What to Do If Someone Opens a Credit Card in Your Name
Identity theft is on the rise, setting new records every year. In 2018 alone, more than 446 million personal records were exposed across 1,244 data breaches, according to the Identity Theft Resource Center.
Discovering that someone opened a credit card in your name can be shocking. You may find out through a statement in the mail for an account you never opened, a sudden drop in your credit score, or an unfamiliar account on your credit report.
Once the initial shock fades, it’s crucial to act fast. The thief still has your personal information and could continue using it. Taking immediate steps can help you close the fraudulent account and prevent further damage.
Steps to Take If Someone Opens a Credit Card in Your Name
1. Contact the Credit Card Issuer’s Fraud Department
The first thing you should do is notify the credit card issuer that the account is fraudulent. If you received an email or letter about the account, do not call the number listed—it could be a phishing scam. Instead, visit the issuer’s official website and use the customer service number provided there.
Ask them to close the account and investigate the fraud. If they are unable to close it immediately, request that they place a hold or freeze to prevent further charges. Keep detailed records of all conversations, including names and case numbers, for future reference.
2. Report the Identity Theft
File an identity theft report with the Federal Trade Commission (FTC) at IdentityTheft.gov. This report serves as official documentation and can help you dispute fraudulent accounts with credit bureaus.
You may also choose to file a police report, especially if the fraud involves a large amount of money or if you know who committed the crime. Some creditors and credit bureaus may request a police report to process fraud claims.
3. Secure Your Credit with a Fraud Alert or Credit Freeze
Once you’ve handled the fraudulent account, take steps to prevent further damage. You can place a fraud alert or a credit freeze on your credit report.
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Fraud Alert: Alerts lenders that you may be a victim of identity theft. They must verify your identity before opening new accounts in your name. You only need to request an alert with one of the three credit bureaus—Experian, Equifax, or TransUnion—and they will notify the others.
- Initial fraud alert: Lasts for one year and can be renewed indefinitely.
- Extended fraud alert: Lasts for seven years and requires a copy of your FTC identity theft report.
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Credit Freeze: Prevents creditors from accessing your credit report entirely, making it difficult for thieves to open new accounts. Unlike fraud alerts, you must request a freeze separately with each credit bureau. A credit freeze does not affect your current credit accounts but may need to be lifted when applying for new credit, renting an apartment, or seeking employment.
4. Check Your Credit Reports for More Fraud
A fraudulent credit card account may not be the only issue. Check your credit reports for any other suspicious activity. You can get free weekly credit reports at AnnualCreditReport.com from all three major credit bureaus.
Review the accounts listed, especially the opening dates, and compare them with your records. If you notice any unfamiliar accounts, investigate further and take immediate action.
5. Dispute Fraudulent Accounts with Credit Bureaus
If you find unauthorized accounts, dispute them with each credit bureau. Fraudulent accounts can severely damage your credit score, especially if the thief has missed payments or maxed out the credit limit.
To dispute fraudulent accounts:
- Contact Experian, Equifax, and TransUnion directly through their websites.
- Submit your FTC identity theft report as supporting evidence.
- Clearly state that the account is fraudulent and request its removal.
Once your dispute is received, the credit bureaus will contact the issuer for verification. If they confirm fraud, the account will be removed from your report.
Take Action Immediately
Identity theft can cause lasting financial harm if left unaddressed. The faster you act, the less damage a fraudster can do. Take these steps as soon as you discover a fraudulent credit card account in your name.
To protect yourself moving forward, regularly review your credit reports, monitor your bank and credit card statements, and be cautious about sharing personal information online.
By staying vigilant, you can reduce your risk of identity theft and safeguard your financial future.
