How To Spot Identity Theft On Your Credit Report

Identity theft continues to be a growing problem in the United States and throughout the world. Millions of victims report problems resulting from identity theft each year, making it a concern for everyone. Despite the many ways you can prevent becoming a victim of identity theft, there are some situations which are simply unavoidable. Knowing how to spot identity theft and what to do afterward are important steps to limit the financial fallout that results from identity theft. Here we look at how your credit report can help you spot identity theft.

When you are reviewing your credit report, pay close attention to the following areas:

• Address or employment changes- Unless you have recently moved or changed jobs there should not be any changes to your address or employment information. You are looking for changes indicate someone else might be opening accounts in your name, not just a small “typo” where your street name is misspelled.

• Recent inquiries- Inquiries on your credit report should reflect activity that you are aware of and authorized. They should correspond with your applications or requests for credit as well as periodic checks requested by your creditors. If you spot inquiries that you know you did not request or some that are not from your previous creditors or employers, someone might be using your personal information to obtain credit.

• Account activity- Your credit report shows the activity of all accounts, including those that are inactive, open or closed. Pay close attention to activity on older accounts which you may not use. It is not uncommon for an identity thief to take over old accounts that people may have forgotten about, changing the billing address and running up high balances. If you have older accounts that you do not use, it might be a good idea to close them to avoid potential fraudulent charges.

• Public records or negative information- Clearly you know whether or not your bills are past due or if you have been sued, face foreclosure or eviction. All of these things are recorded on your credit report and if you see something that isn’t correct, it’s time to take action and find out what is going on.

Basically you want to review all information to check for accuracy. Do not just assume it is a mistake, when what you are looking at could be an indication that someone else is using your identity to run up balances, leaving you to pick up the pieces. It is important that you contact each creditor if you suspect you have been the victim of identity theft. You should also place a fraud alert on your credit reports to stop the opening of other accounts in your name. Filing a complaint with the Federal Trade Commission and contacting your local police department are additional steps you can take as a victim of identity theft.