Identity fraud is a serious problem that can occur suddenly and without warning. If you are a victim of this crime, it can take months or even years to recover from the financial and emotional impact it can have. Therefore, it is essential to know what steps you can take to speed up the recovery process.
Here are five steps you can take to counter the event if your identity has been stolen and your financial life is severely affected:
The long-term effects of identity theft
Identity theft is not a passing event that is forgotten after a few months. Instead, its impact can last for months, if not years, and cast a huge shadow over your life.
Identity theft has a psychological aspect that can take its toll and leave you feeling at odds with everything you previously took for granted. Being a victim of criminals in this way can lead to feelings of anxiety and violation. Sleep may also be affected: The Identity Theft Resource Center found that sleep disorders affect 41% of identity theft victims.
Fears for financial security, a sense of helplessness, and suicidal feelings also occur among victims of identity theft.
Of course, identity theft also affects victims financially. You will almost certainly be out of money for a while. Borrowing from family and friends, selling possessions to cover identity theft expenses, and even taking out payday loans rarely make you feel better. On the contrary, the added stress of debt can cause greater psychological stress.
This can also translate into physical illnesses. Victims of identity theft have reported everything from breathing difficulties, high blood pressure and heart palpitations to fatigue, muscle aches and even grief (from loss of financial security, confidence and aspirations).
A timeline of identity theft recovery
Identity theft can rarely be recovered quickly. It largely depends on the type of theft you experienced.
- Credit card fraud: The time it takes you to discover and report the scam is the same time you should expect in most cases. If you regularly check your credit card statements or have alerts on your account, this should be no more than a month. After that, credit card companies will cover the stolen credit.
- Total identity theft: With accounts opened in your name, recovery can take months. Decreasing fraudulent bank accounts, loans and other identity theft takes time. Proof that you did not set up the accounts is required. Repairing the damage can take years when you also incur a tax debt, as in some cases, or other crimes are committed in your name.
Unless you are incredibly lucky and detect identity fraud early, you will likely spend at least a year rebuilding the effects of identity theft.
How to recover from identity theft
So how can you recover from identity theft and minimize the psychological impact?
1. Contact the fraud departments of the affected accounts
If you discover that your identity has been stolen and you become a victim of fraud, there are certain steps you should take to report the incident. First, contact the fraud department of the affected banks and credit card companies. You should also contact the finance company if the scam was related to auto financing or any other type of financing. Additionally, it is important to report the theft to local police as soon as possible. Ideally, all of these steps should be taken within 24 hours of discovering the fraud.
2. Check your account statements and records
To ensure you have a complete understanding of the fraud that occurred, it is important that you carefully review all of your financial activity during the period in which the fraudulent activity took place (and even some time before). This means you should take the time to closely examine your bank statements and other financial records. Also, be sure to request any statements that have not been sent to you. It's also important to review all of your financial accounts, including banks, loan and credit card companies, as well as any online store or PayPal accounts you may have used during that time.
3. Detail your movements during the fraud period
If you suspect fraudulent activity has taken place, it is important that you take immediate steps to document your actions and prove your innocence and that you were not involved in the fraudulent activity. Unfortunately, victims of fraud are often required to prove their innocence. You can use Google Maps to track your movements and locate where you were at a particular time. Additionally, you may be able to find old receipts or registration details from your employer to prove that you were at work when a loan was taken out at a bank branch, for example.
4. Get legal advice from an identity theft specialist
It is a good idea to contact an attorney and provide them with as much information as possible when it comes to fraud. Seeking legal advice is essential as your bank will be investigating you. However, don't just contact your regular family lawyer. Instead, look for someone who specializes in fraud and identity theft. They will be able to work with your bank and any federal agencies involved, which can help reduce any stress you may experience.
5. Contact the Identity Theft Resource Center (ITRC)
There is a free help service available from ITRC that can give you almost all the information you need about identity theft. They offer a comprehensive service and provide detailed steps on what you should do if you are a victim of identity fraud. Additionally, you can find information related to different scams, which can help you identify the cause of your identity theft.
In addition, the website offers various resources, facts, figures and a regular newsletter.
Are you affected by identity theft in the UK? Contact the Fraud Action team.
Prevent future identity theft
You've overcome identity theft. You probably don't want to go through all this again. To avoid a repeat of the months-long recovery of your identity, your finances, and maybe even your sanity and health, take steps to protect your accounts.
Stop clicking on links in unsolicited emails from your bank, loan company, PayPal or Facebook. Instead, learn how to spot fake emails, change your passwords, employ stronger security measures (two-factor authentication, where a code is sent to your phone or email when you try to log into an online banking account, for example). example) and remain alert. of the risks. Know and understand how it happened the first time to reduce the chances of it happening again.
