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What Is Identity Theft
Identity theft happens when someone uses your personal information to commit fraudulent activity. This includes applying for credit cards, bank accounts, loans, or government benefits. If you suspect you are experiencing identity theft, contact your local police department.
You don’t always realize you’re being targeted because the thieves usually steal your identity without your knowledge. They might even use your Social Security number to open up credit lines in your name. Once they’ve taken over your identity, it’s hard to regain control.
This article has been prepared by a Denver tax attorney at The McGuire Law Firm to provide information related to identity theft and tax-related issues.
If you think you’ve been victimized by identity theft, here are some things you should do:
1. Contact your creditors
2. File a report with the Federal Trade Commission
3. Check your credit reports
4. Request copies of your credit card statements
5. Monitor your credit score
6. Consider filing a police report
7. Get help from a consumer protection agency
8. Start rebuilding your financial life
Can Identity Theft Affect Me?
Identity theft occurs when someone uses your name and Social Security Number (SSN). Fraudsters use your personal information to commit a wide range of criminal acts such as opening lines of credit, applying for jobs, buying homes, taking out mortgages, and even submitting fraudulent tax returns.
Identity thieves often steal names and numbers from public records, including birth certificates, death certificates, driver’s licenses, passports, and vehicle registrations. They also obtain personal data from friends, family members, neighbors, co-workers, employers, landlords, and healthcare providers. The IRS estimates that $16 billion in uncollected taxes is owed yearly because of identity theft.
Regarding identity theft, children and deceased people are especially vulnerable. In fact, according to the Federal Trade Commission (FTC), children under age 13 make up about half of all ID theft victims. Because many parents don’t realize their child’s identity has been compromised, kids are often targeted by criminals.
If you believe your identity has been stolen, contact the FTC’s Identity Theft Resource Center at www.idtheftcenter.org or 877-438-4338.
Reduce Your Exposure to Identity Theft
Identity theft happens when someone uses your personal information without permission to commit fraud. Identity thieves often steal your name, date of birth, Social Security number, driver’s license, credit card numbers, bank account numbers, passwords, email addresses, home address, work address, etc. Once they obtain your data, they can open fraudulent accounts in your name, apply for loans or credit cards, take out cash advances on your credit cards, make purchases online or offline, transfer money into their accounts, and even file tax returns in your name.
The most common way people become victims of identity theft is when they receive unsolicited emails, texts, calls, letters, or postcards asking for personal information. They think nothing about giving out their data because they don’t realize how easy it is for criminals to access this information.
If you suspect that you’ve been a victim of identity theft, here are some things you can do to prevent further damage:
1. Contact local law enforcement immediately. This includes contacting police departments, FBI offices, state consumer protection agencies, and credit bureaus. You can find your local office by calling 866-472-8678.
2. Immediately change your passwords and log off social media sites where you used your real name.
3. Monitor your credit reports regularly. Review your credit report thoroughly and dispute inaccurate information. Your free annual credit report can be found at www.annualcreditreport.com.
4. File a complaint with the FTC. To learn more about what steps to take if you believe you’re being victimized, call the FTC Consumer Response Center at 800-382-1222.
Report Identity Theft Immediately
If you suspect identity theft, it’s important to take action immediately. You don’t want to wait too long because it could mean losing access to credit cards, bank accounts, Social Security benefits, etc. You can file a complaint with the FTC online at identitytheft.gov or by calling 1-877-438-4338.
You’ll need to provide information like your name, address, date of birth, driver’s license number, passport number, account number, telephone number, email address, and proof of identification such as a copy of your social security card, utility bill, paycheck stub or government document.
Need a Tax Attorney’s Assistance?
John McGuire has prepared this article. John is a tax attorney at The McGuire Law Firm, assisting individuals and businesses with various IRS issues, tax planning, and other taxation matters related to partnerships, corporations, and individuals. Feel free to contact The McGuire Law to discuss your issues with a Denver business attorney or tax attorney.
