« Previous Post | Blog Home | Next Post »
5 Steps To (NOT) Take If Your Identity Is Stolen
Posted on Jul 19, 2008 by Tom Fragala
The other day, the Consumerist blog published a piece entitled 5 Steps To Take If Your Identity Is Stolen. Unfortunately, three of the steps are misleading and I felt should be addressed because they are common myths. I submitted a comment there but it seemingly was rejected and never appeared, so I am posting my thoughts here.
First and foremost, to attempt to create a 5 step list for all identity theft will never, ever work. Because the correct procedures for recovering from existing credit card fraud, or new credit card fraud, or ATM/debit card fraud, or other types of fraud are all very different. I'll address the specific steps in the blog post that are inappropriate here. The real world example they used for the 5 steps was a woman who had a credit card stolen with unauthorized charges.
Step 1: Place a fraud alert on your credit files and monitor your credit reports regularly.
In the example they used, credit card fraud on an existing account, placing a fraud alert is not a best practice--it simply is irrelevant when dealing with account takeover. If someone steals your credit card, then they can't open a new credit account in your name, so a fraud alert won't help. Now, setting fraud alert doesn't necessarily hurt, but it is useless in this situation--and may give a false sense of security (fraud alerts might only be useful in the case of new credit account fraud).
Step 3: File a complaint with the Federal Trade Commission (FTC) .
Sorry, this is a waste of time and certainly never a priority. I see this suggestion on so many lists, I think because the writers just lift their ideas from other lists and perpetuate the myth this is helpful to a victim. The FTC does not investigate identity theft, and has no jurisdiction or budget to do so (and never has). The FTC simply uses the data you provide to compile an annual report (the 2006 report was issued in November 2007). So feel free to be a good citizen and report it, but to imply it is an essential step for victims is wrong.
Step 4: Contact your local police or the police in that community where the identity theft took place and lodge a complaint.
Look, it doesn't hurt to get a police report but this is a time consuming, inconvenient step and usually not necessary for existing credit card fraud (again, this was the example they used). If you contact your credit card company in a timely way, dispute the fraud and they agree to wipe off the charges, then there is no need to get a police report. Why waste someone's time with that when it is pointless?
I do appreciate that they made an honest attempt to help people. I just would hate for people to read the steps and be misled or think they are performing best practices.
Filed under: Identity Theft, Tips
Comments
michael webster on Jul 22, 2008
I posted a link to this advice because Consumerist is so obviously wrong.
Hard to understand.
------------------
Thanks Michael
--tom
Josh Hartnett on Sep 15, 2008
As someone who works closely with the issue of Identity Theft, I have some serious issues with your posting. While yes, different types of ID theft require different approaches, some of your steps not to take are still important.
1) If someone has stolen your credit card, it does not mean they can't open a new line of credit in your name. The thief may also have other information about you, address, SSN, i.e. the information necessary to obtain new credit. You should always place a fraud alert (at least!) if your information has been compromised.
3) Filing a complaint with the FTC is not necessary to getting your situation resolved, I agree, but those complaints are very important. The FTC uses those complaints to argue for more funding and legislation. Without documented complaints, Gov'ts have no way of telling how many people are actualy victims. Gov'ts need proof of a problem to solve it, it's very important to help others avoid ID Theft.
4) Yes, if your credit card company has agreed to lift the charges, you don't need the police report. But most of the time, credit agencies, vendors and merchants will require a police report before allowing you to dispute any charges. Filing a police report also puts your theft on record; if it ever happens again with the same card that was stolen, you can produce the report and dispute the charge so much easier.
I understand that much of the information given to consumers regarding what to do after an ID theft is long and confusing, the reality is that recovering from ID theft is a long and confusing proceedure. Credit Card theft is a different crime then ID Theft, although they are often closely related. This can be a confusing subject as well.
Thanks for giving the public information about ID theft, but please don't tell people they shouldn't take specific steps. They should call a help-line (Attorney General's often have them, or the FTC has one) and find out what steps are right for them.
Post a Comment