack your financial information and ruin your credit. As a Florida citizen, it is essential that you know the warning signs of credit identity theft to help you avoid any serious consequences.
Understanding Credit Identity Theft
Credit identity theft is a kind of identity theft in which someone uses your personal information, such as your Social Security number, credit card data, or banking information, to open new accounts and make purchases in your name without your consent. Scammers do this by stealing your information without your knowledge. This can damage your financial health, ruin your credit score, and open you up to more fraud.
Common Warning Signs and Red Flags of Credit Identity Theft
Protecting yourself from credit identity theft starts with recognizing the signs and red flags. You should look for:
- Unexpected Credit Report Changes: Your credit report is an easy area to monitor. If you notice accounts or loans you didn’t apply for, it could indicate that someone has stolen your information. Be proactive and review your credit report regularly.
- Denied Credit Applications: If you have been denied credit applications but know your credit history is impeccable, someone may be applying for credit in your name or have acquired credit under your name, which can ruin your financial standing.
- Unusual Transactions on Your Bank Account or Credit Card Statements: One of the most essential places people discover that identity theft has occurred is in their bank statements. Monitor your statements regularly and verify that each transaction is legitimate.
- Bills or Collection Notices for Accounts You Didn’t Open: Fraudsters can open accounts using your information. Because the fraudster will not pay the bills, these accounts will eventually go to debt collectors. If you receive a debt notice from an account you are unfamiliar with, act quickly and contest it with the creditor.
It’s important to be aware of your finances at all times, especially now that most people keep their entire life savings in digital accounts that can be hacked.
What to Do After a Credit Breach
No matter how hard we try, sometimes avoiding credit identity theft is just not possible. Whether you’ve fallen for a well-thought-out scam on the internet or phone, or you’ve simply been an unfortunate victim of a mass hacking, knowing the steps to take after identity theft has been detected is critical to preserving your finances. If you are ever a victim of credit identity theft, these are the steps you should take:
- Report the Fraud to the Authorities: The Federal Trade Commission (FTC) is responsible for most identity theft cases. Report the incident at FTC.gov. After that, report the incident to your local authorities as well.
- Dispute Fraudulent Charges and Accounts: Call all of the credit bureaus to report any fraudulent accounts that have been created using your information, and immediately dispute any charges you see on your bank or credit card statements.
- Consider Credit Monitoring Services: Credit monitoring is available to help you be vigilant about fraud appearing on your accounts. You can also choose to freeze your credit, which will prevent anyone from applying under your name. You can always remove the freeze if you need to apply for an account.
- Work with a Credit Repair Professional: If you’re overwhelmed by the process, consider contacting a professional who can help you repair your credit and take the burden off your shoulders.
How Lehrman Law Can Help Protect Your Credit
Our team at Lehrman Law specializes in helping Florida residents protect their credit against theft and fraud. If your credit has already been stolen and you’re facing the financial consequences, our experienced team is here to help you dispute any unauthorized accounts, work on recovering your losses, and protect your future financial well-being. Contact Lehrman Law today and find out how we can help you secure and restore your credit.