Answer:
According to Experian, your customer is on the right path. Notifying the creditor that an account was opened fraudulently is an important first step. The creditor should have provided your customer with details necessary to assist them with their investigation, such as asking for a signed fraud affidavit. Experian recommends the following steps to take when someone is a victim of Credit Fraud or Identity Theft:
Request an initial security alert be added to their credit reports: The quickest way to do this is by going online to Experian’s Fraud Center. Once added, Experian will automatically notify the other two national credit reporting agencies so that they can add an alert as well.
Check their credit reports: Your customer should order a credit report from each of the three national credit reporting agencies and review them carefully for any sign of fraud. Check for any unfamiliar accounts, charges, inquiries, or unusual personal information such as addresses that they have never used. Notify Experian immediately if there are any abnormalities. Disputes can be handled quickly and easily online. As a victim of identity theft, they are entitled to a free copy of their credit report. They can make the request to Experian at the same time they add the security alert.
Consider filing a police report: Filing a police or identity theft report with law enforcement gives your customer a record of the fraud. They may be asked to provide this information to creditors to assist in their investigation of any accounts opened or used fraudulently in their name. In addition, your customer will need to provide Experian with a copy of the police record should they wish to extend the initial security alert by adding a 7- year victim statement to their credit report.
Determine if a Security Freeze is appropriate: Freezing a credit file prevents potential new lenders from accessing credit reports without your customer’s permission. Experian suggests that it may not be a good idea to freeze the credit file if your customer is planning to apply for credit in the near future. Credit file freezes are provided at no cost and can be lifted temporarily if necessary.
Consider identity theft monitoring: Experian offers an identity theft monitoring, alerts and dark web surveillance service that includes FICO score and credit monitoring along with fraud resolution and up to $1 million for ID theft insurance for a monthly subscription rate. A number of other companies, including LifeLock, IdentityForce, and IdentityGuard with Watson offer similar services. Credit Karma, another option, offers credit scores and credit reports from TransUnion and Equifax, alongside daily credit monitoring from TransUnion. The service is free; however, the company does not provide identity theft monitoring or insurance.
This Q&A originally appeared in Bankers' Hotline. For more information, sample issues, and to subscribe, click here or email bh@bankersonline.com
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