If you are a victim of identity theft, take the following four steps as soon as possible, and keep a record with the items of your conversations and copies of all correspondence.

Place a “fraud alert” on your credit reports and review your credit reports.

Fraud alerts can help prevent an identity thief from opening any more accounts in your name. Contact the toll-free fraud number of any of the three consumer reporting companies below to place a fraud alert on your credit report. You only need to contact one of the three firms to put an alert. The firm you call is required to contact the other two, which will place an alert on their versions of your report, too.

Equifax: 1-800-525-6285;  P.O. Box 740241, Atlanta, GA 30374-0241

Experian: 1-888-EXPERIAN (397-3742); P.O. Box 9532, Allen, TX 75013

TransUnion: 1-800-680-7289; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

Once you place the fraud alert in your file, you’re entitled to order free copies of your credit reports, and, if you ask, only the last four digits of your Social Security number will appear on your credit reports. Once you receive your credit reports, review them carefully. Look for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts that you can’t explain. Check that information, like your Social Security number, address(es), name or initials, and employers are correct. If you find fraudulent or inaccurate information, get it removed. Continue to check your credit reports periodically, especially for the first year after you discover the identity theft, to make sure no new unlawful activity has occurred.

What is a fraud alert?

There are two types of fraud alerts: an initial alert and an extended alert.

An initial alert stays on your credit report for at least 90 days. You may ask that an initial fraud alert be placed on your credit report if you suspect you have been, or are about to be, a victim of identity theft. An initial alert is appropriate if your wallet has been stolen or if you’ve been taken in by a “phishing” scam. When you place an initial fraud alert on your credit report, you’re entitled to one free credit report from each of the three nationwide consumer reporting companies.

An extended alert stays on your credit report for seven years. You can have an extended alert placed on your credit report if you’ve been a victim of identity theft and you provide the consumer reporting company with an “identity theft report.” When you place an extended alert on your credit report, you’re entitled to two free credit reports within twelve months from each of the three nationwide consumer reporting companies. In addition, the consumer reporting companies will remove your name from marketing lists for pre-screened credit offers for five years unless you ask them to put your name back on the list before then.

To place either of these alerts on your credit report or to have them removed, you will be required to provide appropriate proof of your identity: that may include your Social Security number, name, address and other personal information requested by the consumer reporting company.  If you have questions about the process, a qualified credit repair company may be able to assist you.

When a business sees the alert on your credit report, they must verify your identity before issuing you credit. As part of this verification process, the business may try to contact you directly. This may cause some delays if you’re trying to obtain credit. To compensate for possible delays, you may wish to include a cell phone number, where you can be reached easily, in your alert. Remember to keep all contact information in your alert current.

What is an identity theft report?

An identity theft report may have two parts:

Part One is a copy of a report filed with a local, state, or federal law enforcement agency, like your local police department, your State Attorney General, the FBI, the U.S. Secret Service, the FTC, and the U.S. Postal Inspection Service. There is no federal law requiring a federal agency to take a report about identity theft; however, some state laws require local police departments to take reports. When you file a report, provide as much information as you can about the crime, including anything you know about the dates of the identity theft, the fraudulent accounts opened and the alleged identity thief.

Part Two of an identity theft report depends on the policies of the consumer reporting company and the information provider (the business that sent the information to the consumer reporting company). That is, they may ask you to provide information or documentation in addition to that included in the law enforcement report which is reasonably intended to verify your identity theft. They must make their request within 15 days of receiving your law enforcement report or, if you already obtained an extended fraud alert on your credit report, the date you submit your request to the credit reporting company for information blocking.

The consumer reporting company and information provider then have 15 more days to work with you to make sure your identity theft report contains everything they need. They are entitled to take five days to review any information you give them. For example, if you give them information 11 days after they request it, they do not have to make a final decision until 16 days after they asked you for that information. If you give them any information after the 15-day deadline, they can reject your identity theft report as incomplete; you will have to resubmit your identity theft report with the correct information.

You may find that most federal and state agencies, and some local police departments, offer only “automated” reports, reports that do not require a face-to-face meeting with a law enforcement officer. Automated reports may be submitted online, or by telephone or mail. If you have a choice, do not use an automated report. Why? It’s more difficult for the consumer reporting company or information provider to verify the information. Unless you are asking a consumer reporting company to place an extended fraud alert on your credit report, you probably will have to provide additional information or documentation when you use an automated report.

Close the accounts that you know, or believe, have been tampered with or opened fraudulently.

Call and speak with someone in the security or fraud department of each company. Follow up in writing, and include copies (NOT originals) of supporting documents. It’s important to notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of your correspondence and enclosures.

When you open new accounts, use new Personal Identification Numbers (PINs) and passwords. Avoid using easily available information like your mother’s maiden name, your birth date, the last four digits of your Social Security number or your phone number, or a series of consecutive numbers.

If the identity thief has made charges or debits on your accounts, or on fraudulently opened accounts, ask the company for the forms to dispute those transactions:

For charges and debits on existing accounts, ask the representative to send you the company’s fraud dispute forms. If the company doesn’t have special forms, use the sample letter to dispute the fraudulent charges or debits. In either case, write to the company at the address given for “billing inquiries,” NOT the address for sending your payments.

Once you have resolved your identity theft dispute with the company, ask for a letter stating that the company has closed the disputed accounts and has discharged the fraudulent debts. This letter is your best proof if errors relating to this account reappear on your credit report or you are contacted again about the fraudulent debt.

File a report with your local police or the police in the community where the identity theft took place.

Then, get a copy of the police report or at the very least, the number of the report. It can help you deal with creditors who need proof of the crime. If the police are reluctant to take your report, ask to file a “Miscellaneous Incidents” report, or try another jurisdiction, like your state police. You also can check with your state Attorney General’s office to find out if state law requires the police to take reports for identity theft.

