What To Do If Someone Uses Your Name To Get A Credit Card

There are infinite ways in which a person might fall victim to identity theft or fraud. An identity thief may use your information to submit a fraudulent tax return, obtain a payday loan in your name, or even take over your existing accounts by switching your billing and shipping addresses.

Opening a credit card in someone else's name is another identity theft. The Insurance Information Institute (III) found that in 2020, new credit card account fraud accounted for 30 percent of all identity theft complaints.

How To Find Out If A Credit Card Was Opened In Your Name

If you suspect that someone has created a credit card account in your name, there are a few things you may do to find out. If you are concerned about past or prospective account fraud, you may want to take the following steps.

Checking Credit Histories

You could check your credit reports to see if someone has created an account in your name. Remember that your credit reports from Experian, Equifax, and TransUnion may have different information and reporting, so you should get all three pieces to ensure there has been no fraudulent activity.

Verify The Specifics of Your Reports

After gaining access to all three credit reports, you should carefully review each. Verify that all the accounts and information on the reports you're submitting belong to you and are accurate. Do not delay in reporting an unfamiliar narrative.

However, you should be aware that you have the right to challenge inaccurate information and inaccuracies on your credit reports. This includes incorrect balances and accounts listed as open when they are closed.

Identify Theft and How To Report It

Three potential causes for a non-existent account showing up on your credit reports. It's always conceivable that your account has been confused with someone else's with a similar name or that you haven't recognized a charge that is genuinely yours.

However, it is becoming increasingly likely that you are a victim of fraud. If the latter is the case and you find an account shown on your credit reports that you know you did not open, you need to act quickly to mitigate the harm.

Disclosure of An Unknown Party's Identity Theft

The Federal Trade Commission recommends contacting your credit card provider first because they are the ones who processed the fraudulent charges. Tell the credit card company that you suspect identity theft and have discovered that someone has created an account in your name.

You should next request that the report be closed or frozen to prevent further charges from being added without your permission.

Changing your passwords for your other online accounts is also a good idea, just in case the hacker gets access to more of your data. After that, you may put a fraud warning on your credit reports for free for a year to protect yourself from credit card theft.

Knowingly Reporting Identity Theft

The perpetrator of identity theft maybe someone you know or someone you've never met, even though strangers are the most prevalent perpetrators of this type of crime. If you suspect a loved one, family member, or coworker of stealing your identity, follow the same procedures outlined above.

What Happens To My Credit Report If My Identity Is Stolen?

Credit score harm is just one of the consequences of identity theft; victims may also have to cover monetary damages. In contrast to the $50 cap on responsibility for fraudulent transactions on a credit card, the FTC warns that reporting fraud on a debit card or debit card number more than 60 days after you get your banking statement might result in unlimited liability.

Consider ID Theft Prevention.

Firms like Identity Guard and ID Watchdog monitor your credit files and look for fraudulent activity in your name. Many of these businesses also provide identity theft insurance to cover any damages incurred due to identity theft and the cost of any necessary professional assistance in restoring your good name.

Consider a freeze or fraud warning.

Once you discover identity theft indicators, the FTC recommends placing a fraud warning on your credit reports for one year; however, you can request a more extended fraud alert from the credit bureaus that will remain active for seven years. You also can place a "credit freeze" on your reports with all three agencies to prevent any new accounts from being opened in your name unless you complete the necessary measures to "unfreeze" them.

Summary

Avoid falling prey to identity theft by keeping a tight check on your accounts and ensuring your information isn't easily found. Checking your credit card bills and credit report will help you spot any fraudulent activity before it causes serious damage to your finances.