What to Do If Someone Opens a Credit Card in Your Name
Discover a fraudulent credit card? Learn the essential steps to address the issue, secure your financial identity, and recover from credit card identity theft.
An unfamiliar credit card account requires immediate attention to prevent further identity misuse. This situation indicates identity theft, a serious financial crime where personal information is used fraudulently. Swift action is crucial to mitigate financial damage and protect your credit. This guide provides a structured approach to address the fraudulent account, secure your credit profile, and formally report the incident for long-term recovery.
Addressing the Fraudulent Account
First, identify the fraudulent account, often revealed by unexpected mail or unfamiliar inquiries on your credit reports. Note details like the issuer’s name, account number (if visible), and opening date.
Contact the credit card issuer’s fraud department. Find the official fraud department contact number on the issuer’s website, not from suspicious mail. State you are an identity theft victim with a fraudulent account. Provide account details like the number and opening date.
Request the account be closed or frozen to prevent further charges. Ask for unauthorized charges to be removed. Confirm the issuer will investigate and ask about the 30-90 day timeline. Request written confirmation of account closure and charge removal. The issuer may require a fraud affidavit, a sworn statement detailing unauthorized activity. Submit this document promptly for their investigation. You are not responsible for disputed charges or accrued interest during the investigation.
Securing Your Credit Profile
Beyond addressing the fraudulent account, protect your entire credit profile. Fraud alerts and credit freezes offer distinct protection levels. A fraud alert prompts lenders to verify your identity before extending new credit, while a credit freeze restricts credit report access, preventing new accounts. Provide personal information like your name, Social Security number, date of birth, and addresses to implement these.
To place an initial fraud alert, contact one of the three major credit bureaus: Experian, Equifax, or TransUnion. The contacted bureau must notify the others, and the alert lasts one year. This prompts creditors to contact you to verify identity for credit applications. An initial fraud alert also provides a free credit report from each bureau to review for suspicious activity.
For robust protection, place a credit freeze with each major credit bureau separately. Unlike a fraud alert, a credit freeze must be initiated individually with Experian, Equifax, and TransUnion. This locks your credit report, preventing most creditors from accessing it and stopping new credit from being opened. A credit freeze is free, doesn’t affect your credit score, and remains until you lift or “thaw” it.
Regularly review your credit reports to maintain security. Federal law grants a free credit report from each of the three nationwide credit reporting companies every 12 months via AnnualCreditReport.com. Stagger these requests throughout the year for more frequent monitoring. Dispute any fraudulent accounts or inquiries directly with each credit bureau. Dispute fraudulent information with credit bureaus online, by mail, or phone. Provide clear documentation, such as copies of communication with the issuer or identity theft reports. The credit bureau will investigate, possibly contacting the creditor to verify information. Under the Fair Credit Reporting Act (FCRA), credit bureaus must investigate disputed information within 30 days.
Reporting and Recovery
Formal reporting to government agencies establishes an official record of identity theft and aids long-term recovery. This creates documented proof for dealing with creditors, debt collectors, and other institutions. Before filing, gather all relevant information: unauthorized account details, suspicious transaction dates, and communications with the issuer or credit bureaus.
IdentityTheft.gov, operated by the Federal Trade Commission (FTC), is the primary resource for reporting identity theft. Filing online provides an FTC Identity Theft Report and a personalized recovery plan. This report serves as official evidence, invaluable for disputing fraudulent accounts, removing inaccurate credit report information, and preventing debt collectors from pursuing unowed debts.
After the FTC report, consider filing a police report with local law enforcement. While local police may not actively investigate every case, a police report provides additional official documentation. When filing, bring your FTC Identity Theft Report, government-issued photo ID, proof of address, and other theft evidence. Request a copy of the police report for your records; combined with your FTC report, it forms a comprehensive “Identity Theft Report” often required by creditors.
Utilizing your consolidated Identity Theft Report is essential for asserting your rights and ensuring proper handling of fraudulent activity. Send copies of this report to credit bureaus to block fraudulent information from your credit file permanently. Creditors are prohibited from collecting or selling debts once they receive a valid Identity Theft Report. Beyond formal reporting, proactive steps ensure continued protection. Change passwords for all online accounts, especially financial ones, using strong, unique combinations. Regularly review statements for all existing financial accounts, including bank accounts and other credit cards, for unusual activity. While not a substitute for active monitoring, some explore identity theft protection services for monitoring and recovery assistance.