Credit Card Fraud: How to Protect Yourself

For victims of credit card fraud, finding justice and starting finances anew can be a very long, difficult and confusing process. If someone steals your identity and racks up credit card debt in your name, the credit card companies’ number one concern will be repayment, not sympathy for you. Credit card forgery is all too easy to accomplish.

Identifying information about you is not difficult to find, particularly with today’s widespread use of the internet. In fact, all someone needs to open a credit card in your name is to sign and return an application that has been sent to you in the mail. Such applications can be mailed accidentally to the wrong address, or even can be dug out of your trash can. Signatures are not checked for validity. As far as the credit card companies are concerned, it does not matter who sends back the application, as long as someone does.

Fortunately, there are simple steps that you can take to help protect your finances:

• Perhaps most obviously, shred all credit card applications that you receive by mail. No one is going to try to tape back together a shredded application while the neighbor’s trash can is just a few steps away.

• Check your credit report periodically. By monitoring your credit reports for any changes, you will be able to immediately spot any unusual or unrecognizable activity.

• Ask that your contact information be removed from mailing lists. Of all sources, the credit bureaus themselves sell your name to lists including those pesky credit card offers. To remove your name, call the Opt out Request Line at 1-888-567-8688.

Of course, even when people take precautions seriously, they still can become victims of identity theft. Should this occur, you must act quickly and very persistently. Remember, an imposter running up debt under your identity is terrible, but committing a crime under it would be even worse! As soon as you suspect credit fraud, you should take the following steps, and fast. Keep an accurate, complete log of all of your contacts and attempts:

• Contact the police and ask that a report be filed. Even if they do not honor your request, your documented attempt will be important.

• Browse your credit report to find the creditors involved in the fraud. Contact them and alert them of the fraud. Close all such accounts.

• In the event of a fraudulent credit card, call the credit card company and ask that the card be closed and processed as “account closed at consumer’s request”. Processing otherwise could harm your credit.

• Contact the credit bureaus and ask that a Fraud Alert be added to your report. It will be visible to anyone who pulls your credit, and requires some extra verification before credit can be granted.

• Utilize credit repair to fix the fraudulent items on your reports.

These steps are a great starting point, but there is no quick fix to recover from identity theft. If you are lucky enough to know who is responsible for your misfortune, you should take him or her to court. Obviously, in this scenario, those careful records you kept will be very useful!

Diligently send documentation of your claims to creditors until they agree to resolve your debt liability, or to work with you to find a solution. Keep copies of everything that you send, as well as an accurate record of your attempts to reconcile the situation, because you almost certainly will need to be persistent. Creditors probably will not be too eager to agree that the debt owed to them was incurred fraudulently.

Taking proactive measures against identity theft is key, but if you are unlucky enough to experience it firsthand, work hard until you clear your name and your finances. It is unfair and can be difficult, but it is up to you to prove that you are not liable for debts acquired through identity theft.