Identity Theft Recovery: The Road Back

Not too long ago, a friend of mine mentioned that one of his coworkers recently recovered his stolen identity. I asked how long the process took. "Only two years" he replied.

Compared to my business partner's six year nightmare "only" maybe appropriate but like most victims of identity theft, he probably thought "when". As in, "when will I get my life back?"

Privacy Rights Clearinghouse, a consumer nonprofit organization, reported that victims spend on average 175 hours trying to recover their identity, often over a period of years. Factor in out of pocket expenses, (usually over $1,500 according to the FTC) and recovery gets painfully magnified.

What are the steps to identity restoration? It starts with obtaining a police report. That report doesn't mean other law enforcement agencies have been contacted. Yet you must do a complete search of local and federal law enforcement databases too find out if anything else, including criminal activity exists on your identity.

You're also going to need the police report to contact the many and I mean many different agencies and organizations, including the Social Security Administration, The Federal Trade Commission, all of your financial institutions, the 3 major credit bureaus, the Passport Office,The Department of Motor Vehicles, the Post Office, as well as the Medical Information Bureau . All of these places must be sent a fraud notification alert. Concerning your financial institutions, get them to cancel your credit cards and close your bank accounts. Find out from your bank about any suspicious activity, such as accounts tampered with or opened fraudulently. Reopen new bank accounts with password verification.

Know your rights. According to the Fair Credit Reporting Act of 1992, you must be told not only what's in your file but if that information is being used against you. The Federal Trade Commission recently expanded the rights available to victims of identity theft, including your right to get negative information due to fraud blocked from your records.

This brings us to the credit bureaus. Make sure your credit report reflects the identity theft and gets flagged with a fraud alert. Many victims have received assurances that the matter would be resolved, however months and sometimes years later, the credit bureaus have not cleared their records. This without a doubt ranks as THE biggest headache for identity theft victims.

Once a negative gets put on your record, it seems the credit bureaus refuse to remove it, in spite of the countless documentation you provide to them. This can affect you well into the future when buying a house, car or any other big ticket item. If you are going to do this by yourself, constant follow up is critical. That goes for all the organizations but especially the credit bureaus. Be diligent until the matter gets resolved. Getting a lawyer wouldn't be a bad idea.

Stay Away from "credit repair companies". No matter what they advertise, there's usually nothing they can do to help you with identity theft. Some of them even offer to help you apply for credit under a new identity. Hello? When trying to eliminate fraud from your record you don't want to create more fraud!

Advise the utility companies. It's not just bank accounts and credit cards. Many identity thieves commit fraud by opening telephone accounts, purchasing cable television or establishing credit with the gas & electric companies, in the hopes it will go unnoticed for as long as possible.

If necessary get counseling. Identity theft can be a shattering experience mentally and emotionally. Victims and family members often feel violated. It's not their fault of course but the feelings remain. A network of support groups and counselors exists if you need it.

The road back from identity theft can take years, cost a lot of money,and cause much stress and pain . But with follow up, support and belief that the nightmare will end...the nightmare WILL end.

Do You Know An Identity Thief

What makes identity theft the epidemic it has become? The fact that half of all victims know the person that committed the theft according to the Better Business Bureau's 2005 Fraud Survey. Watch out for these red flags 1. Resentment I worked for a company that handled lost and stolen credit card reports. I don't know how many times someone called and said their ex or soon to be ex spouse stole all of their financial information and went on a vengeance spending spree. Of course it's not limited to former husbands and wives but anger is a powerful emotion. The obvious familiarity, total access to private information combined with the desire to do as much damage as possible makes this the most devastating form of id theft financially and emotionally. No matter what the relationship, always keep a close eye on your credit and other financial information. 2. The Snoop. The people that ask you too many questions of a very personal nature. Its easy to not think anything of it.The person may be a relative, neighbor or close friend but ask yourself (and them) exactly why do they need to know your date of birth or social? You may even catch them snooping thru your personal information. Now it could all be perfectly innocent but with id theft the number one crime for the fifth year in a row, do you really want to take that chance? 3.Addiction "I don't have any drug addicts in my family." Good deal but substance abusers are not the only people who will steal from you. Alcoholics, people addicted to porn, even compulsive shoppers are potential identity thieves. Gambling and pornography on the internet are billion dollar industries. According to Jim Vaules, an identity theft expert for Lexis Nexis, "You see a lot of internet gambling and pornography sites being charged to stolen cards. [Identity Thieves] might use the card of a family member or friend" Any kind of obsessive behaviour can throw a person's normally rational judgement out the window because the only thing that counts is satisfying the habit NOW! Addiction also means more than likely the identity thief can and will justify their actions. Even if you catch them red handed, its very possible they'll say its not their fault, put the blame on you or just shrug their shoulders and say "so what?" What do you do in instances like this? Filing a police report may not be a bad idea. Author Liz Pullman Weston of MSN Money says "A little tough love may be the only way to stop a miscreant from becoming a career criminal" Even if the addict apologizes profusely and vows never to do it again (quite common) the odds are high they will do it again unless they get some counseling. Filing a police report no matter how reluctant you are could be a step in that direction. There are of course other symptoms. Somebody living above their means or mail that looks like its been tampered with. Identity theft requires constant vigilance with credit monitoring, storing private information in secure places, shredding documents etc. If identity theft happens to you, the best thing besides recovering your identity will be your peace of mind in realizing it wasn't anyone you know.