According to Security.org’s 2023 Credit Card Fraud Report, 65% of credit card users in the U.S. have been a victim of credit card fraud at some point in their lives – that’s nearly two-third of American credit card users.²
While the data point is cause for concern, it’s also reassuring: Those 151 million Americans have had their identity stolen, but with the help of the FTC, local authorities, credit bureaus, and credit card companies, they’ve also been able to find a solution to their identity theft. And so can you.
Worried that your identity has been used to open a fraudulent account? Here’s how to report identity theft and avoid long-term damage to your finances:
1. Contact the credit card company
The first step is to contact the credit card company or financial institution through which the fraudster opened the account. Even if you don’t belong to that institution, you can find their fraud department number online and follow their process to report the fraud and close the account.
Some companies may only freeze the account initially, meaning you’ll need to follow up to ensure the account is closed after you’ve gathered more information. For instance, you may not be able to close the account until you have fraud reports from the FTC and police. Regardless, contact the credit card company right away, even before you have these reports – that way, the criminal can’t keep spending money that isn’t theirs.
2. File reports with the FTC and local police
After contacting the credit card company, you’ll need to file an official Identity Theft Report with the Federal Trade Commission at IdentityTheft.gov. The website is user-friendly and generates a recovery plan that you can follow after filing.
Once you’ve filed, you can send the Identity Theft Report to the credit card company and distribute it to the credit bureaus as official evidence of the fraud.
The FTC also suggests filing a police report with your local police department. Visit the police in person, and bring your Identity Theft Report. While the local police will not likely be able to make any arrests, they can provide you with yet another official report that will help your case.
3. Alert the credit bureaus
Contact all three major credit bureaus to let them know the new account is fraudulent and should not appear on your credit report. The links below will take you to the dispute hub for each of the bureaus:
4. Initiate a fraud alert or a credit freeze
If you’ve been the victim of credit card fraud, the FTC advises placing a free, one-year fraud alert on your credit report. You only have to do this at one of the three credit bureaus; the bureau where you set the alert must contact the other two bureaus on your behalf.
When you have a fraud alert on your account, businesses must take extra steps to confirm your identity before issuing a new credit account in your name.
Anyone can set a free, one-year initial fraud alert – and you don’t even need the FTC Identity Theft Report to do it. But if you want a free extended fraud alert (that will last for seven years), you’ll need an official report from the FTC or police.³
In addition, you can freeze your credit (you’ll have to do this individually at all three credit bureaus). When your credit report is frozen, you won’t be able to open any new credit accounts in your name – but neither will anyone else. You’ll need to unfreeze your credit (called a thaw when it’s temporary) before applying for a loan.
5. Update your security best practices
While it may not be possible to know how a fraudster accessed your personal information, there are steps you can take to ensure it doesn’t happen again.
For starters, assume all your passwords have been compromised and update them accordingly. Use password best practices (including unique passwords for every account!) when changing your login info.
Consider using a password vault (protected by a strong master password and two-factor authentication) like the iCloud Keychain, Google Password Manager, or apps like 1Password to help create and manage random, strong, and unique passwords.
You can also opt into security features offered by each account. For instance, a mobile banking app may offer two-factor authentication and instant transaction alerts.
Finally, begin monitoring your credit report regularly, either through the free credit reports from the major credit bureaus or through a credit monitoring service.
