How to Spot Identity Theft on Your Credit Report Before It’s Too Late

Identity theft is a serious crime that can wreak havoc on your finances and credit. In 2021 alone, nearly 42 million Americans were victims of identity theft, according to the Federal Trade Commission. By the time many people realize their identity has been stolen, a thief may have already racked up thousands in fraudulent charges and damaged their credit.

The good news is you can often detect the warning signs of identity theft early by regularly reviewing your credit reports. Spotting suspicious activity and reporting it promptly can minimize the damage and make the recovery process much easier. Here’s how to check your credit for identity theft red flags:

Red Flags of Identity Theft on Your Credit Report

You’re entitled to a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once every 12 months. Visit AnnualCreditReport.com to request yours. Make a habit of checking your reports at least annually, if not more frequently.

When reviewing your credit report, keep an eye out for these warning signs that your identity may have been compromised:

1. Accounts You Don’t Recognize

If you see credit cards, loans, or other accounts that you didn’t open, this is a major red flag. Identity thieves often open new accounts in victims’ names.

2. Hard Inquiries You Didn’t Authorize

Multiple hard inquiries from lenders you don’t recognize could indicate someone is trying to open accounts in your name.

3. Incorrect Personal Information

Be wary if you spot addresses, phone numbers, or employers listed that aren’t yours. Thieves may change your contact info to intercept communications.

4. Sudden Drops in Credit Score

An unexpected plunge in your credit score could mean fraudulent accounts or charges are affecting your credit profile.

5. Unfamiliar Collection Accounts

Collection agencies listed for debts you don’t recognize is another sign of potential identity theft.

6. Maxed Out Credit Cards

If credit cards are suddenly maxed out or showing high balances you didn’t incur, your accounts may have been compromised.

7. Errors in Payment History

Late payments or defaults listed for accounts in good standing could mean a thief has taken over your existing accounts.

If you spot potential fraud, read on for steps to take.

What to Do If You Suspect Identity Theft

If you find errors on your credit report or unfamiliar accounts, act quickly to prevent further damage:

1. Contact the fraud department of the credit bureau(s) reporting the information. Dispute the inaccuracy and request that a fraud alert be placed on your credit file.
2. Contact the fraud department of any banks or creditors where fraudulent accounts were opened. Close the accounts and request that they be flagged as “closed at consumer’s request.”
3. File an identity theft report with the FTC at IdentityTheft.gov. This report can be used to remove fraudulent information from your credit report and stop debt collectors.
4. File a police report with your local law enforcement and keep a copy for your records. Some creditors may require a police report to absolve you of fraudulent debts.
5. Consider placing a credit freeze on your credit reports with each bureau. This prevents new accounts from being opened in your name until you lift the freeze.

Different Types of Identity Theft to Watch For

Identity thieves can use your personal information in several different ways depending on what data they accessed. Here are a few of the most common types of identity theft that could show up on your credit report:

Financial Identity Theft

This is when a scammer uses your credit card number, bank account details, or Social Security number to make unauthorized transactions or open new accounts in your name.

Warning signs on your credit report:

• Credit card accounts you never opened
• Loans or lines of credit you didn’t apply for
• Maxed out credit limits on your legitimate accounts

Medical Identity Theft

Your insurance or medical information could be used to fraudulently obtain health care, prescription drugs, or medical equipment.

Warning signs on your credit report:

• Medical collections for services you never received
• Unpaid bills from doctors you didn’t visit

Tax-Related Identity Theft

A scammer could use your Social Security number to file a tax return and steal your refund.

Warning signs on your credit report:

• IRS collections for a fraudulent return
• Notification from the IRS that more than one return was filed under your SSN

Protect Yourself from Identity Theft

In addition to monitoring your credit, take precautions to safeguard your personal information and reduce your risk of identity theft:

• Use strong, unique passwords for all your online accounts
• Never share sensitive details like your SSN or bank PIN
• Shred documents containing personal or financial information before throwing them out
• Be wary of unsolicited calls or emails asking you to verify your information
• Enable two-factor authentication on your accounts when available
• Consider signing up for an identity theft protection service that monitors your credit and alerts you of suspicious activity

Identity theft can strike when you least expect it. But by understanding the warning signs and checking your credit reports often, you can minimize the damage to your finances and your credit.

If you’ve already been a victim of identity theft, it’s not too late to start repairing the harm. The steps above can help you begin restoring your credit and moving forward.

Get Help from Mississippi Consumer Protection Lawyers

Dealing with identity theft can be overwhelming and time-consuming. If you’ve fallen victim to identity theft in Mississippi, the consumer protection lawyers at Ware Law Firm can help. We have extensive experience assisting identity theft victims and can guide you through the process of disputing fraudulent accounts, clearing your credit report, and seeking compensation for damages.

Don’t wait until it’s too late – make checking your credit report a regular habit and reach out for legal help at the first sign of trouble. With vigilance and quick action, you can protect yourself from the devastating effects of identity theft.

Contact Ware Law Firm today for a free consultation if you suspect you’ve been a victim of identity theft or need assistance with other consumer protection matters. Our experienced Mississippi attorneys are here to fight for your rights and help you achieve the best possible outcome.