Use Your Credit Report to Catch Identity Theft

You might be surprised to learn that your credit report can help you catch identity theft. One of the tools in your arsenal, when it comes to addressing identity fraud, is the frequent checking of your credit report. Your credit report is more than a list of your accounts; it can also be a red flag.

Catch Identity Theft

When your identity is stolen, the fraudster is likely to use your information to open new accounts. These fraudulent accounts will appear in your credit report.

catch identity theft

If you want to catch identity theft early on, you need to regularly check your credit report. You can get help in that area by going to AnnualCreditReport.com for the free report you are entitled to each year from each of the major credit reporting agencies.

Go through the information in the report, keeping an eye out for accounts that you know you didn’t open. If you see accounts that aren’t yours, you need to let the credit reporting agencies know. Call them, and then follow up in writing.

It might be necessary to place a credit freeze on your account if you are concerned that it could happen again. With a credit freeze on your account, you will be notified before a new account can be opened using your information. That can prevent another situation in which your identity is stolen and used to open credit in your name.

You might just red-flag your account as well, instead of placing an all-out freeze on the account. With the red flag, lenders are supposed to take extra steps to ensure your identity before opening an account in your name. It doesn’t always work as effectively as a credit freeze, though.

Even if you place a freeze on your account or have it red flagged, it still makes sense to keep tabs on what’s happening with your account. The good news is that there are plenty of web sites where you can keep tabs on your credit for free. While it’s not the same as looking at a full credit report, it can still be helpful, since you can usually see when something new pops up, and identify changes to the situation.

Your credit report is your first line of defense when you want to catch identity theft early on. Regular attempts to keep tabs on your report, and what’s in it, will allow you to identify problems quickly and move to take care of them.

Fraudulent Charges: Check Your Account Statements

While you do want to check your credit report regularly in order to identify fraudulent accounts, you also need to keep up with your account statements to make sure that you can see fraudulent charges.

While your credit report can help you catch identity theft as it relates to new, fraudulent accounts, it won’t provide you with information on fraudulent charges. For that, you need to check your accounts regularly. Go through your bank and credit card account statements on a regular basis so that you can see what’s happening with your purchases.

Sometimes, instead of opening a new account in your name, an identity thief will just take information about your credit cards and make purchases with that information. You will want to catch that type of identity theft early on and dispute the charges. If you catch it early enough, you can get your zero liability fraud protection in full, and avoid being responsible for the charges.

Bottom Line

Your credit can be an indicator that your identity is being tampered with. You need to keep track of what is happening with your credit, and be sure that you are on top of the situation. Check your credit report every three or four months to see if there are fraudulent accounts. Check your account statements each month for fraudulent charges. You can even use the Internet to check your account charges more frequently, if it makes sense for you.

There is no way to completely prevent identity fraud; it is only with vigilance that you can expect to catch identity theft.

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