VIDEO: The Best Ways to Spot Identity Theft
Did you know that a recent study found that there were 16.7 million victims of identity theft in 2017? What’s even more concerning is that these identity thefts combined for a total loss of $16.8 billion.[1] Still to this day, one of the most effective ways to prevent identity theft is to spot (and stop) the financial damage early. Here are a few ways how.
Number 1 – check your credit report often.
Checking your credit report annually or signing up for a credit-monitoring service (free for customers of most financial institutions) is one of the best ways to quickly spot identity theft. Ask your credit card company or bank if they offer customers free credit monitoring.
A second way you can spot credit issues early is to check your credit card statement and see transactions you didn’t make. Checking your statements regularly can help you identify fraud and errors. If you see a small charge you don’t recognize, don’t brush it off as unimportant. Fraudsters often charge a small amount to test whether a stolen credit card number is still valid.
Third, you notice bills stop coming in. If you’re used to receiving paper or emailed statements from any company, be wary if you stop getting them. One way identity thieves cover their tracks is by changing the mailing address first on an account or discontinuing paper statements.
And the 4th way to spot potential identity issues is when you’re declined for a loan or credit card. Unfortunately, many consumers don’t find out that they’ve been victimized until they discover that fraudulent activity has tanked their credit. If you apply for a loan and are denied for bad credit, immediately check your credit and begin the dispute process for any fraudulent accounts.
Here’s the deal, identity theft and financial fraud can happen to anyone and can be expensive and time-consuming to fix. Spotting the warning signs early and acting quickly can help minimize the damage. If you believe that you have been the victim of identity theft, immediately contact the three major credit reporting agencies and your financial institutions. You may also have to file a report with your local police department.
[1] https://www.iii.org/fact-statistic/facts-statistics-identity-theft-and-cybercrime
