AdviceIQ

Recovering From ID Theft

How do you bounce back from identity theft? In today’s technological world, your personal and financial information often sits exposed — and ID thieves employ many methods to profit if they lay hands on your Social Security number (SSN), to name just one of your many types of personal information. Some common frauds associated with ID theft are misuse of existing credit cards, bank accounts and personal information.

This growing crime wave doesn’t stop there: ID thieves may also try to file a tax return under your SSN to claim the refund, apply for credit cards or even access your investment accounts.

You probably feel overwhelmed reading all the news articles and published data regarding ID theft, but few of these resources offer advice for what you can do if your ID becomes compromised. Although no one can guarantee a full recovery, you can come back financially. Have a plan in place, take action immediately and start with these steps:

Contact the companies where you know fraud occurred. Reach out to each company’s fraud department and explain that you believe someone stole your information. Submit a request asking the company to close or freeze your accounts to prevent thieves from adding new charges; many banks, financial institutions and companies might also now contact you if they spot suspicious activity on one of your accounts.

Change the login information for each of your accounts, including passwords and personal identification numbers.

Request your report. You can get one report for free at Annualcreditreport.com; you may purchase an extra report for an additional fee from one of the three big credit agencies:

Once you request your report, ask the agency to put a fraud alert on your credit information.

Next, report the theft to the Federal Trade Commission (FTC); one method is the agency’s online complaint form. Provide as many details as possible, noting transactions you don’t recognize from your credit report. You can also call (877) 438-4338 to file your report.

File a report with your local police. Visit the FTC’s website to get a list of the documents you need to submit such as your driver’s license and proof of address, as well as a guide for creating your complete ID theft report.

Resolving taxes. If the Internal Revenue Service or your local tax authority rejected your tax return due to a compromised SSN, you need to notify the IRS via Form 14039, an “Identity Theft Affidavit.” In addition to completing this form electronically (and providing the necessary identification), you must file a paper version with your tax forms.

Clearing up investment accounts. Check with your investment advisor, bank or broker/dealer about additional protections on your investment and savings accounts.

Depending on your situation, you can take additional steps to recover your information and alleviate the theft’s effect. The FTC provides helpful education, including immediate access to resources for reporting the crime to authorities.

ID theft can be scary and overwhelming. The faster you can react, though, the better your chances of stopping imposters from doing further damage.

Follow AdviceIQ on Twitter at @adviceiq.

Sheila Handrick, CFP, CRPC, is a consultant with Wipfli Hewins Investment Advisors LLC in Madison, Wis.
 
Hewins Financial Advisors, LLC d/b/a Wipfli Hewins Investment Advisors, LLC (“Hewins”) is an investment advisor registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Hewins is a proud affiliate of Wipfli, LLP. Information pertaining to Hewins’ advisory operations, services, and fees is set forth in Hewins’ current ADV Part 2A, copies of which are available upon request or at www.adviserinfo.sec.gov. The views expressed by the author are the author’s alone and do not necessarily represent the views of Hewins or its affiliates. The information contained in any third-party resource cited herein is not owned or controlled by Hewins, and Hewins does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by Hewins of the third party or any of its content or use of its content. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment, or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner, investment advisor, attorney or other professional.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

TAGS: AdviceIQ
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish