Identity theft and what you should do if you are victimized

What if you should become a victim of identity theft? Identity theft happens to many unsuspecting individuals, so it might easily happen to you.

Theft of identity is a growing problem, and according to some estimates, will happen to several million people this year to one degree or another. Working your way out of trouble if you have been victimized by a criminal with the intention of stealing your ID can be a frightening experience. Financial crimes might be as minor as acquiring access to your eBay account or it might be as complicated as purchasing a home while posing as you and leaving you with the loan or mortgage payments.

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Identity theft can impact anyone, even if they have taken precautions to avoid becoming a victim. The crooks involved in these activities are getting smarter every day, and it's difficult to keep up with the latest methods of theft if you are busy with other things, such as leading a normal life.

Here is a list of some things you may need to do if you think your identity has been stolen or compromised.

• If possible, put a freeze on your credit. A few states permit you to put a freeze on your credit that will stop anyone from doing a credit inquiry on you unless you unfreeze it. Some states only permit freezing credit files if you have been a victim of identity or credit theft, so you may have to produce a police report to prove it. Without a credit check, nobody can open an account on your behalf, so a freeze acts as a proactive measure.

• Contact the three main credit bureaus - Fraud alerts don't always work, but they represent a good effort towards clearing up an identity theft problem The credit reporting agencies can put a notation in your credit report. In theory, such a notation, called a "fraud alert" will demand that you be informed should anyone attempt to open an account or take out a loan while posing as you. Call Trans Union, Experian and Equifdax and inform them that you have been scammed..
• Drop any accounts from stolen credit cards - Ask your issuing bank for new bank cards to replace the compromised ones. Contact your bank about obtaining a new debit card. They will probably give you a card with a completely different credit card number.
• File a police report - A mortgage lender isn't going to eat a $150,000 loan simply because you tell them, "I didn't purchase that"; you need legal proof. If it is in your name, you are responsible for it unless you can prove otherwise, so you need to report the incident to the police. It may not help catch the thief, but filing a crime report will go a long way towards persuading your lenders that you have, really, been victimized.

It is a wise idea to keep all of your financial documentation in one safe place so that you can get at all of it quickly should you have to when trouble comes. The course of recovering from identity or credit theft is laborious and not a bunch of fun. It might take months, or even several years, to completely rid yourself of harm done by a stranger.