What do I do if the local police won’t take a report?

There are efforts at the federal, state and local level to ensure that local law enforcement agencies understand identity theft, its impact on victims, and the importance of taking a police report. However, we still hear that some departments are not taking reports. The following tips may help you to get a report if you’re having difficulties:

Furnish as much documentation as you can to prove your case. Debt collection letters, credit reports and other evidence of fraudulent activity can help demonstrate the seriousness of your case.

Be persistent if local authorities have told you that they can’t take a report. Stress the importance of a police report; many creditors require one to resolve your dispute. Remind them that consumer reporting companies will automatically block the fraudulent accounts and bad debts from appearing on your credit report, but only if you can give them a copy of the police report.

If you’re told that identity theft is not a crime under your state law, ask to file a Miscellaneous Incident Report instead.

If you can’t get the local police to take a report, try your county police. If that doesn’t work, try your state police.

Often this is through no fault of their own, but in some cases the reason why people fall victim to credit card fraud is because they have been careless with their credit card details, which is something that fraudsters prey on.

With credit card fraud levels still rife it is vital that cardholders are more careful with their details, as otherwise the risk of becoming a victim of card fraud is all the greater.

Certain types of credit card fraud levels are greater than others, and this includes CNP or Card Not Present fraud, which is where the credit card is not needed to conduct a transaction such as with online or telephone purchases made by credit card.

With an increasing number of people shopping online for various items from groceries to clothes and entertainment it is vital that more caution is exercised with online credit card transactions.

This includes ensuring that the site you use is a secure site, and also not linking to websites from emails and then putting in your card details. You should also avoid saving your card details on any sites that you purchase from if you have a shared computer, as this can also heighten the risk of becoming a victim of credit card fraud if someone with dishonourable intentions gets hold of the details.

Another thing to be careful of with your credit card is ordering or making purchases by phone. You should never give out your credit card details to someone who has called you out of the blue stating that they are from some company or other, because unless you have phoned the firm yourself you actually have no idea who you are talking to.

Also, be careful about shouting out your credit card details on the phone when there are other people around that you don’t know as this could result in someone getting hold of your details.

One thing that many people do is dispose of their credit card statements by simply throwing them in the waste paper basket, which then gets emptied into black bags and put outside ready for collection day.

However, some fraudsters will go as far as to search through bin bags in order to find documentation such as this, which they then use to commit card fraud. You need to ensure that you shred all credit card statements and dispose of them carefully in order to avoid this happening.

Many credit cards now offer increased levels of protection and security against fraud.

This can include offering fraud guarantees that offer a zero liability policy if your credit card details are used without your knowledge or consent.

Credit card providers have now started offering identity theft protection services, including Barclaycard credit cards and Capital One credit cards.

Capital One credit cards, including the Capital One Classic credit card, also offer free access to Equifax alerts – sending you an alert if anything changes on your credit file and also offering you two free Equifax credit reports per year.

Whether you need a bad credit rating credit card or a mainstream credit card – you should be able to compare credit cards and improve the level of security against fraud offered by your credit card company.

Credit card fraud can cause serious problems. Not only can you lose money but your credit can be ruined, your identity stolen, and you can even be charged for crimes you didn’t commit. Keeping your credit card information out of the hands of a thief and preventing credit card fraud should be a major consideration In your everyday life.

There are many things you can do to avoid credit card fraud:

Step #1: Limit the damage of losing your purse or wallet

Losing your purse or wallet can put your entire identity at risk. Chances are you have a great deal of personal information stored in your purse or wallet. Limiting what you carry on your persons will limit what a potential thief can assess.

Do not carry every credit card you own on you at all times. If you will not be using the card don’t keep it with you. If a thief steals your wallet don’t make it easy for them to access all your credit cards.

Step #2: Limit your junk mail

Junk mail can be a gold mine for a thief. All those credit card offers that come in the mail open a window for a thief to steal your mail and order a credit card that is in your name.

In order to limit this threat avoid giving out your address to companies that do not need it. Specifically request to be removed from mailing lists at your bank or other places where you do business. Also, have your name and number added to the national do not call registry at www.donotcall.gov. This will prevent many phone attempts a gathering information used to send you junk mail.

Step #3: Invest in a paper shredder

When you do receive this kind o junk mail have it shred. Any documents containing personal information should be shred as soon as they are no longer needed. Anything that has credit card information, including statements, needs to be shred when no longer needed.

A paper shredder is a simple, easy way to protect your information, prevent credit card fraud, and prevent identity theft.

Step #4: Use caution when using your credit card

While credit cards make life easier by facilitating payment it is not a good idea to be complacent about using your cards. Particularly on-line, giving your card out on many websites can get you into trouble.

Use payment processing companies instead of using your credit card directly. Sites like paypal.com will allow you to use your credit card without giving out your credit card number.

Step #5: Check your credit report

Doing everything that you can to prevent credit card fraud does not mean that it will never happen to you. The Federal Trade Commission has made it possible for you to check your credit report for free every 12 months. Take advantage of this free look at your report to make sure that you have not become the victim of credit card fraud.

Prevention is better than limiting the damage, but be on the lookout for fraud on your accounts all the same. When you get a copy of your credit report make sure that everything on it is accurate. Credit card fraud will show up as credit cards on your report that are not yours, or charges on your cards that you didn’t initiate.

If you spot fraud contact the credit bureau immediately to dispute the transaction and contact the credit card company to cancel the card.

Credit card fraud is a scary thing. Your personal information and data is compromised and someone out there is living off of your credit. Follow these guidelines to help protect yourself from this potentially devastating type of fraud.