Identity Theft Steps: Restore Your Identity After a Lost or Stolen SSN

by Tom Fragala Archive

There are several important steps to take after your Social Security number (SSN) has been lost, stolen or divulged and you've fallen victim to identity theft (or suspect you have). This can happen in many ways — through a lost or stolen wallet or purse, home burglary, dumpster diving, stolen mail, a data breach, even a dishonest employee with access to your personal records.

Why your Social Security number is such a big deal

Your Social Security number is a key that can unlock your identity. It can be used for many fraudulent purposes, from opening new credit card accounts in your name to getting cellphone service. A clever thief can even use it to "prove" that they're you, perhaps to access your financial accounts. That's why it's essential to protect your SSN and act quickly if it's compromised. Here's what to do:

• Report identity theft to the credit bureaus.
  Contact the three credit bureaus to report the identity theft. The law says you only need to call one bureau, which then must contact the other two. To be safe, call all three yourself.
  When you call, follow the ID theft victims instructions, and place an initial 90-day fraud alert on your credit file. The alert notifies any company checking your credit that you're a victim and urges (but doesn't require) them to contact you before issuing new credit. Within two weeks of your call, you should receive either three free victim credit reports or the instructions for ordering them (which you should do immediately).
• File a police report.
  Visit the police, either where the crime occurred or where you live, and ask to file a ID theft report. If they refuse to take the report, be polite, but insist. If necessary, file a “miscellaneous incidents” report. Get a copy of the report, and make several photocopies. Use this report to set seven-year extended fraud alerts with the credit bureaus.
• Examine your credit report closely.
  Study the information in your report very carefully, looking for suspicious activity or errors. Some errors — incorrect addresses, for example — are made intentionally by imposters. Fraudulent new accounts opened in your name may also appear there.
  • If you find suspicious activity on your credit report, contact:
    • The creditors or banks that opened the accounts, at the address listed on the report.
    • The credit bureaus, to dispute and remove the bogus information on the report. Follow the instructions on your credit report. If you find simple errors but not fraud, follow the same instructions.
    Keep copies of every letter and enclosure, and send your information via certified mail, return receipt. (You can dispute some things online, but that's only recommended for basic errors.)
• Check and protect your financial accounts.
  Early fraud detection is one of your strongest safeguards, so examine every financial and utility account for unauthorized activity as soon as your next statement or bill arrives. According to the FTC, 67 percent of those who quickly discovered misuse of personal information didn't incur any out-of-pocket expenses.¹
  If you find anything suspicious, report it immediately to customer service, close the account or get a new number, and request an investigation. Follow up in writing (via certified mail, return receipt). The company should send you a fraud affidavit to complete. They may also ask that you get it notarized, although federal law doesn't require that.
  Contact every company where you have a financial account. Ask for a PIN or password that will allow you — and only you — to make changes to your account. Carefully guard this PIN or password. I recommend encrypted software programs for storing account numbers and passwords.
• Protect your federal government benefits.
  The federal government uses your SSN to administer your Social Security and Medicare benefits. Fraudsters commonly misuse SSNs to illegally get employment and earn wages in your name — they make the money, and you get stuck with the taxes. This can cause you huge problems with the IRS, state tax agencies and the Social Security Administration (SSA).
  If your Social Security or Medicare card is lost or stolen, you can request replacement cards from the SSA website. While there, you can also:
  • order your most recent earnings statements to check for fraud;
  • block telephone and online access to your information; and
  • if you currently get benefits, set up a password for accessing your account.
• Consider a credit freeze.
  A credit or security freeze places a lock on your credit file, preventing almost anyone from pulling your credit report. This typically prevents anyone from opening credit accounts in your name, since nearly all companies require a credit check before opening a new account.
  A security freeze can be costly and inconvenient if you plan to make new purchases that require credit, but it's a good idea if you've already experienced credit-related fraud or if you know that a thief has your SSN. Just make sure you freeze your files at all three credit bureaus. (To find out if a freeze is available in your state and what the procedures and costs are, visit the Privacy Rights Clearinghouse and Consumers Union.)
• Move fast.
  A lost or stolen SSN can lead to serious identity theft and financial loss. But if you act quickly, you can shut down most of the avenues a thief will take to misuse your identity.

Footnotes

¹ 2006 Identity Theft Report, Federal Trade Commission