IDs: Compromised But Not Defrauded

Ever since it became public knowledge a few weeks ago that 40 million identities were compromised in the largest identity theft scam to date, a growing paranoia has established itself among consumers. Things become even trickier when people know they have been compromised, but they haven’t yet become identity theft victims.

Most people realize their information has been compromised after they become victims of identity theft. But, on rare occasions, people find out their information has been compromised before a thief does anything fraudulent with it and they can begin implementing some key steps for identity theft prevention.

How Information is Compromised

There are primarily three ways people find out they have been compromised but not yet defrauded:

1. They responded to a phishing email and gave all of their personal information away before realizing it was a trap.

2. A bank or other institution they do business with sent them a letter notifying them of a data breach that compromised their information.

3. Their wallet or purse was stolen and someone else had access to all of their personal information. 

What to Do if Your Info Has Been Compromised (Even if it Hasn’t Been Used)

1. Close compromised credit card accounts immediately. If someone has gotten their hands of your account information, you are at risk for credit card fraud. As soon as you realize your account has been compromised, notify the credit card company right away and close the account. Many people wrongly assume that placing a fraud alert on the account will be sufficient. But fraud alerts only last ninety days and they prevent thieves from opening new accounts in a victim’s name, but they don’t prevent thieves from running up charges on existing accounts. So, the best thing you can do it close your existing account and open a new one with the same credit card company.

2. Have your bank assign you a new debit card and ask them to monitor your account. Because you debit card number isn’t generally the same as your actual account number, you may be able to resolve the issue of a compromised debit card number without closing your bank account. Contact your bank and inform them of what has happened and ask them to assign you a new card number and closely monitor your account for any suspicious activity.

3. Reset your passwords for all online accounts. Reset your passwords for all of your online accounts and make sure you don’t use any information that a thief might have learned about you for your passwords or security questions. Avoid using your mother’s maiden name, your birth date or your social security number. If you options for security questions are limited, enter made up information in place of real answers. That will make it harder for identity thieves to guess your answers and it will help you prevent identity theft.

4. Place a fraud alert on your credit file. In order to prevent credit fraud you will need to close existing accounts, but that only eliminates half of the potential credit threat. Make sure you also place a fraud alert on your credit file in order to prevent the thieves from opening new credit in your name. Fraud alerts only last for 90 days, so you may want to look into renewing your alert after the initial period expires. You can ask that a fraud alert be placed on your file by contacting Equifax, TransUnion or Experian directly. The bureau you contact will inform the other two of your request.

5. Order your credit report. Although you may be tempted to order your credit report immediately after realizing your information has been compromised. But it can take up to a month for new accounts to show up on your report, so it is optimal to wait between 30-45 days before obtaining your free credit report.

6. Purchase ID Secure. Although there are many free things you can to do prevent identity theft, none of them are as comprehensive as the service  ID Secure provides for a small fee. For just $12.99 a month a professional identity monitoring company will use advanced web crawling technology to search the internet and public records to make sure that your social security number, credit and debit cards and other personal information isn’t being fraudulently used in any way. ID Secure makes sure your identity is being monitored 24 hours a day seven days a week helping to keep it safe. If fraudulent activity is suspected, you will be informed immediately. You can learn more by clicking here.   

If your account has been compromised, but you haven’t yet been a victim of identity theft, you may think you are safe. But identity thieves may take your information and sell it on the black market. Doing that might cause more time to pass between the compromising of the information and the actual theft of your identity. So be on guard and act quickly. If your identity has been compromised it might come down to who acts first—you or the person pretending to be you.